Fair Work Ombudsman
Citation: FWO-2025-09-19-mccrystal-agricultural-penalty-media-release
At a glance
- Respondent
- McCrystal Agricultural Services Pty Ltd
- Penalty
- $48,500
- Employees affected
- 66
- Awards cited
- MA000047
What happened
McCrystal Agricultural Services Pty Ltd, a Queensland labour hire business and sweet potato farm, and its sole director Russell McCrystal, have been penalised for unlawfully deducting pay from migrant employees. The Fair Work Ombudsman investigated the company, which operates under the Pacific Australia Labour Mobility (PALM) scheme. Between 2021 and 2022, the company fined workers under an alcohol policy, deducted health insurance premium payments exceeding the actual cost, and recovered overtime overpayments without employee approval. A total of 66 employees were affected, primarily from Vanuatu.
What was decided
The Federal Circuit and Family Court imposed a $43,000 penalty against McCrystal Agricultural Services Pty Ltd and $5,500 against Russell McCrystal. The penalties relate to breaches of the Fair Work Act, including unlawful deductions for alcohol policy fines and recovering overpayments. The company rectified the underpayments and amended its alcohol policy. The Fair Work Ombudsman emphasised the importance of protecting visa holder workers and ensuring lawful wage deductions. The court found the deductions were not principally for the benefit of the employees and were not lawfully authorised.
What it means for employers
Employers, particularly those utilising labour hire arrangements or employing visa holders, must ensure all wage deductions are lawful and appropriate. Deductions are only permitted in limited circumstances and require careful consideration of the Fair Work Act. Employers should review their policies, such as alcohol policies, to ensure they comply with workplace laws and obtain written authorisation for any deductions.
What it means for employees
Visa holder employees are particularly vulnerable and reliant on their employers. Employees should be aware of their rights regarding wage deductions and seek advice from the Fair Work Ombudsman if they suspect unlawful deductions. The Fair Work Ombudsman provides free advice and assistance to both employees and employers.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2025-media-releases/september-2025/20250919-mccrystal-agricultural-penalty-media-releaseWant more cases like this?
FairWork Mate tracks Fair Work Ombudsman, Fair Work Commission and Federal Court decisions across Australia. The full dataset, with structured fields for awards cited, industry, penalty amounts and affected employee counts, is available through the Business API. FairWork Mate AI answers plain-English questions grounded on the full corpus.
Individual case summaries on this site are free. API + AI access is a paid product. Contact us for pricing or a 50% off first month.
Get notified on new Fair Work cases
Free email alerts when we publish new underpayment decisions, penalty orders, and workplace law updates.
Free forever. No spam. Unsubscribe anytime.
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 →