On 16th April 2018, The QLD Labour Hire Licensing Act 2017 will commence, with a 60 day period for existing labour hire service businesses to apply for a license.
If your business provides labour hire services under the legislation - i.e. if in the course of carrying on a business, they supply a worker to another person to do work, then it is likely that you will need to understand and comply with your obligations under the new legislation.
The legislation has been passed to protect workers from unscrupulous practices that have been identified during regulatory inquiries.
Some points to note:
Providing labour hire services without a license will carry a maximum penalty of up to $365,700.00 (for a corporation) and $126,045 or imprisonment of up to 3 years for an individual.
Entering into a labour hire agreement with an unlicensed labour hire provider will carry a maximum penalty of up to $365, 700.00 (for a corporation).
So what do i need to do?
Those businesses that are within the boundaries of the legislation will need to:
- Apply for a license within 60 days of the legislation coming into effect (April 16th)
- Pay a license fee, provide evidence of 'financial viability' and pass the 'fit and proper person' test
- Ensure that they are meeting their obligations under relevant legislation including the QLD WHS Act/Regulation (2011) and Fair Work Act (2009).
- Provide an online report every 6 months including what workers your business has provided, compliance with the above legislation and details of any health and safety incidents and workers compensation claims.
Businesses wishing to engage with a labour hire provider will be able to check that the provider is licensed using an available online register (and will be expected to do so).
The above are just some of the points that are raised by the introduction of this legislation. It will have a bigger initial impact on smaller businesses and it is clear that larger businesses will have a head start on providing the assurances required to comply with the legislation. As things progress it should simply become an everyday way of doing business and will hopefully reduce the rate of injuries and poor working conditions currently endured by some labour hire contractors at work.
Peoplesafe Consulting is a Management Consultancy assisting businesses Australia-wide with Managament systems, WHS advice and Human Capital consulting. To discuss what you can do to ensure that you are complying with the applicable legislation, contact us for an initial discussion on email@example.com or phone on 1300 155 605.