This is a joint media release of the Labour Hire Authority and the Fair Work Ombudsman
In the wake of a significant compliance operation by the Labour Hire Authority (LHA) in February, and a concerning 2025 report by the Fair Work Ombudsman (FWO), the heads of the FWO and LHA held a forum with local growers, industry groups and labour hire companies on 17 March.
Having just commenced legal action against two Yarra Valley businesses, Labour Hire Licensing Commissioner Steve Dargavel highlighted findings from LHA's compliance operation in the region, including evidence of serious issues such as labour hire licence fraud and unlicensed operation.
A Fair Work Ombudsman (FWO) report in 2025 highlighted the combined Yarra Valley and Mornington Peninsula's horticulture sector as having the highest rate of non-compliance in Australia (from 15 regions inspected), with 83 per cent of all investigated businesses non-compliant, and 100 per cent of labour hire businesses investigated in breach.
The Healesville event on 17 March saw Fair Work Ombudsman Anna Booth and Commissioner Steve Dargavel engage directly with local businesses and industry bodies about issues in the region and ways to improve compliance.
Growers were also provided with guidance on protecting themselves from the risk of fines, disruption and involvement with criminal elements, in engaging labour hire services. The regulators took questions and heard constructive suggestions from businesses about opportunities to improve compliance with the law.
In the same week, LHA filed legal action in the Supreme Court of Victoria against a Yarra Valley orchard and an allegedly unlicensed labour hire company and its director.
The Fair Work Ombudsman has secured court penalties against Victorian horticulture growers who significantly underpay their employees, including more than $166,000 in penalties ordered against a celery producer in the Mornington Peninsula, and nearly $160,000 in penalties against a tomato and cucumber grower and one of its directors for underpayments at Werribee.
LHA urges all Victorian horticulture and viticulture businesses to ensure they are equipped with the tools and information they need to comply with the law, by visiting labourhireauthority.vic.gov.au/hort-host
The FWO has a range of resources for those in agriculture, including horticulture and the wine industry, available at fairwork.gov.au/find-help-for/agriculture, and a new guide to labour hire and supply chains guide to labour hire and supply chains.
Quotes attributable to Labour Hire Licensing Commissioner, Steve Dargavel:
"We've made it easy for growers to avoid dodgy labour hire operators, so if you use an unlicensed provider, you can expect to feel the full force of the law."
"Solving compliance issues in high-risk areas requires regulators like the FWO and LHA to work closely together, and the industry should expect to see an increased enforcement effort from both of us."
"This is an important conversation to have in the Yarra Valley, at a critical time - we need to see action."
Quotes attributable to Fair Work Ombudsman, Anna Booth:
"Improving compliance in the agriculture sector, including horticulture, is a priority for the Fair Work Ombudsman given its reliance on vulnerable migrant and seasonal labour, as well as its often complex labour supply chains. It is important for growers to have oversight of the labour on their property."
"We welcome the opportunities at forums such as this in the Yarra Valley to talk with growers and labour hire companies, alongside the LHA who we work closely with, on ideas for how the sector can improve its compliance."
"We will continue to hold employers doing the wrong thing to account, but we prefer that they get it right in the first place. We have an array of free resources, including a new labour hire Guide, to steer them towards sustainable compliance."
