Labour Hire Authority

Labour Hire Licensing Laws Australia

Under the labour hire licensing laws, labour hire workers are protected from exploitation and ensured worker rights and adequate workplace health and safety practices. The labour hire licensing scheme is enacted in Victoria, Queensland And South Australia.

What is the Labour Hire Authority?

To prevent exploitation and abuse of labour hire workers, Labour Hire Licensing Act was introduced in 2018. It aims to protect workers employed in all the industry sectors. 

Labour Hire Authority is responsible for implementing the LHL Act in Victoria.

Key elements of the Labour Hire Licensing Scheme

  1. Labour hire providers must be licensed. 
  2. The hosts must engage only licensed providers. Any business that employs labour hire providers to conduct their work is classified as a host.
  3. Labour hire providers need to report annually on their activities. 

The host employers need to ensure the labour hire provider is licensed or has applied for the license before 30 October 2019 and not been rejected.

Due to these unprecedented times, the authority won't take any action against a provider if they have submitted the application before midnight 30 June 2020 and don't have any evidence of non-compliance.

The providers which do not have a license can face fines up to $120,000 (individual) or $500,000 (corporation).

Benefits of the Labour Hire Licensing Scheme

  1. Increased transparency and integrity in all industry sectors like horticulture, meat, cleaning etc.
  2. Protection of workers from abuse and exploitation.
  3. Protects employers from engaging in illegal business with labour hire providers. 

Labour Hire Providers

According to the Labour Hire Authority Victoria, “labour hire providers are individuals or organisations that have an arrangement with one or more individuals under which the business":

  1. Supplies individuals to perform work as a part of their business and the provider pays the individual for the work.
  2. Recruits or places individuals with a host who pays them to “perform work in and as part of the business’s undertaking”
  3. Recruits individuals as independent contractors to “perform work in and as part of the business’s undertaking” and manages the contract performance.

Labour Hire Workers

Labour Hire workers are employees of the labour hire providers and supplied to businesses (or hosts) on a casual, part-time or full-time basis. 

  • the individual can be an independent contractor supplied to a host wherein the provider manages the payroll of the contractor.
  • If the individual supplied to the host is paid by the host and the provider procures accommodation for the person. 

Who needs a labour-hire license in Victoria?

All labour hire providers need to be licensed under the Labour Hire Licensing Act 2018. Q Labour Solutions is a licensed labour hire provider.

Click here to see if you are using a labour hire provider.

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