Labour Hire Licensing in South Australia

Consumer and Business Services (‘CBS’) has yesterday released an announcement advising that it will recommence accepting labour hire licence applications from 14 June 2019.

Labour hire providers in South Australia must lodge their licence application by 31 August 2019.

The announcement follows unsuccessful attempts by the State Government to repeal the Labour Hire Licensing Act 2017 (SA) (‘LHL Act’) in its entirety.

Coinciding with CBS’ announcement, the Commissioner for Consumer Affairs, Dini Soulio, issued further exemptions from the requirement to be licensed. An exemption from the requirement to be licensed under s 11 of the Act has been granted to the following persons:

1. A person who provides labour hire services where the provision of such services is not a core function of the person’s business or undertaking.
2. A person (“the provider”) who provides a worker to do work within the business or undertaking of:
   1. 2.1. a body corporate that is related to the provider under section 50 of the Corporations Act 2001 of the Commonwealth; or
   2. 2.2. a franchisee of a franchise of which the provider is also a franchisee; or
   3. 2.3. another person that carries on business collectively with the provider under one recognisable business.

Further, an exemption from the operation of s 12 of the Act (which prohibits persons from entering into arrangements with unlicensed providers) was granted to any person who enters into an arrangement for the provision of labour hire services with any of the persons listed above.

What does this mean for employers?

Employers should consider the new exemptions issued by the Commissioner, and consider whether or not they are required to apply for a licence.

We recommend that Employers keep updated by accessing https://www.cbs.sa.gov.au/campaigns/labour-hire-laws.

Please seek specific advice as is appropriate to your business.