Horticulture focus for Vic regulator

In Victoria, businesses supplying workers to pick grapes and other fruit and vegetables must hold a labour hire licence and adhere to its conditions, which helps protect workers, grape growers and the wider horticulture sector.

In recent months, Victoria’s Labour Hire Authority has initiated multiple prosecutions against labour hire companies operating in horticulture, as well as cancelling and refusing a number of labour hire licences, as part of an expanded compliance and enforcement program.

“Workers picking fruit and vegetables are among Victoria’s most vulnerable, so it’s critical that labour hire companies are appropriately scrutinised, licensed, and meet their legal obligations,” says Labour Hire Licensing commissioner Steve Dargavel.

Under the Labour Hire Licensing Act 2018 (Vic):

- businesses must be licensed to supply labour hire workers, including for horticulture activities such as picking, packing, sorting and pruning

- “host” businesses (grape growers) – who engage workers through a labour hire provider – must only use licensed providers.

Significant penalties can apply for breaches of these obligations –exceeding $600,000 for companies and $150,000 for individuals.

"The maximum penalties apply under the Act, whether you engage another company to provide unlicensed labour hire services or actually provide those services,” Commissioner Dargavel explains.

"This helps to support a level playing field, and contributes to a fairer industry that treats workers properly.”

Victoria’s licensing scheme was introduced in 2018 to protect labour hire workers and improve the integrity of the industry, following a number of inquiries highlighting unlawful practices and exploitation.

The Victorian scheme followed the introduction of a labour hire licensing scheme in Queensland. Schemes are also in place in South Australia and the ACT. Businesses in other states should also be aware of any legal obligations regarding labour hire.

How viticulture businesses can contribute

Businesses can help to protect workers and improve the integrity of the labour hire industry by only using licensed providers, and by taking active steps to ensure that workers on their premises are being treated lawfully.

Businesses can also assist by reporting any providers doing the wrong thing via the LHA website, around issues such as:

- labour hire worker mistreatment (e.g. overcrowded accommodation, underpayments)

- illegal arrangements (e.g. tax avoidance)

- a provider advertising or providing services without a licence.

Reports should include details such as business names and addresses, dates and relevant documents or other evidence.

Obligations under the Victorian scheme

Under the Labour Hire Licensing Act 2018 (Vic), labour hire providers (some of which are also grape producers) must meet a range of obligations, including to:

- hold a valid licence before advertising or providing labour hire services

- ensure directors and other key people in the business are “fit and proper persons”

- meet their obligations to workers regarding pay and conditions

- comply with applicable accommodation standards

- meet their legal obligations in areas such as taxation, superannuation and workplace health and safety.

The key obligation for host businesses under this Act is to use only licensed labour hire providers, though hosts can also be liable for a provider’s contraventions under workplace and migration law. issues and OHS violations

“It’s important for businesses to know who is working at their property, and to take active steps to ensure workers are being treated lawfully,” says Commissioner Dargavel.

Focus

On Viticulture And Horticulture

Recent LHA compliance and enforcement actions in Victoria’s horticulture industry include:

- a successful prosecution in December 2022, resulting in fines of over $386,000 against a horticulture company and $96,000 against its director

- proceedings filed in the Supreme Court of Victoria in May 2023, alleging an unlicensed company provided workers to pick fruit and vegetables in several Victorian regions

- a case filed in the Supreme Court of Victoria in July 2023, alleging a company (host) sourced workers through unlicensed labour hire providers for orchards in the Cobram area

- inspections of multiple labour hire accommodation sites, identifying issues such as overcrowding, unauthorised building works, hygiene

- a range of licensing actions against labour hire businesses operating in regional Victoria. These actions are part of a compliance and enforcement program targeting significant harms to workers, and industries including meat and poultry processing, commercial cleaning and security.

To support businesses in understanding the licensing scheme and their obligations, LHA has also held information sessions and targeted engagements across Victoria’s regions throughout 2023. These sessions have covered a range of horticulture-related topics, including recent changes to the Horticulture Award 2020 to include a minimum hourly wage guarantee for fruit pickers v

You can learn more about Victoria’s labour hire licensing scheme, including how to apply for a licence and how to comply as a “host” business, on the LHA website: labourhireauthority.vic.gov.au