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Introduction
A Queensland sweet potato farming company and its director have been fined $48,500 after unlawfully deducting thousands of dollars from dozens of Pacific Island workers employed under the federal labour mobility scheme. The Federal Circuit Court found the deductions, which included “fines” under an alcohol policy, were in breach of the Fair Work Act.
Court Findings
The Federal Circuit Court ordered McCrystal Agricultural Services to pay a penalty of $43,000, with an additional $5,500 penalty imposed on sole director Russell McCrystal.
The court found the company:
- Illegally deducted $14,500 in “alcohol fines” from 29 employees living in on-farm accommodation between January and March 2022.
- Overcharged 27 full-time employees for health insurance premiums, taking $2.50 per week more than required, totalling $1,282.50.
- Deducted $2,548.60 from 28 casual workers’ wages without approval to recover payroll errors in August 2021.
In total, the company unlawfully withheld $18,331 from 66 employees between August 2021 and March 2022.
Impact on Workers
All of the affected workers were from Vanuatu and employed under the Pacific Australia Labour Mobility (PALM) scheme. The Fair Work Ombudsman (FWO) said they were particularly vulnerable, being visa holders reliant on their employer for both income and accommodation.
“The visa holder workers underpaid in this case were highly reliant on their employer,” said Fair Work Ombudsman Anna Booth.
She emphasised that ensuring compliance in agriculture and protecting vulnerable migrant workers remains a regulatory priority.
Regulator’s Position
The Ombudsman stressed that unlawful deductions would not be tolerated:
“Our focus includes ensuring any deductions from the wages of vulnerable visa holder workers are lawful and appropriate. Where they are not, we will hold employers to account and significant penalties may follow.”
The FWO confirmed the company has since rectified underpayments and amended its alcohol policy.
Wider Context
The case is the latest in a series of enforcement actions against employers exploiting PALM scheme workers. Critics argue that poor oversight and power imbalances have left many seasonal and visa workers at risk of exploitation, with deductions for accommodation, transport, or “fines” regularly cited in investigations.
This case adds to broader concerns about conditions for migrant workers in Australia’s agricultural sector, where dependence on labour mobility schemes is growing.
Conclusion
McCrystal Agricultural Services’ $48,500 fine underscores the risks for employers who impose unlawful deductions on vulnerable workers. While the company has since repaid its staff and revised its policies, the ruling sends a clear message that misuse of power over migrant workers will trigger regulatory action.