LABOUR HIRE LICENSING SCHEME – DEADLINE IS APPROACHING!
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To operate legally in Victoria from 30 October 2019, labour hire providers must have a labour hire licence.
A labour hire provider is a business that has an arrangement with one or more individuals under which the business:
Supplies those individuals to perform work in and as part of a host’s business or undertaking and the provider is obliged to pay the individual for performance of that work
An example of this is:
A hospitality staffing agency, HSA Pty Ltd (the provider) supplies waitstaff to restaurant (the host) who requires some extra staff for a large function. The waitstaff are considered to be working ‘in and as part of’ the business of the host restaurant as they are performing the work of the host business, at the host’s premises, directed and supervised by the host and are not considered to be providing a specialised service. The work performed by the workers is a key function of the host’s business and is the same as the work performed by the host’s own employees. HSA Pty Ltd pays the waitstaff it provides, and invoices the restaurant for the hours worked by the waitstaff. No one factor is definitive, but looking at the engagement as a whole, this arrangement would be considered to the provision of labour hire services, and would require HSA Pty Ltd to have a labour hire licence.
Labour Hire providers must register online and apply for a licence prior to 29 October 2019:
Significant penalties will apply if you are found to be a labour hire provider and you are not registered.
If you would like to discuss this further, please contact our office.