A legal dispute involving a Victorian labour-hire company and several horticultural farms is putting renewed attention on how Australia regulates the seasonal workforce that keeps its agricultural industry operating.

Victoria’s Labour Hire Authority is pursuing seven entities, including labour-hire business Soo Soo Siong Pty Ltd and four horticultural companies, over allegations that workers were supplied or engaged without the required Victorian licence. The allegations have not been proven in court.

Authorities allege the labour-hire business operated without a licence between April 2023 and March 2024 and supplied workers to the farms during that period. Around $750,000 was allegedly paid for the labour services. The proceedings also contain allegations concerning the identity and passport of a Malaysian national, which authorities claim were used without his knowledge in connection with a bank account and licence application.

The potential financial consequences are substantial. If the allegations are upheld, combined penalties could exceed $3.3 million, while individuals involved in unlicensed labour-hire activity could face penalties of up to $160,000.

The case comes as concerns over workplace compliance continue across Australia’s horticulture sector. Recent enforcement activity in Victoria’s Sunraysia region found 70 per cent of targeted employers were not compliant with workplace requirements. National enforcement has also resulted in hundreds of thousands of dollars being recovered for underpaid agricultural workers.

The issue is particularly significant because Australian farms rely heavily on seasonal workers, including migrants, backpackers and temporary visa holders. Labour-hire businesses play an important role in connecting workers with farms, but the arrangement can make accountability more complicated when employment conditions are disputed.

Victoria, Queensland, South Australia and the ACT currently operate labour-hire licensing systems, while NSW has no equivalent statewide licensing regime. This creates an unusual situation in regions such as Sunraysia, where agricultural businesses and workers operate across the Victorian-NSW border.

The dispute therefore raises a broader question: should Australia introduce a single national labour-hire licensing system?

A consistent framework could make compliance easier to enforce, reduce regulatory gaps and create a fairer environment for farmers who follow the rules while giving vulnerable workers stronger protection regardless of which side of a state border they work on.