Labour hire changes

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  • Plant & Equipment

New Victorian government labour hire licensing laws to regulate the operation and use of labour hire services have now come into effect

New labour hire licensing laws have come into effect in Victoria

The transitional period for the Victorian labour hire laws ended on October 29 this year, as the prohibitions on the provision and use of unlicensed labour hire services came into effect from October 30.

If a business provides labour hire services in Victoria from October 30 and they have not applied for a licence, then they can face serious fines, exceeding $500,000 for companies and $100,000 for individuals.

In addition, businesses who engage a labour hire provider to supply a worker (the "host") will face the same penalties as those for operating unlicensed.

A "labour hire provider" is a business that has an arrangement with one or more individuals under which the business supplies the 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 the work.

A labour hire provider also includes a business that provides certain recruitment and placement services, as well as contractor management services.

Hosts who enter into an arrangement after October 29, 2019 with an unlicensed labour hire provider face the same penalties as those for operating unlicensed.

Businesses who engage in the supply, and/or placement of workers should seek advice as to whether these arrangements are covered by the legislation, and if they are, take appropriate steps to avoid exposure to substantial penalties.


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