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28th March 2018

LABOUR HIRE LICENCING LAWS COMMENCE 16 APRIL 2018

LABOUR HIRE LICENCING LAWS COMMENCE 16 APRIL 2018

The new Labour Hire Licencing Act commences on 16 April 2018 and you might be surprised who it effects.

The laws grew out of constant complaints by employees in the horticulture industry regarding allegations of chronic mistreatment and underpayment, but the coverage of the new legislation is much broader than the horticulture industry.

The Act is broad enough to cover the following scenarios:

  • Businesses that provide “contract labour” to farms and any other industry
  • Business that operate under a “corporate group arrangement” where one company employs staff and contracts them to another company in the group.  This is very common in the following industries:
    • Legal
    • Accounting
    • Medical
    • Health
  • Hostels that house people and drive them to farms.  They will probably be covered even though the Hostel does not employ the workers;
  • It could even cover a business that owns premises in one entity and runs the business in another.  Further investigation is required in this scenario as there are so many possible alternatives.

What is Required

A business that engages a “labour hire provider” must make sure the provider is licenced otherwise stiff penalties may apply.

Generally, a business that provides labour must ensure that they are licenced.  We have been informed that there will be a window to apply for a licence, though the details of that window are not yet known.  Failure to comply may also result in stiff penalties.

For further information please contact Michael Waters – MRH Lawyers on (07) 41545510.