If you supply a worker or workers to work for another business or person, you could be operating as a labour hire provider. What may have been traditionally viewed as a “supply of services” arrangement may now be caught as a supply of labour.
New laws which come into force on 30 October 2019 state that all labour hire providers need to be licenced. This involves paying an application fee, annual licence fee and a renewal fee once the current licence expires. You will also have to satisfy a “fit and proper” person assessment and declare that, to your knowledge you are compliant with laws including taxation and superannuation laws.
So What Is A Labour Hire Provider?
A Labour Hire Provider is someone or a business who supplies workers to a “host business”. Factors that could suggest that a business is a labour hire provider include that the work is being performed at the host premises and the workers are supervised by the host. There are more examples that are relevant and can be found at https://labourhireauthority.vic.gov.au/provider/general-definition-of-labour-hire-services/
Some business category examples could include:
– Security company supplying workers to various businesses
– Hospitality staffing agency
– Cleaning Businesses
– Supplier of trade/construction workers to a Builder/Developer
Ultimately if you are unsure about whether you fall under the labour hire provisions, you will need to seek independent legal advice and act quickly.
How Do I Obtain A Licence?
You will need to go to the Labour Hire Authority Government website and create an account and fill out an application, make the relevant declarations and pay the application and licence fees: https://labourhireauthority.vic.gov.au/
What Happens If I Do Not Obtain A Licence?
If you do not apply for a licence by 29 October 2019, you will be prohibited from providing labour hire services from 30 October 2019. This means you need to get your application in by 29 October 2019!
There are also substantial fines for failing to become licenced – more than $120,000 for an individual and $500,000 for a corporation.
What About Those Who Source Workers From An Unlicenced Labour Hire Provider?
If you source workers from a labour hire provider who has not applied for, or who has been refused a labour hire licence, you could face substantial fines – more than $120,000 for an individual and $500,000 for a corporation.
Further information can also be obtained at: https://labourhireauthority.vic.gov.au/
Please contact us on 03 8419 9800 if you would like assistance in finding a lawyer to advise you on whether this applies to you.
Any advice is of a general nature only and does not take into account the objectives, financial situation or need of any particular person. Therefore, before making any decision, you should consider your particular circumstances and read any relevant disclosure documents to see if any products or services is right for you or your client. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.
