Regulation of the Labour Hire Industry in Queensland
Important information for companies using Labour Hire firms.
Following ongoing and serious allegations raised regarding the exploitation of workers under labour hire arrangements, the Queensland Government is taking steps to ensure more will be done to protect vulnerable workers.
In responce, the Labour Hire Licensing Bill 2017 has been introduced with some of the key aspects of the Bill requiring that:
- • Labour hire providers are licensed.
- • Organisations who engage the service of a labour hire provider must only use licensed businesses.
- • Businesses must prove that they are capable to comply with all the relevant laws, are financially sound,
- practice regular reporting methods and declare whether they have been the subject of any disciplinary
- proceedings by a regulatory body within the last 5 years.
- • Pass a proper ‘fit person test’ where a Chief Executive will examine the person’s character, integrity, honesty
- and professionalism.
Licenses are to be renewed annually with fees payable, based on the turnover and wages of the organisation and are set to vary between $1000 and $5000 dependant on the size of the business.
Inspectors are also to be appointed with the powers to enter, investigate, seize and prosecute if there are any suspected breaches of the Bill to further enforce the underpinnings of the proposal.
This is serious business. With The Bill aiming to prevent the mistreatment and exploitation of workers substantial penalties will also be imposed for non-compliance, which are outlined as follows:
- • The maximum penalty for individuals is 1,034 penalty units ($126,044.60) or 3 years imprisonment.
- • The maximum penalty for corporations is 3,000 penalty units ($365,700).
- • For a person advertising that they provide labour hire services and fail to hold a valid license will face a
- maximum penalty of 200 penalty units ($24,380).
As you can gather, this new Bill is not to be taken lightly in any case and it looks like the issue won’t stop there either. Inquiries into Victoria and South Australia have identified similar evidence of exploitation and support has been given to introduce a licensing scheme to cover and protect their vulnerable workers also.
What this means for Companies using Labour Hire
The proposed legislation will not only cover companies in Queensland but also companies who provide labour hire into Queensland.
In preparation for these new requirements, enquire with your current supplier of labour hire workers to make sure they are preparing to become licensed QLD providers and seek contractural protections when engaging in labour hire activities as fines and penalties may eventually apply to Queensland based Companies that use non-licensed labour hire firms.
Full details of the Labour Hire Licensing Bill 2017 can be found here.
