The Fair Work Ombudsman has commenced legal action against a vegetable farm in Victoria for allegedly underpaying 28 migrant workers more than $645,000.
Facing court is Bulmer Farms Pty Ltd, which produces vegetables including lettuce, spinach and broccoli in Lindenow, in the East Gippsland region.
The Fair Work Ombudsman investigated Bulmer Farms after receiving a referral from the federal Department of Employment and Workplace Relations.
It is alleged that the investigation discovered that Bulmer Farms underpaid 28 migrant workers from Kiribati, Timor Leste and the Solomon Islands a total of $645,567, including $8,964 in unlawful deductions from their wages.
It is alleged that the main cause of the underpayment was Bulmer Farms paying the workers set weekly amounts based on annualised salaries, irrespective of the hours they worked, which failed to cover their entitlements under the Horticulture Award 2010 and 2020.
Bulmer Farms had engaged the workers under the Pacific Australia Labour Mobility (PALM) scheme. The workers were engaged in a range of roles, ranging from farm workers, to forklift and tractor operators.
The alleged underpayments occurred between December 2019 and December 2023.
It is alleged the workers were paid flat amounts ranging from $884 to $1,105 per week for a 38 hour week, but more than half of the time were required to work more than 38 hours per week.
This allegedly resulted in underpayment of their minimum ordinary hourly rates, overtime rates, and public holiday work.
In 7 per cent of cases, workers were allegedly required to work more than 50 hours per week.
It is alleged that 40 per cent of the overall underpayment to workers related to entitlements to overtime rates. It is alleged that Bulmer Farms also underpaid various leave entitlements, public holiday pay and minimum-engagement pay, and made unlawful deductions from wages relating to airfares, accommodation, and health insurance.
Bulmer Farms allegedly also breached record-keeping and pay slip laws and unlawfully requested or required some workers to perform unreasonable hours in excess of 38 hours per week.
Alleged individual underpayments range from $1,500 to more than $39,000.
Fair Work Ombudsman Anna Booth said the alleged scale of the underpayment of vulnerable migrant workers meant litigation was appropriate.
"The alleged underpayments of migrant workers by Bulmer Farms across four years was entirely unacceptable, and we will be pursuing penalties to hold the company to account," Ms Booth said.
"Employees must be paid for every hour they work. We've been calling this issue out for years - the law demands that workers are paid for the actual hours they work and employers cannot rely on default annualised salary-based payments if they have not factored in all entitlements for any extra hours worked.
"Employers engaging in this conduct are at high risk of facing legal action in addition to being left with a substantial back-payment bill.
"Employers also need to be aware that taking action to protect migrant workers and improve compliance in the agriculture industry are among our top priorities."
The FWO is seeking penalties against Bulmer Farms Pty Ltd for multiple alleged breaches of the Fair Work Act. The company faces penalties of up to $93,900 per breach.
Bulmer Farms conducted an internal review during the FWO's investigation and made payments of $42,189 to the workers. The Fair Work Ombudsman is also seeking court orders requiring the company to rectify the alleged underpayments in full, plus interest and superannuation.
A directions hearing is listed in the Federal Circuit and Family Court in Melbourne on 21 January 2026.
