With the horticulture industry a crucial component of the Yarra Valley’s economy, having hands on deck in the fields, orchards and vineyards is critical and labour hire often provides
However, it has become a hotspot for non-compliance with both the Labour Hire Authority (LHA) and Fair Work Ombudsman (FWO) cracking down on the region.
Victoria’s Labour Hire Licensing Commissioner Steve Dargavel said workers picking fruit and vegetables are among Victoria’s most vulnerable, so it’s critical that all labour hire companies employing these workers are licensed.
“Licensing helps to ensure labour hire businesses are run lawfully, by fit and proper persons – to protect workers and maintain a level playing field for businesses,” he said.
“It’s obvious why criminals might want to avoid the scrutiny involved in applying for a labour hire licence, so it’s critical that growers always check the licence.”
In the horticulture industry alone, the LHA has achieved over 450 licence cancellations and refusals, including multiple high-profile prosecutions of businesses and individuals, with more than $2.25 million in combined penalties imposed by the Supreme Court of Victoria.
The Yarra Valley remains a key focus of the LHA, with the LHA, other regulators such as the FWO and law enforcement conducting regular inspections of farms in the area, with growers warned to expect an increased LHA presence and hefty fines for those who engage unlicensed providers.
The horticulture industry is a regulatory challenge for authorities, with bad actors often moving across the state to follow the harvest seasons and cause harm across regional or jurisdictional boundaries.
Mr Dargavel said the LHA will be prosecuting growers that engage unlicensed providers and growers can expect to face hefty fines.
“Collaboration between agencies and the involvement of federal agencies is fundamental to removing exploitative providers from the industry and protecting workers,” he said.
The LHA was established following the handing down of the Victorian Inquiry into the Labour Hire Industry and Insecure Work, with the horticulture industry posing a higher risk of worker exploitation due to the seasonal and transitory nature of the work, and high proportions of migrant workers from a range of backgrounds, including Pacific Australia Labour Mobility (PALM) scheme workers.
Since being established in 2019, LHA has taken more compliance and enforcement action against labour hire businesses in horticulture than in any other industry area and has issued 392 active licences in the horticulture industry as of 30 January 2026.
52 licences have been granted with conditions, 198 applications refused, three renewals refused, 252 licences cancelled by LHA and 255 licences cancelled at the licence holder’s request.
In the Yarra Valley, the LHA has:
Begun investigating several labour hire providers for alleged illegal phoenix activity (dissolving and reforming a business to avoid paying debts) and non-compliance after unannounced visits on 26 March 2025.
Through the Supreme Court, Nirrorn Labour Pride Pty Ltd and its director, Sokheng Seng, were fined a total of $287,500 in February 2025 for failing to notify the LHA of several, repeated changes in company directors and that Mr Seng was no longer a fit and proper person.
Achieved penalties of $220,104 against Monorom Labours Power Pty Ltd and $43,784 against two of its directors, Saravong Tath and Visal Leab, for similar offences to Mr Seng in September 2024.
Achieved fines totalling $483,428.40 against Ung Services Pty Ltd for failing to disclose that its director Nico Keat had criminal convictions for offences including drug trafficking and theft in December 2022.
Recent compliance investigations by the LHA have uncovered unlicensed labour hire and licence fraud, underpayment and worker exploitation, substandard worker accommodation, complex and opaque labour supply chains and indicators of modern slavery.
In 2025, the Victorian Parliament passed legislation to strengthen the LHA’s powers, including allowing them to prosecute hosts who engage unlicensed labour hire providers, meaning growers need to be vigilant.
Hosts can protect their business by having a clear understanding of who is supplying labour to their business and under what arrangements, checking a provider’s licence on the Labour Hire Licence Register and using the Follow My Providers tool to receive licence status updates, being alert to warning signs of licence fraud or illegal phoenix activity, including frequent changes to business names, bank account details or unclear corporate structures and reporting suspected non-compliance confidentially using the Report a Problem tool.
Labour hire hosts can find guidance at labourhireauthority.vic.gov.au/host/horticulture-hosts/ or check if their provider is licensed at labourhireauthority.vic.gov.au/check-a-provider-s-licence-status/.
Growers use the Report a Problem tool via online.labourhireauthority.vic.gov.au/Case/ReportProblem.
If you or someone you know has been or is currently concerned about the conduct of a labour hire operator and would like to share your story, contact the Star Mail via editor@mailcommunity.com.au.
To find out how the FWO is targeting non-compliance in the region, pick up a copy of next week’s Star Mail or keep an eye on the mailcommunity.com.au website.
