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Friday, 08 June 2018 09:20 Written by

 

Labour Hire Licensing - are you affected?

 

After 15 June 2018 in Queensland, if you engage a labour hire provider, or if you provide labour hire, you will need to operate within the new licensing scheme.

You will need to review your arrangements and determine whether you, or the providers you use, are required to register as a labour hire provider. 

Strong penalties apply to BOTH parties, the users of unregistered labour hire, as well as the unregistered provider of labour hire.

If you engage or provide employees in other states, you need to keep abreast of the legislation as these states are reviewing their licensing schemes.

 

What is Labour Hire?

 

Unlike other legislation, the definition of labour hire is quite broad. For the purpose of labour hire licensing, it is defined as:

A person (a provider) provides labour hire services if, in the course of carrying on a business, the person supplies, to another person, a worker to do work.

The scheme is intended to cover arrangements such as:

  • a contractor who supplies workers to a farmer or fruit grower to pick produce for the farmer or grower
  • a group training organisation or principal employer organisation that supplies an apprentice or trainee to a host employer
  • an employment agency that on-hires temporary administration staff to a business

However, any arrangements that result in workers doing work for you, that you do not directly employ, could be covered. A list of examples that may assist are on the government website labourhire.qld.gov.au.

There are some exceptions, which can include high-income employees (over $142k per annum), internal servicing entities where there is a single recognisable business, and secondments.

If you employ staff in one entity and you use them in another one of your entities – you can still be caught.

 

What do I do if I use Labour Hire?

 

For any arrangements where you engage a labour hire provider, you can check their registration on either the Pending Applications List or the Register of Labour Hire Licences.

If you continue to use a labour hire provider whose application has been refused you may be penalised for using an unlicensed provider.

 

What do I do if I provide Labour Hire?

 

If you have determined that you do provide a labour hire service, you will need to apply for a license which must be renewed annually. The license fees are currently:

 

Total amount of wages paid in the financial year preceding the day the application is made

Tier Licence fee as at 1 July 2017
$1.5 million or less 1 $1,000
$1.5 million andup to $5 million 2 $3,000
Over $5 million 3 $5,000

 

You will need to supply details of the services you provide and industries you work with. Details of all applicants, executive officers, and determinations if they are fit and proper to hold a labour hire license. You will also need to demonstrate the financial viability of the business, and compliance with laws, regulations, and workplace health and safety.

Additionally, on an ongoing basis you will need to report on the number of workers supplied to other businesses, the visas held by any workers, the locations workers have been supplied, details of any accommodation provided, and any other services provided and fees charged (e.g. transportation), and notify any other events with regulatory bodies or workplace safety incidents.

 

Need more information?

 

If you would like to discuss what impact Labour Hire Licensing will have on your business, or require assistance with obtaining a license, please contact your Marsh & Partners advisor.

 

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