Agriculture Fair Work
Case Study
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$130,000
6
$38,254
64-88 days
(three workers)
Case overview
A Queensland beef cattle farm operator and its company were penalised $130,000 after underpaying six overseas backpackers for their work between January 2014 and September 2015.
The workers, who were employed on working holiday visas, were paid a flat hourly rate of $17 despite regularly working long hours, including overtime. Some worked up to 13 hours a day, six or seven days a week, with three employees working between 64 and 88 consecutive days without a day off.
A Fair Work Ombudsman investigation found the six workers had been underpaid a total of $38,254, with individual employees receiving between 28% and 51% less than their minimum entitlements. The underpayments included overtime, ordinary wages, casual loading, public holiday pay and leave entitlements.
The Federal Circuit Court imposed penalties of $20,000 on the farm operator and $110,000 on the company. The employer was also penalised for failing to provide employees with access to the applicable Pastoral Award 2010. Although the workers were eventually back-paid in full, the case highlighted the serious consequences of failing to understand and comply with workplace obligations.
Case facts
What they should have done
The company should have better understood employees rights under the relevant award and minimum entitlements included within the award and NES.
How Happy HR could have helped
Award Interpretation
Better HR practices
Happy HR ROI$130,000 penalty = 43 years of Happy HR subscription
Got questions?
Frequently asked questions
What happened in this agriculture Fair Work case?
A Queensland beef cattle farm operator and its company were penalised $130,000 after underpaying six overseas backpackers a total of $38,254. The workers were paid a flat hourly rate despite regularly working overtime, with some working up to 88 consecutive days without a day off. The Federal Circuit Court imposed penalties following legal action by the Fair Work Ombudsman.
Why were the farm workers underpaid?
The workers were mostly paid a flat rate of $17 per hour for all hours worked, including overtime. This meant they did not receive their correct entitlements under the Pastoral Award 2010, including overtime rates, ordinary wages, casual loading, public holiday pay and leave entitlements.
What were the consequences for the farm operator?
The farm operator was penalised $20,000, while the company received a further $110,000 penalty. The six workers were also underpaid $38,254 in total. Although they were eventually back-paid in full, the case demonstrated that correcting underpayments does not necessarily prevent an employer from facing significant penalties.
What should the employer have done differently?
The employer should have understood and applied the correct award rates and employment conditions, accurately calculated overtime and other entitlements, maintained appropriate employee records, and ensured workers received their required days off. They should also have made the applicable Pastoral Award available to employees.
How could Happy HR have helped prevent this Fair Work claim?
Happy HR could have supported the business with award interpretation, HR compliance guidance and better employment practices. With access to qualified HR support, the employer could have better understood its obligations, identified potential compliance issues and established more consistent processes for managing employee entitlements.
Discover how better HR support could help agriculture businesses avoid costly Fair Work claims
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