The use of this service has grown significantly in recent years, with many companies relying on them to meet their staffing needs. However, with their sudden ‘popularity’ came concerns about the exploitation of workers, which prompted the introduction of the Labour Hire Licensing Act 2017.

That said, we will take a deep dive into the labour hire licensing in Australia and its main components.

The Labour Hire Licensing Act 2017

The Labour Hire Licensing Act 2017 was introduced in response to concerns about the exploitation of workers in the labour hire industry. The Act requires providers to be licensed, with penalties for those who operate without a permit. The aim of the Act is to ensure that providers are meeting their obligations under workplace laws and that workers are not being exploited.

Under the Act, they are required to apply for a licence in each state or territory where they operate.The process involves providing information about the business, its owners and directors, and any relevant employees. The labour hire provider must also demonstrate that they are compliant with workplace laws, including payment of wages, superannuation, and workers’ compensation.

Once a licence is granted, they need to adhere to various obligations, including providing information to the labour hire regulator, keeping accurate records, and notifying the regulator of any changes to their business or operations.

What Is Not a Labour Hire Service?

It is important to note that not all employment arrangements are considered labour hire services under the Act. The Act specifically defines labour hire services as the provision of workers to another person in order to perform work. However, it does not include arrangements where:

• The worker is an employee of the business to which they are supplied.
• The worker is employed on a permanent basis by the labour hire provider and is supplied to a business on a temporary basis to perform work.
• The worker is a contractor, and the arrangement is not one of employment.

When Is a Licence Required?

Labour hire providers are required to be licensed in each state or territory where they operate. The requirement to be licensed applies to all providers, regardless of the size of their venture or the number of workers they supply.

If a labour hire provider operates without a permit, they may be subject to penalties, including fines and imprisonment. Similarly, businesses that engage with unlicensed entities may also be subject to liabilities.

It is important to note that the Labour Hire Licensing Act 2017 does not apply to businesses that only supply workers within their own organisation. For example, a business that hires employees to work in its own offices or factories would not be considered a labour hire provider and would not be required to hold a licence.

Conclusion

Indeed, the Labour Hire Licensing Act 2017 is an important piece of legislation that aims to protect workers from exploitation in the labour industry. It requires all providers to be licensed in each state or territory where they operate and imposes obligations on them to comply with workplace laws.

By working together, businesses, workers, and labour hire providers can help to create a fair and equitable labour hire industry in Australia.

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