A FORMER labour hire company in Far North Queensland is facing major penalties after allegedly underpaying 87 visa-holding farm workers almost $50,000.
The now closed Innisfail-based firm, which employed workers under the Pacific Labour Scheme and Seasonal Worker Programme between December 2018 and May 2020, allegedly deducted more than $42,000 from the workers' wages for accommodation costs in excess of the actual cost of boarding houses and farmhouses.
The Fair Work Ombudsman launched legal action after receiving reports of potential non-compliance from the Queensland Labour Hire Licensing Compliance Unit and the federal government departments administering the PLS and SWP.
Fair Work alleges more than a dozen instances of the company deducting, in total, in excess of $1000 more from a worker's wages than was required to cover their accommodation costs.
The accused also made unlawful deductions from workers' wages for transport costs, and underpaid their Sunday overtime rates, time-off-in-lieu entitlements and minimum-engagement pay, under the Horticulture Award 2010.
The company faces penalties of up to $63,000 per contravention. It us unclear how many contraventions in total would apply.
It employed the workers from countries including Papua New Guinea, Vanuatu and Solomon Islands for periods of between one month to about 16 months, supplying them on an on-hire basis to farms at locations near Cairns, including Innisfail, Tolga, Walkamin, Mareeba, Upper Daradgee and Mourilyan.
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They picked, sorted and packed fruit and vegetables and performed general labouring and housekeeping tasks on the farms.
Fair Work Ombudsman Sandra Parker said taking action to improve compliance in the agriculture sector and protect vulnerable workers were top priorities.
"This sector engages many vulnerable workers, such as visa holders, who may be unaware of their rights or unwilling to speak up," Ms Parker said.
"Employers who fail to deliver all their employees' entitlements - including due to unlawful deductions - will be found out and risk facing penalties."
Alleged individual underpayments ranged from $17 to $2041. The company has rectified the alleged underpayments in full.
In June, the company's former director took to social media to share that she was ceasing operations.
"End of an era... yesterday I was the proud employer of 750 Pacific Island workers. Today I am no longer their boss ...," she said.
"After 13 years this door closes for me while I focus on my health and well-being.
"I will always be proud in the part I played educating their children, building their houses and empowering them to go forth with financial security. Tankyu tumas to my team for letting me be your boss."
A directions hearing is listed in the Federal Circuit and Family Court in Brisbane in December.
The company has been contacted for comment.
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