Regulation of the labour hire industry in Queensland

In May 2017, the Queensland Government promised that mandatory licensing of labour hire companies would be introduced in 2018 in a bid to “crack-down on rogue operators who are exploiting and mistreating vulnerable workers”.

At the time, the Queensland Premier, Annastacia Palaszczuk, was quoted as saying:

“You need a licence to operate a real estate agency or to be a motor car dealer, so why shouldn’t you need a licence to run a labour hire firm? Just last month a Queensland labour hire company was found to have underpaid workers $77,649 over a seven week period. Some of these workers were at times forced to work entire days harvesting produce without food or drink, without pay, as well as being forced to live in isolated transient accommodation. The only way to put an end to this kind of appalling exploitation is through the introduction of a proper labour hire regulation scheme.”

Ms Palaszczuk said under the proposed mandatory licensing scheme, all labour hire providers operating in Queensland will need to:

  • pass a fit-and-proper person test;
  • comply with strict workplace laws, including workers’ compensation, wages and superannuation;
  • pay a license fee;
  • report regularly on their operations; and
  • divulge the number of employees they have engaged, along with the number of employees engaged through work visa arrangements.

When the proposed scheme was announced, Industrial Relations Minister, Grace Grace, said:

“We consulted widely with key industry stakeholders on the challenges facing the industry and the vast majority support mandatory licensing. They’re sick and tired of seeing workers outrageously exploited, and fed up with being undercut by shonky operators who flout the rules with impunity. Our mandatory licensing scheme is aimed squarely at protecting workers and restoring a level playing field so that ethical operators can compete fairly, without imposing any unnecessary administrative burdens. Our proposed new laws will be backed by stiff penalties and some offenders will be liable for criminal prosecution. A compliance unit will also be established to check licence holders for continued compliance with their licence conditions, and to investigate complaints.”

 

Labour Hire Licensing Act 2017

The Labour Hire Licensing Act 2017 (the ACT) will commence on 16 April 2018 and labour hire providers will be able to apply online for a labour hire licence from this date.

The Act establishes a mandatory labour hire licensing scheme to protect labour hire workers from exploitation and promote the integrity of the labour hire industry. Key features of the Act include:

  • labour hire providers to be licensed to operate in Queensland
  • persons who engage labour hire providers to only engage licensed providers (VERY IMPORTANT!!!)
  • labour hire licensees to satisfy fit and proper person test to establish that they are capable of providing labour hire services in compliance with all relevant laws
  • the labour hire business is financially viable.
  • licensees must provide six monthly reports on labour hire and associated activities including accommodation, and in relation to compliance with relevant laws
  • strong penalties for breach of obligations
  • establishing a labour hire licensing compliance unit with a field services inspectorate with responsibility for awareness, monitoring and enforcement functions.

A stand-alone labour hire licensing website will provide information about the scheme and rights and obligations for labour hire providers, users of labour hire and workers. Labour hire providers will also be able to apply for a licence and provide their reports through the website. Users of labour hire and workers will be able search a register of licensed labour hire providers so that they can verify that they are dealing with legitimate licensed businesses. Any problems or concerns about a labour hire provider or labour hire arrangement can be easily reported through the website or by contacting the Labour Hire Licensing Team.

From 16 April 2018, existing labour hire providers will have 60 days to lodge an application for a licence. If an application is made within the 60 day period the obligations and penalties of the Act will not apply until the licence decision has been made.

Regular updates on the establishment of the licensing scheme and the development of the subordinate legislation will be provided through Queensland Treasury’s labour hire licensing mailing list. Companies who would like to be included on the Treasury’s labour hire licensing mailing list to receive regular updates can email labourhire@oir.qld.gov.au to lodge their request.

Businesses should also note that if you are considering using labour hire firms in South Australia, new labour hire laws became effective there on 1 March 2018. New labour hire laws are also proposed for Victoria and, in time, Western Australia and the ACT.