New Victorian labour hire licensing requirements come in to effect from the 30 October 2019 with major penalties in place for those that don't comply. This will not just impact on those that operate a labour hire business but those that utilise labour hire services.
Who is a labour hire provider?
A labour hire provider is a business that has an arrangement with one or more individuals under which the business supplies the individuals to perform work in and as part of a host's business or undertaking and the provider is obliged to pay the individual for performance of the work.
Industries where the supply of workers is taken to be labour hire
Under the Labour Hire Licensing Regulations 2018 (Vic), there are some circumstances in which an individual is taken to 'perform work in and as part of a business or undertaking' and will likely require a licence. Broadly speaking these are;
- as a cleaner in a commercial premises
- in the horticulture industry, performing certain activities
- in a meat manufacturing or processing establishment, performing certain activities; or
- poultry processing establishment, performing certain activities.
Excluded classes of workers
Under the Labour Hire Licensing Regulations 2018 (Vic), there are some circumstances in which an individual is not considered to be a worker and will most likely not require a licence. These categories include;
- Providing workers with a group
- Small body corporate providing a director
- Public sector employees
- Vocational placements
What are the obligations of a labour hire host?
Hosts must only use licensed labour hire providers or providers that have applied for a licence before 30 October 2019 and the application has not been refused. Before engaging a labour hire provider, hosts can find the lists of licence applications, provisionally granted licences and granted licences through the links below;
- Labour hire application public register
Hosts are to be reminded that under Victorian occupational health and safety laws, they are responsible for providing and maintaining a safe work environment at their workplace for all workers which includes labour hire workers.
Penalties for being unlicensed
A maximum penalty for a natural person being in excess of $120,000 for a natural person and for a corporation exceeding $500,000. This applies to both the Provider and the Host.
This information is general in nature and does not constitute legal advice. You should consider your particular circumstances when determining how these licensing requirements impact your business. Further information can be found by visiting Labour Hire Authority or if you are unsure you should seek legal advice.