Accessorial Liability — Who Is Legally Exposed

If you helped, encouraged, advised, or caused someone else to breach workplace law, you are involved. This includes setting up pay arrangements you know are non-compliant.

If you pressured or incentivised a labour hire company to cut corners — whether through threats, promises, or unreasonably low contract rates — you may have induced the breach.

This is the broadest category. If you were in any way, by act or omission, directly or indirectly, knowingly concerned in the contravention, you are involved. This is the provision most commonly used against growers and directors.

If you and another party agreed or arranged for workplace law to be breached, both parties are liable — even if one party never directly employed anyone.

The standard under Section 550 requires proof that you intentionally participated in the contravention and possessed actual knowledge of the essential matters that made up the breach. You don't need to know it was illegal — just that you knew the facts.

Courts can infer knowledge from circumstances. If the contract rate you're paying a labour hire company is so low that it clearly can't cover minimum wages plus on-costs, a court may infer you knew workers would be underpaid.

Deliberately avoiding information — not asking questions, not checking payslips, not verifying licences — does not protect you. If you should have known, and chose not to look, that can be treated as knowledge.

For franchisor and holding company liability, the standard is even broader: you are liable if you "knew or ought reasonably to have known" about the breach AND failed to take reasonable steps to prevent it. This is an objective test.

Piece rates must be set so a competent worker at average productivity earns at least 15% above the minimum hourly rate. Rates set without proper calculation methodology, or rates that are simply too low, are the most common breach.

For each day a pieceworker works, they must be paid at least their hourly rate multiplied by the hours worked that day. Many businesses fail to apply this daily minimum, leaving workers underpaid on slow days.

Since April 2022, employers must record hours worked by all pieceworkers. This was a major change — previously pieceworkers didn't need timesheets. Many businesses still haven't implemented this, and it's a clear, provable breach.

If a grower sets a contract rate that's too low to cover compliant piece rates, or if a director approves piece rate calculations they know are below award minimums, they are personally exposed. The FWO specifically targets the individuals who set up or approve these arrangements.

Before engaging any labour hire provider, check their licence status on the relevant state register (VIC, QLD, SA, ACT). Document this check. Using an unlicensed provider exposes you to penalties of up to $650,000.

If the rate you're paying a labour hire company seems too low to cover minimum wages plus on-costs (super, leave, WorkCover, admin), question it. Unreasonably low rates are a red flag that workers may be underpaid.

Have written contracts with your labour hire providers that require them to comply with all workplace laws, minimum wage obligations, and record-keeping requirements. Include audit rights.

Request payslips, wage records, and time records from your labour hire provider periodically. Random audits demonstrate you are actively monitoring compliance — not turning a blind eye.

Keep records of every compliance check, licence verification, contract, audit, and communication. If the FWO comes knocking, your documentation is your defence. It proves you took reasonable steps.

If you don't have the expertise to verify piece rate calculations, check award compliance, or set up proper documentation systems, get professional help. The cost of compliance support is a fraction of the cost of a single penalty.