FARMERS will have to pay seasonal workers on a piece rate a minimum wage floor rate from April, following a ruling by the 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"...

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