New Labour Hire Licensing Laws

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. Both the labour provider and the host client face huge penalties if they fail to comply with the 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.

Are you unsure whether employers consider you a ‘labour hire provider’? You should read about the types of labour hire providers below. Also, you can speak to a trusted adviser such as a lawyer or accountant to make sure you’re complying.

Who is a labour hire provider?

A labour hire provider runs a business that supplies individuals to perform work within a host’s business or undertaking and must pay those individuals for their 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: