Labour Hire Licensing Laws Passed in Victoria

The Victorian Legislative Council has passed the Labour Hire Licensing Bill 2017, joining the ranks of Queensland and South Australia which introduced their labour hire licensing laws in 2017 and 2018 respectively. The Victorian Bill will now go to the Governor for royal assent.

The Victorian scheme is broadly similar to the Queensland and South Australian schemes already in place with the following key aspects reflected in all three jurisdictions:

• providers of labour hire services will be required to hold a license;
• businesses will be required to use only licensed providers;
• to obtain a license providers will be required to pass ‘a fit and proper person test’ and show compliance with workplace laws, labour hire laws and minimum accommodation standards;
• licensed providers will be listed on a public register; and
• rogue operators will be liable for civil and criminal penalties.

Businesses will be able to apply for a license from next year.

What do employers need to know?

 Those operating businesses in Victoria who utilise labour hire should:

• keep posted as to the commencement of the Act once royal assent has been received;
• review all current service provision contracts based in Victoria;
• make an assessment of the requirements to be met by the business;
• be aware that the penalties for breach will be at the higher end of the scale;
• be aware that employers who supply labour hire services will be subjected to stringent reporting requirements and annual fees;
• seek advice on complicated matters.

Timely reminder

The passing of the Victoria labour hire licensing laws comes on the back of the recent announcement by Consumer and Business Services in South Australia which advised that licensing requirements will not be enforced before 1 February 2019 as a result of various stakeholders raising submissions in response to the legislation and its scope.

Employers are reminded to ‘watch this space’ and seek advice as is appropriate to the business.