Labour Hire Licensing Act 2017

LG Leader March 2018

The Labour Hire  Licensing Act 2017 (“the Act”) commenced on 1 March 2018. The Act establishes a mandatory labour hire licensing scheme, with the aim of protecting labour hire workers and safeguarding those labour hire providers that are ethical and responsible.

For the purposes of the Act, a person provides “labour hire service” if, in the course of conducting a business, the person supplies, to another person, a worker to do work in and as part of a business or commercial undertaking of another person.

Under Section 11 of the Act, a person must not provide labour hire services except as authorised by a licence under the Act, nor must they advertise or in any way hold themselves out as providing, being entitled to provide or be willing to provide labour hire services unless licensed. Criminal offences and penalties are tied to a breach of these provisions.

For Councils, the key point is that, under Section 12 of the Act, a person must not, without reasonable excuse, enter into an arrangement with another person for the provision of labour hire services to the person unless the other person is authorised to provide labour hire services by a licence under the Act. Again, criminal offences and penalties apply to a breach of this section.

Labour hire firms will have a grace period of six months to obtain a licence. Licensing will be regulated by the Commissioner of Consumer Affairs, and applicants will need to satisfy a fit and proper person test, and provide regular reports on their labour hire activities and compliance with relevant laws.

As penalties are significant, Councils need to ensure in seeking labour hire that they deal only with licensed operators, and if unsure, check the public register which will be made available.