Media release: Labour hire company penalised over unlawful changes in director
24 September 2024
The Supreme Court of Victoria has imposed penalties totalling $220,104.96 on a Victorian labour hire company operating in the horticulture industry, following legal action by the Labour Hire Authority (LHA).
Further penalties totalling $43,784.32 were imposed on two persons who were directors of the company.
The Court held that Monorom Labours Power Pty Ltd (Monorom) had failed to notify LHA of multiple changes of directors and secretaries, and that one director was not a “fit and proper” person to operate a labour hire company.
Monorom contravened the Labour Hire Licensing Act 2018 (Vic) by not informing LHA that director Saravong Tath had ceased to be a fit and proper person due to his being an officer of a company that was under external administration within the preceding five years.
Under the Act, labour hire companies operating in Victoria must inform LHA:
- when changes in their officers occur
- whether their officers are “fit and proper” to operate a labour hire business.
For his involvement in the contraventions, the Court ordered Mr Tath to pay penalties totalling $40,825.92. Visal Leab, another director of the company, had penalties imposed on him amounting to $2,958.40.
LHA’s compliance and enforcement program targets high-impact harms to workers, and industries including horticulture, meat processing, commercial cleaning and security are LHA’s focus.
Recent LHA actions in Victoria’s horticulture industry:
- 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 unlicensed labour hire.
- In December 2022, Ung Services Pty Ltd and its director were issued penalties totalling $483,428.40 for failing to inform LHA of the director’s criminal convictions.
LHA oversees Victoria’s labour hire licensing scheme, which was introduced following findings of widespread exploitation and unlawful activity in the industry.
Quotes attributable to Labour Hire Licensing Commissioner, Steve Dargavel:
“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.”
“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.”
For any queries regarding this release, please contact the Labour Hire Authority Media Team on 0455 272 240 or communications@labourhireauthority.vic.gov.au