The Labour Hire Licensing Act 2018 and regulations come into full effect on 30 October 2019.
As from that date, it will be an offence to provide or to use unlicensed labour hire services in Victoria.
Essentially, this is any business that provides workers to other businesses or organisations whether as their own agency employees or as contractors.
The Labour Hire Authority has been set up to administer and regulate labour hire across Victoria.
Who is a labour hire worker? According to the Authority, the answer is :
‘Workers are generally individuals employed and paid by labour hire providers and supplied to host businesses, farms or organisations on a full-time, part-time or casual basis.
In addition, if a person supplied by a labour hire provider is entitled to be paid by a host, that person will be a worker under the LHL Act if the labour hire provider also procures or provides accommodation for the person.
A person who is an independent contractor supplied to a host by a labour hire provider will also be a worker under the LHL Act if the labour hire provider continues to manage the performance of the contract — for example by providing administrative and payroll functions or performance management in relation to the contractor.”
There are some additional considerations which effectively broaden coverage in specific industries namely horticulture, meat and poultry processing and contract cleaning.
You can find out whether any labour hire provider or temp service that your business may use is registered to operate at the Labour Hire Authority
Note: maximum penalties for using unlicensed labour hire providers are in excess of $500,000.