Horticulture company and its director issued penalties totalling $287,500 for failing to comply with licence obligations
6 February 2025
The Supreme Court of Victoria has imposed penalties totalling $287,500 on a horticulture company and its director for failing to comply with licence obligations, following legal action by the Labour Hire Authority (LHA).
The Court found Nirrorn Labour Pride Pty Ltd (Nirrorn), which provided workers to Victorian farms, contravened the Labour Hire Licensing Act 2018 (Vic) by failing to notify LHA:
- of several, repeated changes in company directors
- that a director was no longer 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 Nirrorn, company director Sokheng Seng was penalised $57,500 for his involvement in the contraventions.
In Nirrorn’s labour hire licence application in 2022, Seng was listed as the only nominated officer or relevant person at the company.
The Court found that in late 2022 and early 2023, Nirrorn had repeatedly swapped company directors between Seng and another person several times without notifying LHA.
Seng was also an officer of a separate company, Monorom Labours Power Pty Ltd, that had their labour hire licence cancelled by LHA in January 2024. This decision meant Seng was no longer a fit and proper person under the Act.
In September 2024, the Court issued Monorom penalties totalling $220,104, and $43,784 against two directors for similar contraventions of the Act.
“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 if they 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 Nirrorn, 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.
As a member of the national Phoenix Taskforce, LHA works closely with the Australian Taxation Office, Fair Work Ombudsman and other agencies to tackle illegal phoenix activity and the significant harms it can cause to workers and legitimate businesses.
Compliance and enforcement in horticulture
The horticulture industry continues to be a focus of LHA compliance and enforcement, with significant outcomes:
- In September 2024, Monorom Labours Power Pty Ltd and two directors were issued penalties totalling $263,889 for failing to comply with licence obligations.
- 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 providing labour hire services without a licence.
As well as these enforcement actions, LHA undertook a range of inter-agency investigations of horticulture providers in 2024, following visits to farms in: