Do You Need a Labour Hire Licence?
Most Australian states have introduced legislation to control firms who provide labour hire workers. This has come about because of a long history of labour hire firms:
Under-paying workers, providing poor safety conditions, unhealthy accommodation eg itinerant workers, inadequate training; and
Breaching laws eg workplace safety, employment, migration, tax, long service leave, and other laws.
Who are Labour Hire Firms?
Labour hire firms are businesses who:
Provide one or more workers to a host to perform work; and
The work is part of the host’s business; and
The provider (labor hire firm) pays the individual for performance of that work.
For example, firms who provide; nurses to hospitals, labour for construction sites, commercial office cleaners, farm workers, waiters and chefs for catering businesses, drivers for transport businesses.
Legislative Requirements
Whilst the legislation in each state varies, they typically include:
Firms who provide labour hire workers must hold a licence eg Vic Labour Hire Licensing Act 2018.
A labour hire licence is required even if you supply one labour hire worker.
To obtain a licence labour hire firms need to satisfy several criteria including:
Fit and proper person test eg no criminal convictions or serious breaches of the law, or insolvency.
Director(s) declaration eg directors to sign-off on compliance with all employment, tax, workplace safety and related laws.
Taxation registration.
List any industrial agreements that may be applicable.
Migration and visas, if applicable.
Whether they provide accommodation for workers eg mining or farms.
Whether they provide transport for workers eg mining or farms.
Pay an annual licence fee.
Be subject to inspections and audits from the Labour Hire Authority.
4. Labour Hire Authorities can suspend or withhold a licence for any serious breach of any of the conditions of the licence.
Call us on 03 8544 4300 or email for a quote to review your contractor safety and compliance.
