5 need to know points for your business from the Labour Hire Licensing Act

If you engage labour hire services in Queensland, you need to know about the Labour Hire Licensing Act, which makes it compulsory for providers to be licensed.

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Engaging labour hire services in Queensland? You may need to change the way you hire labour due to the Labour Hire Licensing Act 2017.

Intended to protect labour hire workers from exploitation, as well as promote the integrity of the industry, the Act makes it compulsory for all labour hire providers to obtain a licence from the Queensland government. Those using labour hire services must ensure their providers are compliant. Here’s everything you need to know about the new regulations.

1) All labour hire providers must be licensed

As of 16 April 2018, all labour hire providers must have a license to operate in Queensland. They can only obtain this license if:

  • The business is financially viable. This is to stop illegal phoenixing activity which is damaging the labour hire industry’s reputation.
  • The business has a strong safety record.
  • The people in the business satisfy a fit and proper person test – essentially, they are sufficiently qualified, are compliant with other laws (especially the Fair Work Act), and have strong corporate governance.

As part of the Act, licensees must provide reports every six months on labour hire and associated activities.

The main purpose of Queensland's Labour HIre Act is to protect labour workers from exploitation, as well as promote integrity in the industry. The Labour Hire Act was created to protect Queensland’s labour workers from exploitation and promote the labour hire industry’s integrity.

2) Those engaging labour hire services have just as much obligation to ensure compliance

This is a crucial point of the Labour Hire Licensing Act – you, as a person who engages labour hire services, have just as much onus to ensure your providers are compliant as the providers themselves.

Businesses can check the labour hire register online to see if their provider is licensed.

You are also obliged to report labour hire providers who aren’t compliant, and may have workplace inspections from the Queensland government.

To ensure your providers are compliant with the Act, you can easily check the labour hire register online.

3) There are serious penalties if you aren’t compliant

To enforce the Act, the Queensland government has created the Labour Hire Licensing Compliance Unit. If a company is found to be breaking the law, penalties include fines, suspension, cancellation of a licence and up to three years imprisonment.

4) It still applies if you’re based overseas or across state lines

The Labour Hire Licensing Act applies to anyone with operations in Queensland, even if your main base is overseas or outside of the state.

Main branch of the business overseas? As long as you have any operatings in Queensland, you need to ensure you're complying with the Labour Hire Licensing Act.Any business that operates in Queensland has to ensure it is compliant with the Labour Hire Licensing Act, even if the main branch is in another state or overseas.

5) There are some exemptions

Some persons and businesses are exempt from the Act, including:

  • Employees earning over the Fair Work Act 2009’s high income threshold ($142,000 per annum), and who aren’t covered by an award.
  • An executive officer of a corporation who is the only employee supplied to perform the work.
  • An in-house employee of a provider that is supplied on a temporary basis, and not as a labour hire worker.

Harness Energy: A fully licensed labour hire provider

With so much riding on compliance with the Act, it’s essential that businesses engage labour hire providers they can trust. Harness Energy is fully licensed to operate in Queensland. We provide both labour and training in a broad range of industries, from transport and logistics to oil and gas, construction and everything in between. Reach out today to find out more.