The Fair Work Ombudsman has secured $48,500 in penalties against a Queensland labour hire business and its sole director after the unlawful docking of wages from migrant farm workers, including fines for alleged breaches of an alcohol policy.
The Federal Circuit and Family Court ordered McCrystal Agricultural Services Pty Ltd, which operates a sweet potato farm at South Kolan west of Bundaberg, to pay $43,000. Its sole director, Russell McCrystal, was fined $5,500 for his involvement in the alcohol policy deductions.
The Ombudsman said the penalties related to a series of contraventions in 2021 and 2022, including breaching the Fair Work Act by fining workers $500 for alleged breaches of the company’s “zero tolerance” alcohol rules while living in onsite accommodation, and unlawfully deducting overtime overpayments and health insurance premium payments from wages.
The regulator investigated the employer proactively because the company is an approved employer under the Pacific Australia Labour Mobility (PALM) scheme, which consolidated the Seasonal Worker Programme and Pacific Labour Scheme. All affected employees were visa holders.
Fair Work Ombudsman Anna Booth said: “The visa holder workers underpaid in this case were highly reliant on their employer. Acting to protect visa holder workers and ensuring compliance with workplace laws across the agriculture sector are priorities for the Fair Work Ombudsman,” Ms Booth said.
The court heard that between January and March 2022, 29 employees — most living in accommodation on the farm — were fined a total of $14,500 under the alcohol policy. The company also deducted $2.50 per week more than the actual cost of required health insurance premiums for 27 full-time employees between November 2021 and March 2022, amounting to $47.50 each and totalling $1,282.50.
In August 2021, after mistakenly overpaying 28 casuals for overtime, the company recovered $2,548.60 in the next pay run without the workers’ written consent. In total, McCrystal Agricultural Services unlawfully deducted $18,331 from 66 employees covered by the Horticulture Award 2020 for work performed between August 2021 and March 2022.
The FWO found the deductions breached section 324 of the Fair Work Act because they were not principally for the benefit of employees and were not otherwise lawfully authorised. The overtime recovery was not authorised in writing.
The workers, from Vanuatu, carried out tasks including cutting and sorting sweet potato vine into bundles; planting and packing sweet potatoes; weeding; general farm hand duties; and constructing packaging boxes.
The company has repaid the underpayments identified by the FWO and has amended its alcohol policy to remove fines. Mr McCrystal was penalised for his involvement in the alcohol policy deductions only.
Ms Booth added: “Any employees with concerns about their pay or entitlements, or any employers seeking information, should contact the Fair Work Ombudsman for free advice and assistance.”
The Ombudsman said resources for PALM scheme participants, information on deductions and overpayments, and tools for horticulture employers and workers are available on the FWO website.
