• Prosecution

The Supreme Court of Victoria issued penalties totalling $220,104 against a horticulture company, and $43,784 against two directors, following legal action by the Labour Hire Authority (LHA).

The Court found Monorom Labours Power Pty Ltd (Monorom), which provided workers to farms in regions including the Yarra Valley and Koo Wee Rup, contravened the Labour Hire Licensing Act 2018 (Vic) by failing to notify LHA:

• of multiple changes in company directors and secretaries
• that a director was not a fit and proper person.

“Ensuring we have fit and proper people running Victorian labour hire companies is an important way of protecting workers and improving the industry’s integrity,” said Labour Hire Licensing Commissioner Steve Dargavel.

As well as the penalties imposed on Monorom, two directors of the company were issued penalties totalling $43,784 for their involvement in the contraventions.

Monorom contravened the Act when Saravong Tath became a director and the company failed to inform LHA that Mr Tath was not a fit and proper person, as he had been an officer of two companies that were placed under external administration within the preceding five years.

Mr Tath was ordered to pay penalties totalling $40,825 and director Visal Leab had penalties imposed amounting to $2,958.

“Labour hire workers in the horticulture industry are among Victoria’s most vulnerable, so the industry is a key focus for our expanded compliance and enforcement program, Commissioner Dargavel said.

Ensure you notify LHA of any changes in relevant persons

Under the Act, directors and other key people involved in managing labour hire businesses must be ‘fit and proper’, to protect workers and improve the integrity of the industry.

LHA must be notified if directors or other relevant persons change or are no longer fit and proper or compliant with legal obligations under the Act.

If you have queries around this requirement, contact LHA by phone on 1300 545 200 or email enquiries@labourhireauthority.vic.gov.au

Beware of illegal phoenix activity

Although not alleged in LHA’s legal action against Monorom, frequent changes in company directors can indicate illegal phoenix activity – where a business is wound up or abandoned to avoid debts or obligations, then continues under a new business identity.

LHA works closely with other agencies, such as the Fair Work Ombudsman and the Australian Taxation Office, as a member of the national Phoenix Taskforce to tackle illegal phoenix activity and the significant harms it can cause to workers and legitimate businesses.

In October, LHA officers conducted joint site visits to farms throughout Victoria as part of the Phoenix Taskforce Day of Action, identifying several alleged instances of non-compliance that are under further investigation.

Compliance and enforcement in horticulture

The horticulture industry continues to be a focus of LHA compliance and enforcement, with significant outcomes:

• In December 2023, Honey Bunny Global Pty Ltd and its director were issued penalties totalling $264,352 for engaging unlicensed providers to source workers.
• In November 2023, A L Star Express Pty Ltd was issued penalties totalling $617,916 for operating without a labour hire licence.
• In December 2022, Ung Services Pty Ltd and its director were issued penalties totalling $483,428 for failing to inform LHA of the director’s criminal convictions.

As well as these enforcement actions, LHA has undertaken a range of inter-agency investigations of horticulture providers in 2024, following visits to farms in:

• Melbourne’s south-east in April
• the Yarra Valley and Mornington Peninsula in July
• north-west Victoria in August.