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Labour hire firms under investigation over possible underpayments

02 May 2024

Labour hire firms at a farm in Australia are under investigation into possible underpayments and other non-compliance.

Labour Hire Authority compliance officers and Fair Work Ombudsman inspectors visited the farm in April, following reports alleging issues with underpayment of workers, record-keeping and licensing, including an allegedly unlicensed provider. The farm is located in Melbourne’s south-east.

Officers interviewed workers and key staff from the host and providers, and collected financial documents to enable thorough investigation of the claims.

The host advised they used LHA’s Follow My Providers tool to stay updated on their provider’s licence status and ensure they were only using licensed providers to supply their workers.

Under the ‘Labour Hire Licensing Act 2018 (Vic)’, providers must comply with all relevant workplace laws, and may have their licence cancelled for non-compliance.

Labour Hire Authority officers said they were satisfied the host was compliant with their obligations and cooperated fully with their investigation.

The Authority said it is continuing its investigations into potential non-compliance and will continue to work alongside the Ombudsman on the outcomes.