In 2018 the Labour Hire Licensing Act 2018 (Vic) set out some new laws relating to labour hire providers and their licensing requirements. Ultimately, the transition period was six months from 29 April 2019. The providers that did not go through with the transition will be facing heavy fines. These fines can exceed $120,000 for an individual and $500,000 for a corporation. This article will explain the steps necessary for labour hire providers to gain a licence.
What is a labour hire provider?
Under section 7 of the LHL Act a labour hire provider supplies individuals to work within a business and they have an obligation to pay the workers. Further, under section 8(1) this also applies if the provider only recruit individuals to work within a business, which pay the individuals themselves.
Section 8 (2) LHL Act: A labour hire provider can be a contractor management service where they recruit individuals as independent contractors. Further, the labour hire provider under this section can also be undertaking and managing the contract performance of independent contractors.
What is required in the application?
The ‘fit and proper’ person test will not be met if you’re found to be guilty for 10 years of an indictable offence against a person. It also includes offences involving fraud, dishonesty or a drug trafficking offence that accompany a minimum of 3 months of imprisonment.
Some other contravention of laws that you should disclose include:
- Workplace law
- Labour hire industry law
- breach of minimum accommodation standard for 5 years
You should also provide information regarding whether you have an application that has been insolvent or under external administration for 5 years. The LHA page provides a list of other requirements that need to be met.
Application
The licence application requires an extensive list of information. Firstly, the application requires the number of workers supplied within the 12 month period before the date of the application. In addition to this, it’ll also require the types and number of visas held by workers.
Secondly, it’s also important to include the terms and conditions of employment of those workers. It’s also important to note whether the labour hire provider is registered with the Australian Taxation Office and WorkSafe Victoria
You will also need to provide the number of workers the provider expects to supply to the business in the next 12 months
There is also a separate licence fee that you need to provide. However, you cannot ask for a refund if the application is unsuccessful. You will also need to provide a number of other details. We recommend that you should seek further advice from a business lawyer.
Consequences for breaches
An example is:
If provider X, a corporation, is providing labour hire without a licence, it will result in a fine of more than $500, 000.
The individuals or corporations that do not follow these regulations will be facing heavy penalties. On another note, if the provider is a corporation that is advertising their service without a license they will be facing a penalty of more than $120 000.
If there has been an refusal or cancellation of an application the provider may have to wait between 3 months to 2 years before re applying.
Conclusion
Ultimately, a labour hire provider can be an individual or corporation that provides the supply of workers to another business. Further, a labour hire provider have to meet a number of legal requirements before becoming one.
