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Labor to cost labour hire industry

21 June 2018

Victorian businesses operating in the labour hire industry will be confronted with extra costs under the Andrews Labor Government’s new Labour Hire Licensing Act 2018.

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The Victorian Chamber of Commerce and Industry has opposed the labour hire licensing scheme since it was announced by the Government last year, as the scheme will impose additional costs and red tape on business operating in the sector.

Victorian Chamber of Commerce and Industry Chief Executive Mark Stone AM said there is already significant regulation of labour hire under existing laws. He acknowledged there is a need for better enforcement of these laws, but not a new licencing scheme.

“Victorian businesses are very concerned about the financial and administrative burden of having to comply with this new scheme. We are very disappointed that this Bill has passed in Parliament,” said Mr Stone.

Businesses operating in the labour hire sector already put significant effort and resources into ensuring compliance with extensive legal requirements.

The proposed scheme is heavy handed and will impose fees on labour hire businesses to fund a new government authority and inspectors, tying businesses up in red tape and reporting.

“The scheme will add extra barriers for business growth, and potentially cost jobs,” said Mr Stone.

“Increased costs and additional industrial relations laws, such as the introduction of new public holidays, changes to portable long service leave and the labour hire licensing are creating a very challenging environment for the business community in Victoria.”

The Victorian Chamber supports businesses to comply with existing laws and regulations, and we will advocate for a pro-business environment so businesses and the Victoria’s economy can continue to thrive.

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