This makes Victoria the third state in Australia to introduce such laws (following Queensland and South Australia). The aim of this legislation is to regulate the provision of labour hire services and protect vulnerable workers. The Labour Hire Licensing Act 2018 commenced operation on 29 April 2019.

Businesses requiring a license will need to have registered and applied by 29 October 2019.

After 30 October 2019, unlicensed labour hire providers or host employers that use unlicensed providers will face fines of up to $500,000.

The Victorian Chamber has been working with the Government and the Labour Hire Authority on the implementation of the scheme. Our work with businesses and the Authority has resulted in a number of changes to the application process and has highlighted key issues that members should be aware of.

Do you require a license?

Does your business supply workers that work in, or deliver services to, other businesses? If so you should investigate whether you will require a licence.

The scheme uses a definition of labour hire that may capture a range of businesses who do not traditionally consider themselves to be a labour hire business, such as those that provide outsourced services.

Cleaning, horticulture and meat businesses

Do you supply workers to work:

• as a cleaner in a commercial premises
• in the horticultural industry, performing certain activities
• in a meat manufacturing or processing establishment
• poultry processing establishment?

If so you are likely to require a licence.

Changes to the application process

As a result of business advocacy, the licensing application form has recently been changed to remove the requirement to provide details of host businesses and information on enforceable undertakings applying to the applicant.

If this information is required businesses will be contacted directly by the Authority. Given settlement agreements are not unusual, the Commissioner has indicated it would not prevent a license being granted.

Fees

Many businesses have expressed concerns about licence fees, specifically the way fees are calculated based on national turnover and turnover not relating to labour hire.

The current fees are set by regulation and will be reviewed in 3 years’ time. The Victorian Chamber will continue to advocate for a lower and fairer fee structure.

What is the role of the Authority?

It is important to note that while the Authority can provide general information about the duties, rights and obligations of providers, hosts and workers, it does not:

• Provide legal advice on individual or corporate entities obligations under the Act or regulations
• Provide business advice
• Provide exemptions to the Act
• Implement higher or lower fees. 

However, the Authority is currently updating its information and guidance for business to address concerns raised to date.

Licensing account

The person named on the license account will need to be someone senior within the company. The Authority has seen numerous examples of accounts being held by receptionists or personal assistants meaning if the person leaves, the account cannot be accessed and fees will be incurred to change the account holder details.

The Authority is recommending businesses carefully consider who the account holder should be prior to starting the application process.

During the implementation period, the Authority has advised that it will waive fees where a change to the account holder is required due to an administrative error.

Information Security

Many businesses have expressed concern regarding the security of confidential information provided to the Authority.

The Authority has provided assurances that all personal information collected by the Authority is handled in accordance with the Privacy and Data Protection Act 2014 (Vic), including the Information Privacy Principles and protective data security requirements, together with the Commonwealth Privacy Act 1988, the Public Records Act 1973 (Vic), the Freedom of Information Act 1982 (Vic) and other laws as applicable.

The Victorian Chamber recommends

Be aware of the new legislation and how it may affect your business to avoid hefty penalties

Speak to the Victorian Chamber Workplace Relations Advice Line for general information regarding the scheme on (03) 8662 5222

Seek independent legal advice for an assessment of whether your business needs to apply to the Authority for a license. If required, the Victorian Chamber can refer you to an expert workplace lawyer with experience advising on the scheme.