17 September 2024

The Fair Work Ombudsman has secured $166,860 in court-ordered penalties against one of Australia’s largest celery producers for underpaying vulnerable migrant employees more than $91,000.

The Federal Circuit and Family Court imposed the penalties against A & G Lamattina & Sons Pty Ltd (Lamattina), whose farm is at Boneo on Victoria’s Mornington Peninsula.

Lamattina breached the Fair Work Act after it underpaid employees and failed to pay them in full and at least monthly between February 2020 and February 2021. It failed to pay minimum wages, casual loading, overtime and public holiday rates owed under the Horticulture Awards 2010 and 2020.

The Court found the conduct was deliberate.

The FWO investigated the company after receiving requests for assistance from three farmhands, each visa holders, who had not been paid any wages during extended periods of their employment.

Despite raising concerns about their pay with their employer, one of the farmhands was only paid for 10 of the 52 weeks of work; another only six out of 36 weeks worked; and the third only eight out of 41 weeks worked.

The three employees were underpaid $91,907 between them in the course of a year: one of them more than $37,000 and the other two more than $27,000 each.

The farmhands are from non-English speaking backgrounds – they speak Indonesian and Malay – and held bridging visas when employed by Lamattina. They performed tasks such as planting, picking and cutting celery on a casual basis.

Fair Work Ombudsman Anna Booth condemned the breaches.

“The conduct by the employer in this case was appalling, and I believe supermarket shoppers would be dismayed to know their Lamattina celery was grown by workers deprived of such large sums of their hard-earned wages,” Ms Booth said.

“We don’t tolerate the exploitation of migrant workers, who have the same rights in Australia as any other workers. Protecting their workplace rights is an ongoing priority for the Fair Work Ombudsman.

“Boosting compliance in the horticulture and agriculture sectors is also a priority.

“Any worker with concerns about their pay and entitlements is encouraged to contact the Fair Work Ombudsman for free advice and assistance.”

In his judgement, Judge Karl Blake characterised Lamattina’s conduct as “egregious”.

“It is difficult to think of a contravention of an award that is more serious than a complete failure to pay employees their wages. That is what occurred in this case,” His Honour said.

“The [company]'s conduct was clearly deliberate and intentional.”

In imposing the penalties, Judge Blake considered the employees’ losses to be significant and stated they were vulnerable employees “…exploited or taken advantage of by their employer”.

His Honour noted the extended period of time over which the contraventions had occurred; the significant sums of the underpayments; Lamattina’s lack of remorse and the employer having taken no steps to prevent contraventions in the future, plus its lack of cooperation with the regulator.

Lamattina rectified the underpayments in full in February 2023 – at least two years after the relevant work period.

Earlier this year, the Fair Work Ombudsman secured nearly $160,000 in penalties against an unrelated farm business in Victoria for underpaying two employees, falsifying records to hide the underpayments, and making unlawful deductions.

Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance. An interpreter service is available on 13 14 50.

The FWO also has an online anonymous report tool, including options to report in languages other than English, and information for migrant workers is available at our visa holders and migrants webpage.

The FWO provides information for horticulture sector employers and employees in its Horticulture Showcase. Workplace participants can also use FWO’s pay calculator.

Employees can also seek information from their employer and their union, if they are a union member.