Victorian Labour Hire Licensing – What you need to know as a Host Employer

There have been a number of developments relating to the labour hire licensing schemes in Victoria. On 23 October 2018, the Victorian Government introduced the Labour Hire Licensing Act 2018 (Vic) to support the operation of the Victorian labour hire licensing scheme.

Recently, the Victorian Government announced that the remaining provisions of the Labour Hire Licensing Act 2018 (Vic) will take effect on 29 April 2019. These provisions relate to licensing obligations on providers of labour hire services and users of labour hire services.

What does this mean?

Under the Victorian licensing scheme, businesses that meet the definition of a provider of labour hire services will be required to hold a licence and this scheme affects businesses beyond traditional labour hire arrangements.

A business is considered a provider of labour hire services under the Victorian legislation if, in the course of conducting a business, the provider supplies one or more workers to another person (a host) to perform work in and as part of a business or undertaking of the host.

Other circumstances where a business may be required to hold a licence as a labour hire provider:

• businesses that, in the course of providing recruitment and placement services, procure or provide accommodation for workers for all or some of the period during which workers perform work; and

• businesses that, in the course of providing contractor management services, recruit or place one or more workers with a host.

What are your obligations as a host employer?

The main obligation on hosts under the Act is to use only licensed labour hire providers to obtain the services of labour hire workers.

Once the scheme commences, before engaging a labour hire provider, hosts will be able to find out whether the provider they plan to use is licensed or has applied for a license by checking the online Register of Licensed Labour Hire Providers at https://labourhireauthority.vic.gov.au.

Hosts can be assured that licensed providers have been assessed in relation to their compliance with a range of relevant State and Commonwealth laws and whether they are a fit and proper person to hold a labour hire licence.

However, hosts are 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.

A 6-month transitional period will apply for providers and users of labour hire services, where providers of labour hire services have until 29 October 2019 to submit their licence application to the Labour Hire Authority for approval.

Penalties for non-compliance

Hosts will be prohibited from using an unlicensed labour hire provider, and hosts doing so will be exposed to significant fines, with a maximum penalty exceeding $500,000.  There are also significant penalties for hosts who seek to enter arrangements with suppliers aimed at avoiding or circumventing obligations that would otherwise be imposed by the Labour Hire Licensing Act 2018.  Avoidance arrangements must be reported to the Labour Hire Authority.

What is the role of the Labour Hire Licensing Authority?

The Labour Hire Authority is an independent regulatory body that administers Victoria’s labour hire licensing scheme. The Authority will have a team of inspectors who will promote compliance with, and enforce, the licensing system.  Inspectors will have a variety of powers to monitor compliance with the scheme including, where there are reasonable grounds, the authority to:

• enter and search premises
• examine and seize anything suspected of being connected with a possible contravention
• inspect, copy or take extracts from documents on the premises and make images or recordings
• seek the assistance of other persons
• where necessary apply to the Magistrates’ Court for a search warrant.

Hosts who use labour hire services may be investigated as part of monitoring compliance with the licensing scheme, and with written notice, may be required to produce documents.

What should I do?

In the leadup to the commencement of these new regulations on 29^th April, it is recommended that you:

• Review your labour hire providers
• Have conversations with your current and prospective labour hire providers about whether they have obtained a licence or whether they intend to.
• Check their licence status on the portal
• Review whether your business requires a labour hire licence under the definition of labour hire.

Have you got questions about this article or about staffing needs? Phone us at Blaze Staffing Solutions on 1300 008 005 to speak with one of our recruitment specialists or email us at info@blazestaffing.com.au.