Council chief executive Kris Newton said she was "very aware'' there were people working illegally in Gippsland.

"Unfortunately it's something that's happening all over the country,'' she said.

Ms Newton said farmers often assumed that because workers were supplied by a labour hire organisation, they were legally allowed to work in Australia.

"But I also think there are some who turn their eyes and don't want to know about it,'' she said.

"I've had discussions with farmers who are in great distress because they've hired people for the correct amount but that has not been translating through to the workers.

"So someone is ripping them off.''

Ms Newton said while there were some "excellent'' labour hire organisations, there was also some "cowboys''.

"I think this is something that needs to be worked on collectively by growers, by us, the government and the industry ombudsman,'' she said.

"There needs to be a concerted effort to stop this.''

According to Ms Newton, farmers could stop the proliferation of illegal workers in Gippsland by taking part in the Pacific Seasonal Workers' Pilot Scheme.

She said the scheme, a Federal Government initiative, involved seasonal workers being recruited from countries in the Pacific to legally fill the gaps in the horticulture industry.

"In our view, sensible and progressive growers would be seizing the opportunity to work with a legitimate company,'' she said.

"The pilot scheme works very closely with the sending government to recruit the appropriate people and make sure they receive training.

"I know there are desperate labour shortages at peak picking seasons which makes it tempting for farmers not to ask the critical questions.

"But they are obligated to ensure workers are legal and that they are being paid correctly.''