Industry condemns labour hire company that misled inspectors on farm

The operators of a defunct labor hire company have been ordered to pay over $180,000 in fines for deliberately misleading workplace inspectors and breaching labor laws. Korserv Pty Ltd was fined $150,240, and its former manager, Janghwan Choi, received a $30,048 penalty from the Federal Circuit and Family Court on August 13.

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the production of the false and misleading documents was 'egregious flouting' of workplace laws.

The court heard that both Korserv and Choi admitted to providing false and misleading documents to a Fair Work inspector in late 2023 and early 2024. The audit concerned pay rates for 14 farm workers, including several visa holders, at a Glass House Mountains farm. Korserv, which is no longer operating, had subcontracted two other companies responsible for worker payments.

Judge Gregory Egan described the submission of fabricated documents as an "egregious flouting" of workplace laws, stating the intention was clearly to mislead the inspector. He emphasized that penalties must deter similar future conduct by others.

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The intention on the part of the respondents was to mislead the inspector.

Adrian Schultz, president of the Queensland Strawberry Growers Association, welcomed the fines but argued they were too lenient. "It's a very small percentage of people who are taking advantage of these workers and I don't think the penalty is enough," Schultz said, advocating for harsher punishments.

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Penalties ought to be imposed which will generally deter any future conduct of a similar nature by others.

Fair Work Ombudsman Anna Booth stated her office is prioritizing the removal of such behavior from the agriculture sector. She highlighted that breaches involving visa-holder workers are treated with particular seriousness due to their potential vulnerability and reliance on employers.

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It's a very small percentage of people who are taking advantage of these workers and I don't think the penalty is enough.