From the 16th of April this year, Labour Hire service providers in Queensland are required to be licensed by the state.
The main purposes of the Labour Hire Licensing Act 2017 and accompanying Regulation are to protect workers from exploitation by providers of labour hire services; and to promote the integrity of the Labour Hire industry. As active corporate members of the Recruitment Consulting Services Association, we at OnTalent champion this on a daily basis and we have already commenced the license application process, which includes the following:
- Labour Hire licensees are to satisfy a fit and proper person test to establish that they are appropriate persons are to provide labour hire services
- Labour Hire providers are to comply with all relevant laws
- The Labour Hire business to be financially viable (i.e. be able to pay workers promptly and also meet its other obligations (e.g. taxation, superannuation, WorkCover, etc.)
- Licensees are to report on their activities every six months
- There will be penalties for breach of obligations
- The establishment of the Labour Hire Licensing Compliance Unit within the Office of Industrial Relations with inspectors responsible for monitoring and enforcement activities
The Regulation does clarify several classes of worker that are excluded from the Act, including:
- genuine secondments;
- workplace consulting;
- a high-income worker (an employee currently earning over $142,000 per annum and not covered by a state award, a modern award or an enterprise agreement)
As a result of this Act and Regulation, as an employer of Labour Hire workers (including temporary and contract workers), you must now use a licensed provider. All existing providers may continue to operate until the 15th of June 2018 while their application is being assessed. If you’re unsure whether your provider is licensed or currently applying, it’s best to ask the question.
OnTalent has already submitted our license application and over the next few weeks, we will be helping to educate our candidate base on these new legislative changes to ensure the transition is as smooth as possible. If you’re looking to engage Labour Hire workers, get in touch with Queensland’s contingent workforce leader.