A Victorian labour hire company and its director have been fined over past convictions for drug trafficking and theft.
Labour hire companies require a licence to operate in the state and directors must be fit and proper.
Ung Services Pty Ltd, which supplied horticulture workers in the Yarra Valley, failed to disclose that its new director, Nico Keat, had criminal convictions for drug trafficking and theft.
The Supreme Court of Victoria issued fines of $386,742.72 to Ung Services, and $96,685.68 to Keat, amounting to $483,428 collectively — the largest combined penalty of its kind in Australian history.
The case was prosecuted by the Labour Hire Authority (LHA).
Licence holders must notify the LHA if their directors or other key people change under the state's Labour Hire Licensing Act 2018.
Labour Hire Licensing commissioner Steve Dargave said Keat had previously applied for a licence with another company and was refused.
He then had another person apply for a licence, which was approved, and Keat put his name down as the sole director of Ung Services.
LHA cancelled Ung Services’ licence as a result and proceeded to pursue legal action.
'You'll get found out'
Mr Dargavel said the judgement sent a strong message to labour hire companies attempting to "dodge" laws that protect vulnerable workers.
"That kind of attempt to avoid protection of workers was not right," Mr Dargavel said.
"The judgement says to business that if you're trying to circumvent the rules and get around the rules and do the wrong thing, you'll get found out.
"You'll pay a very high price — not just for your business, but for you personally."
Keat was found guilty of 12 offences relating to drug trafficking, theft and failure to answer bail, LHA investigations confirmed.
Mr Dargavel said people and businesses obeying the law could be reassured that unlawful competitors attempting to undercut the labour market by avoiding the scheme would be penalised.
"The advice to farmers is please make sure you're using licensed labour hire providers and make sure everyone in the supply chain is licensed, " he said.
"If you've got a subcontractor on your site and you're not quite sure, try and find out, because it is your obligation to make sure that you're dealing with businesses that are operating in accordance with the law.
"We want to make sure that the workforce is being treated properly and we've got a sustainable industry."
