A Goulburn Valley fruit-growing company, R J Cornish & Co. Pty Ltd, has been forced to take corrective action after making nearly $127,000 in unlawful wage deductions from 112 employees.

The company, which operates orchards in Cobram and Muckatah, deducted workers’ wages for power ladder hire, fuel, and sprinkler damage—none of which were legally permitted under the Fair Work Act.

How It Happened

In March 2024, Fair Work Inspectors conducted surprise inspections as part of a nationwide compliance campaign. They uncovered that between July 2017 and June 2024, R J Cornish deducted:
✅ $85,953 for power ladder hire
✅ $40,556 for fuel
✅ $350 for sprinkler damage

The majority of affected workers were casual fruit pickers, with 39 being on working holiday visas—a group often vulnerable to workplace exploitation.

Fair Work Takes Action

Following the investigation, R J Cornish signed an Enforceable Undertaking (EU), agreeing to:
✅ Repay all affected employees, with $123,249 already back-paid
✅ Locate the remaining four employees and pay $3,610 into the Commonwealth Consolidated Revenue Fund
✅ Pay a $5,500 contrition payment
✅ Undergo an independent audit to ensure future compliance

Lessons for Employers

Fair Work Ombudsman Anna Booth emphasized that the agriculture sector remains a key focus area, particularly due to the high number of vulnerable workers, including visa holders and young people.

💬 “Deductions from wages are only lawful in very limited circumstances. Employers must understand these laws, or they risk significant penalties,” Ms. Booth said.

This case is a strong reminder that businesses must comply with Fair Work regulations to avoid serious consequences—including financial penalties and reputational damage.

More Enforcement in the Agriculture Sector

This is not an isolated incident. In recent cases, the Federal Court has imposed significant penalties against other Victorian farms:
⚖️ A & G Lamattina & Sons Pty Ltd (September 2024) – Fined $166,860 for underpaying migrant workers.
⚖️ Lotus Farm (April 2024) – Fined $159,793 for underpayments and falsifying records.

How to Stay Compliant

If you’re an employer in horticulture or any industry, now is the time to review your wage practices and ensure you’re fully compliant.

📌 Download Our Fair Work Compliance Guide for Agriculture Employers. Want a quick overview of the key takeaways from this case? Download our Fair Work Compliance Guide for a handy reference on staying compliant and avoiding costly penalties.

Contact us today for help getting compliant 1800 877 747 or hello@hrdynamics.com.au