Fast facts on the new labour hire licensing scheme in Queensland
A new mandatory labour hire licensing scheme has been introduced into Queensland by the Labour Hire Licensing Act 2017 (Qld). The scheme came into effect on 16 April 2018 and provides existing labour hire providers operating in Queensland until 15 June 2018 to apply for any requisite labour hire licence.
If your business provides, or uses, labour hire services in Queensland, you should ensure you are familiar with the new scheme to ensure your business does not fall foul of any licensing requirements.
- Labour hire providers – Labour hire providers operating in Queensland are required to be licensed.
- Labour hire users – Regardless of the State in which the user is registered, users of labour hire services in Queensland are required to conduct appropriate due diligence (requesting evidence from the labour provider or using the new labour hire register) to ensure that they only engage a licensed labour hire provider.
- Penalties – There will be hefty penalties for contravention of the Act by both labour hire providers and labour hire users, the maximum penalty being $378,450. Some offenders may also be liable for criminal prosecution.
- One-year licences – Licences will need to be renewed on an annual basis and will attract an annual licence fee.
- Fit and proper person – Labour hire licencees are required to satisfy a fit and proper person test to establish that they are capable of providing labour hire services in compliance with all relevant laws.
- Financial viability – Only businesses that are considered to be financially viable will be eligible for a labour hire licence.
- Licence conditions – Conditions may be imposed on labour hire service providers such as the requirement to hold insurance, lodgement of security and inspection of premises at regular intervals.
- Ongoing reporting – Licence holders will have ongoing bi-annual reporting requirements from the date their licence is granted.
- Labour hire register – A free online labour hire register will be established and will include details of all licence information.
- Compliance – A labour hire licensing compliance unit will be established with a field services inspectorate responsible for awareness, monitoring and enforcement actions.
Who is caught?
The scheme is intended to cover the labour hire industry. It does not apply to genuine subcontracting arrangements or recruitment and permanent employee placement services. The Labour Hire Licensing Regulation also excludes unintended classes of workers such as genuine secondments, high income workers, in-house employees who are temporarily supplied to another person, and employees working for an employing entity used wholly within a single recognised business.
If you are unsure whether your business will come within the ambit of the new labour hire licensing scheme, contact Mark Winn, Partner, on (07) 3132 8748 for further discusssion.
This information is intended to provide a general summary only and should not be relied on as a substitute for legal advice.