1. A number of States/Territories have enacted legislation that regulates the labour hire industry and prohibits the use of unlicensed labour hire service providers.
Implications
2. This may have an effect on agencies regardless of their location. Regulatory labour hire legislation extends to any agency that utilises the services of a labour hire provider based in that State/Territory.
3. Agencies must comply with any applicable labour hire legislation.
4. Agencies should be aware that labour hire legislation varies from State to State. Definitions of ‘labour hire service provider’ also vary. Thus, a company’s need for a license may differ depending on the State.
5. Agencies engaging in arrangements with a labour hire service provider should consider the relevant State/Territory’s legislation and seek legal advice where appropriate.
Background
6. Regulatory labour hire legislation penalises unlicensed providers for engaging in labour hire arrangements and penalises employers for utilising the services of unlicensed providers.
7. Currently, regulatory labour hire legislation operates in a number of Australian jurisdictions and is being considered by others.
8. Agencies facing a penalty may be exempted if they have a reasonable excuse for engaging in an arrangement with an unlicensed provider. Agencies should consider the relevant legislation and/or seek legal advice if they believe they have entered into an arrangement with an unlicensed provider.
