In January 2025, a significant case emerged involving a Goulburn Valley fruit-growing company, R J Cornish & Co. Pty Ltd, which signed an Enforceable Undertaking (EU) with the Fair Work Ombudsman (FWO) after making unlawful wage deductions from 112 employees. The company, based in North-East Victoria, grows peaches, pears, apples, lemons, and oranges. Following a nationwide inspection by Fair Work Inspectors, the company was found to have unlawfully deducted nearly $127,000 from employees’ wages between 2017 and 2024. This case serves as a reminder of the critical importance of adhering to Australian workplace laws, especially in the agricultural sector.
The Case: Unlawful Wage Deductions
Between July 2017 and June 2024, R J Cornish made illegal deductions from the wages of its casual fruit picker employees, including workers on working holiday visas. The deductions were made for the hire of power ladders used for fruit-picking, fuel related to these ladders, and even for sprinkler damage, amounting to a total of $126,859. These deductions were deemed unlawful by the FWO because they were not principally for the benefit of the employees, nor were they authorised under the Fair Work Act.
As a result, the company was required to repay most of the unlawfully deducted amounts, with over $123,000 back-paid to the affected workers. This included individual payments ranging from $21 to nearly $10,000, with an average repayment of around $1,132 per employee.
Understanding Unlawful Wage Deductions
Under Australian employment law, deductions from an employee’s wages are only lawful if:
✅ The deduction is principally for the employee’s benefit
✅ The employee has provided written consent
✅ The deduction is required or authorised by law, a court order, or a Fair Work Commission order
In the case of R J Cornish & Co. Pty Ltd, deductions for power ladder hire, fuel, and sprinkler damage were deemed unlawful under the Fair Work Act. The employer has since ceased these deductions and committed to back-paying affected workers. However, this case serves as a warning to businesses across all industries, especially in the agriculture sector, where many employees—often visa holders—may be vulnerable to wage underpayments.
The Risks of Non-Compliance for Employers
Failing to comply with wage laws can result in:
🔴 Significant financial penalties – Courts have issued penalties exceeding $150,000 in recent cases involving unlawful deductions.
🔴 Legal action from the Fair Work Ombudsman – The FWO actively investigates non-compliant businesses and enforces corrective measures.
🔴 Reputational damage – Publicised cases of wage theft can impact customer trust and brand reputation.
🔴 Workforce dissatisfaction and high turnover – Unfair wage practices lead to low employee morale and increased attrition.
Protect Your Business—Ensure Compliance
Don’t wait for an audit or investigation to reveal compliance gaps in your business. Ensuring lawful wage practices is not just about avoiding penalties—it’s about fostering a fair, legally sound, and reputable workplace. Employers should proactively review their payroll practices, employment contracts, and deduction policies to ensure compliance with the Fair Work Act.
If you’re uncertain about wage deductions, employee entitlements, or compliance with employment laws, seeking professional legal guidance can help safeguard your business and workforce.