Fair Work Ombudsman
Citation: FWO-2024-09-26-mccrystal-litigation-media-release
At a glance
- Respondent
- McCrystal Agricultural Services Pty Ltd
- Penalty
- $500
- Employees affected
- 66
- Awards cited
- MA000030
What happened
The Fair Work Ombudsman has commenced legal action against McCrystal Agricultural Services Pty Ltd, a Queensland labour hire business and sweet potato farm, and its sole director, Russell McCrystal. The company operates under the Pacific Australia Labour Mobility (PALM) scheme. The FWO alleges the company unlawfully deducted money from 66 employees, primarily visa holders from Vanuatu, between August 2021 and March 2022. These deductions included fines for alcohol policy breaches ($14,500), excessive health insurance premiums ($1,282.50), and recovering overtime overpayments ($2,548.60). Some employees were left with as little as $150 net pay after deductions. The workers performed tasks such as planting, packing, and weeding sweet potatoes.
What was decided
The Fair Work Ombudsman is seeking penalties against McCrystal Agricultural Services Pty Ltd and Russell McCrystal for alleged contraventions of the Fair Work Act. The company faces penalties of up to $66,600 per contravention, and Mr McCrystal faces a penalty of up to $13,320. The FWO alleges the deductions were not principally for the benefit of the employees and were not lawfully authorised, particularly the overtime recovery deductions which were not authorised in writing. The employer has rectified the underpayments identified during the investigation. A directions hearing is scheduled for February 3, 2025, in the Federal Circuit and Family Court in Brisbane.
What it means for employers
Employers, particularly those participating in labour mobility schemes, must ensure all wage deductions are lawful and for the benefit of the employee. Written authorisation is required for deductions to recover overpayments. The Fair Work Ombudsman will hold employers accountable for unlawful deductions, especially those impacting vulnerable visa holder workers. Employers should review their policies and practices to ensure compliance with the Fair Work Act.
What it means for employees
Visa holder workers are particularly vulnerable and reliant on their employers. Employees should seek free advice and assistance from the Fair Work Ombudsman if they have concerns about their pay or entitlements. Unlawful deductions can significantly reduce net pay, leaving employees with very little income.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2024-media-releases/september-2024/20240926-mccrystal-litigation-media-releaseWant more cases like this?
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This summary was drafted by AI from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →