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Cost of labour hire licensing must be reduced

Submitted on Wednesday, 12th September 2018

The Victorian Chamber recently made a submission to the Victorian Government on the exposure draft regulations and regulatory impact statement for a Victorian labour hire licensing scheme. The submission urges the government to reduce the cost and impact of the scheme on business.

Key elements of the proposed licensing scheme are outlined in an earlier article.

The Victorian Chamber has opposed the licensing scheme since it was announced last year. Feedback from members indicates that the scheme will impose additional costs and red tape on business.

The Victorian Chamber submission has been informed by input from members from the labour hire sector, Group Training Organisations, users of labour hire, and businesses that do not directly use labour hire but use professional services and genuine outsourcing arrangements.

Our submission makes six key recommendations to reduce the impact of the regulations on business without changing their intent:

  • Include an explicit exclusion for the provision of professional/trade services and genuine sub-contracting arrangements
  • Include an explicit exclusion for high income earners whose annual wages exceed the Fair Work Act 2009’s high-income threshold (currently $145,400)
  • Use a more objective definition of secondee
  • Include an exclusion for registered Group Training Organisations
  • Lower fees by making greater use of existing resources within the Department of Economic Development Jobs Transport and Resources
  • Cleaning business that do not provide labour hire services should not be included in the scheme

Implementation of the scheme will require the development of significant explanatory and guidance material to help both labour hire and host businesses understand their obligations.

The Victorian Chamber will work with the Government on the development and communication of this guidance material.

To find out more about how the scheme may affect your business, please email Hugh Horsfall from the Policy and Advocacy Team or call (03) 8662 5106.

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