Seasonal pickers must be paid minimum wage from April: Fair Work Commission

The verdict, which had been under consideration since November, means workers under the Horticulture Award must be paid $25.41 an hour - the minimum wage, plus 25 per cent for casual work loading.

Workers can still be paid a piece rate, which must allow for workers to earn the equivalent of at least 15 per cent above the casual rate. Employers will be required to record the hours worked by the piece worker, along with the rate applied to the hours worked.

The agriculture industry argued against the changes, stating minimum wage floor rate would damage productivity by taking away the incentive to work hard and leaving many employers unable to pay hourly rates for unproductive works, or burdened with extra administration and supervision requirements.

However, the FWC was not swayed by the more than 20 submissions from agricultural businesses and organisations, finding the "assertions [to be] speculative and unsupported by any evidence".

The Commission slammed one of the horticulture businesses for its submission, which "demonstrates a lack of awareness of the existing award obligations" and "flies in the face of its contention that large employers comply with their award obligations and do not 'cut corners'".

The FWC said there was "widespread underpayment" of pieceworkers in the horticulture industry and "a significant proportion" of pieceworkers earnt less than the national minimum wage. The proposed variation will assist in rectifying this situation.

"Ultimately a balance needs to be struck between the interests of employers and the interests of employees," the FWC stated.

"The introduction of a minimum wage floor will increase compliance by providing an easily calculated minimum payment. The proposed variation is simple and easy to understand."

Australian Workers Union national secretary Daniel Walton said the ruling, which would come into force on April 28, would give fruit pickers some certainty about how much they should be legally paid.

"For too long the farmers' lobby has seen fruit pickers as somehow beneath the usual standards offered to Australian workers, but the hard work of pickers deserves the same minimum wage dignity afforded to everyone else," Mr Walton said.

"Fruit pickers - who often have limited English and information about Australian laws - will now find it easy to assess if they are being ripped off by their employer.

"Now at the end of each day every picker should be assured that their work netted at least $25.41 an hour. If not, their employer is stealing from them and breaking the law."

National Farmers' Federation chief executive, Tony Mahar, who argued against minimum wage floor rate, said now the ruling had been made, it was important growers prepared their businesses for the changes.

"We encourage growers to seek advice from the Fair Work Ombudsman, an accountant or another appropriate professional service if they need assistance to ensure they are implementing the changes correctly," Mr Mahar said.

Love agricultural news? Sign up to our free daily newsletter and start your day with all the latest in ag.