Be aware of the new Victorian labour hire laws
ATTENTION ALL LABOUR HIRE PROVIDERS & RECRUITMENT SPECIALISTS:
The Victorian Government has introduced new licensing legislation that will be effective from 30 October 2019. There are huge penalties involved for both the provider of labour and the host client if they don’t comply with these new labour hire laws.
Who needs to be licensed:
Under the LHL Act (Labour Hire Licensing Act), all labour hire providers must have applied for or hold a labour hire licence to operate legally in Victoria from 30 October 2019.
If you supply workers to another business or person, you could be operating as a labour hire provider and will need to apply for a licence.
If you are unsure whether you are considered a “labour hire provider”, you should read about the types of labour hire providers below and speak to a trusted advisor such as a lawyer or accountant to make sure you’re complying.
Who is a labour hire provider?
A labour hire provider is a business that has an arrangement with one or more individuals under which the business supplies the individuals to perform work in and as part of a host’s business or undertaking and the provider is obliged to pay the individual for performance of the work.
General definition of labour hire services according to the LHL Act:
- In the course of providing recruitment or placement services, recruits individuals for, or places the individuals with a host who has to pay the individuals to perform work in and as part of the host’s business or undertaking and the provider procures or provides accommodation for the individuals for some or all of the period that they are working with the host.
Extended definition of labour hire services relating to recruitment and placement services:
- In the course of conducting contractor management services recruits the individuals as independent contractors to perform work in and as part of a host’s business or undertaking and manages the contract performance by the independent contractors.
Extended definition of labour hire services relating to contractor management services:
- Industries where the supply of workers is taken to be labour hire.
We recommend you speak to a Trusted Advisor to make sure you’re meeting your obligations!