19 September 2025

The Fair Work Ombudsman has secured $48,500 in penalties against a Queensland labour hire business and sweet potato farm, and its sole director, for unlawfully docking pay from migrant employees, including for breaching its alcohol policy.

The Federal Circuit and Family Court imposed a $43,000 penalty against McCrystal Agricultural Services Pty Ltd, which operates a farm west of Bundaberg at South Kolan.

In addition, the court imposed a $5,500 penalty against the sole director Russell McCrystal.

The penalties were imposed against McCrystal Agricultural Services for a range of contraventions in 2021 and 2022. These included breaching the Fair Work Act by fining workers under the company’s alcohol policy, and unlawfully deducting overtime overpayments and health insurance premium payments from the workers’ pay.

Mr McCrystal was penalised for his involvement in the alcohol policy deductions contravention alone.

The company rectified the underpayments after they were identified by the FWO and proactively amended its alcohol policy to remove the fines.

McCrystal Agricultural Services is an approved employer under the Pacific Australia Labour Mobility (PALM) scheme, which consolidated the Seasonal Worker Programme (SWP) and Pacific Labour Scheme (PLS). All impacted workers were visa holders.

Fair Work Ombudsman Anna Booth said the litigation highlighted the importance the workplace regulator places on the rights of visa holders.

“The visa holder workers underpaid in this case were highly reliant on their employer. Acting to protect visa holder workers and ensuring compliance with workplace laws across the agriculture sector are priorities for the Fair Work Ombudsman,” Ms Booth said.

“That 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.

“Deductions are lawful only in a limited range of situations, and employers making them must understand those laws. We have a range of information to help employers get it right.

“Any employees with concerns about their pay or entitlements, or any employers seeking information, should contact the Fair Work Ombudsman for free advice and assistance.”

The FWO investigated the employer proactively because of its status as an approved employer under the PALM scheme.

Through its investigation, the regulator found the company’s alcohol policy stated there was zero tolerance for workers being under the influence of alcohol while staying on work site accommodation and that employees would be fined $500 for breaching the policy.

Between January and March 2022, 29 employees faced fines under the alcohol policy, totalling $14,500. Most of these impacted employees were living in accommodation on the farm.

The company also illegally deducted $2.50 more per week than the cost of the health insurance premiums obtained for the employees (a visa requirement), resulting in deductions, between November 2021 and March 2022, of $47.50 each for 27 of the company’s full-time employees, totalling $1,282.50.

In addition, the FWO found that after overpaying 28 casuals for overtime in error in August 2021, the company then deducted, without the employees’ approval, $2,548.60 from the employees’ wages to recover the overpayments in the following pay period.

In total, McCrystal Agricultural Services unlawfully deducted $18,331 from 66 employees who were covered by the Horticulture Award 2020, for work performed between August 2021 and March 2022.

The deductions breached section 324 of the Fair Work Act as they were not principally for the benefit of the employees and were not otherwise lawfully authorised. Further, the overtime overpayment deductions were not authorised in writing.

The farm workers, who were from Vanuatu, performed tasks such as cutting and sorting sweet potato vine into bundles; planting and packing sweet potatoes; weeding; general farm hand tasks; and constructing boxes for packaging.

The FWO has a dedicated PALM scheme webpage which includes general information about workplace rights and entitlements, and links to relevant resources, including translated resources. Information can also be found on the deductions and overpayments webpage.

The FWO’s Horticulture Showcase has self-audit tools, templates for employers hiring pieceworkers and a range of resources for migrant workers.

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

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

Employers can seek information from their employer association if they are a member, and also use the FWO’s pay calculator and Small Business Showcase.