How will the labour hire licensing laws in Victoria affect my business and what are the key things I need to know?
Under the Victorian licensing scheme, businesses that meet the definition of a provider of labour hire services will be required to hold a licence. Businesses that use a provider of labour hire services will be required to only use a licensed provider. Strong penalties apply for non-compliance.
A 6-month transitional period will apply for providers and users of labour hire services. Providers of labour hire services have until 29 October 2019 to create an online account and submit their licence application to the Labour Hire Authority for approval. After 29 October 2019 users (or hosts) of labour hire service providers must only use a licensed provider, or a provider that has submitted their application for a licence by 29 October 2019.
The Labour Hire Authority is an independent regulatory body that administers Victoria’s labour hire licensing scheme. The Authority is responsible for promoting compliance with and enforcing the licensing scheme. The Authority, through its inspectors, has broad powers to search, investigate and enter premises to ensure compliance with the scheme.
The labour hire licensing scheme affects businesses beyond traditional labour hire arrangements.
A business is considered a provider of labour hire services under the Victorian legislation if, in the course of conducting a business, the provider supplies one or more workers to another person (a host) to perform work in and as part of a business or undertaking of the host.
The Labour Hire Licensing Regulations 2018 (Vic) provide a list of limited exclusions for persons who are not considered a “Worker” for the purpose of the licensing scheme’s coverage.
A provider of labour hire services who supplies an individual who is not considered a worker by the Regulations will not be required to hold a licence for the supply of that individual.
License applications can be made through the Labour Hire Authority website. Applicants will need to create an online account.
The Labour Hire Authority has outlined the information that will need to be provided with a licence application. The Authority will conduct a ‘fit and proper person’ test for each application and ask applicants to make declarations in respect of compliance with relevant laws.
The maximum licence term under the legislation is 3 years.
Businesses will be required to only use licensed labour hire service providers. Users of labour hire services will be able to find out whether the provider they plan to use is licensed by checking the online Register of Licensed Labour Hire Providers on the Labour Hire Authority website.
Users will also be able to find out whether the provider that they plan to use has applied to be licensed, by checking the separate online list of ‘Applications received’ on the Labour Hire Authority website.
The Labour Hire Licensing Act 2018 (Vic) gives the Labour Hire Authority discretion to waive certain requirements on licence holders to provide information to the Authority if holders hold a labour hire licence in another State.
The Labour Hire Licensing Act 2018 (Vic) includes penalties of up to $515,808 for companies and $128,952 for individuals.
These penalties may increase on 1 July each year. The penalties apply to those who provide “labour hire services” without a licence and to those who use an unlicensed labour hire provider.
The penalties also apply to persons who enter into an arrangement to avoid obligations under the legislation. There are a range of other offences under the Act attracting financial penalties, including a prohibition on advertising for the provision of labour hire services without a licence.
Ai Group members are encouraged to contact the Workplace Advice Line for further information about labour hire licensing on 1300 55 66 77.
