Do Victoria’s new labour hire laws put your business at risk?

 

New labour laws come into effect from 30 October 2019 prohibiting business from using unlicensed labour hire providers.

Previously, businesses, farms or other organisations that use the services of labour hire (also known as ‘hosts’) could be a little less careful about the providers they use to supply them with individuals to work in their businesses.

But the Victorian Labour Hire Authority is promising a strict enforcement of the new licensing system, including the deployment of a team of inspectors with the authority to enter and search premises and examine and seize anything suspected of being connected with a possible contravention.

Hosts doing so will be exposed to significant fines, with a maximum penalty exceeding $500,000.

And with the ATO’s new Single Touch Payroll meaning all payroll information will now be open and accessible online, any discrepancies will quickly be picked up across various government systems.

Put simply, it means there’s nowhere to hide – and time is running out for you to make sure your business is compliant when it comes to labour hire.

Are you at risk?

If you’re a labour hire ‘host’ – i.e. you use the services of labour hire providers to obtain labour for your enterprise – you’re potentially at risk.

From 30 October 2019 hosts must only use licensed labour hire providers or providers that have applied for a licence before 30 October 2019 and not been refused.

Before the new licensing system came into force, all responsibility was on the labour hire company to ensure workers were being paid and treated fairly. Now, that responsibility – and the ramifications for improper practice – is shared with the host.

And you won’t be able to plead ignorance – the responsibility for ensuring compliance sits with the host. As we mentioned before, there are huge fines (more than $500,000) on the table for businesses who continue to use unlicensed labour hire providers.

How do you get compliant?

As long as a company has applied for the license (and not been rejected) they are legally compliant.

Before engaging a labour hire provider, you need to be able to find them on one of these lists of licence applications, provisionally granted licences and granted licenses:

Register of Licensed Labour Hire Providers

Applications provisionally granted

Labour hire application public register

There are also a few questions you need to ask any potential labour hire provider to make sure you’re not only protected but demonstrating best practice when it comes to labour hire.

Labour hire licensing, statutory compliance & best practice checklist

Use this checklist to make sure you’re compliant with new Victorian labour laws, which came into effect from 30 October 2019, and ahead of the game when it comes to best practice.

1. Before engaging a labour hire provider, hosts can find the lists of licence applications, provisionally granted licences and granted licenses through the following links or on the LHA homepage. 

Register of Licensed Labour Hire Providers

Applications provisionally granted

Labour hire application public register

The LHA website also has a search function for applications recieved. You can search for your provider by ABN (rather than name) to find their licence applications.

2. Does your labour hire provider comply with the following (statutory compliance):

• VEVO check / work rights check
• Correct classification of workers, i.e. employee or a contractor
• Australian National Employment Standards (NES), modern awards and minimum wage requirements
• OH&S regulations & workers compensation
• Single Touch Payroll (STP)
• Superannuation guarantee
• PAYG withholding

3. Do they have sufficient protections and recommended professional affiliations in place:

• Public liability insurance
• Professional indemnity insurance
• Workcover insurance (also a statutory requirement)
• Professional industry group membership (e.g. RCSA membership)

4. Does your labour hire provider conduct following checks and/or maintain the relevant records on workers’:

• Employment contracts
• Identification and license/qualifications check
• Job role-specific OH&S inductions and assessment
• General health questionnaire and/or a functional capacity assessment
• Skills assessments and numeracy/literacy tests
• Criminal history checks
• Drugs and alcohol checks
• Professional reference checks

 

5. Is your labour hire provider adding value to your business by proactively:

• Identifying and managing employee and industrial relations issues that may impact your operation
• Partnering with you on OH&S issues and assisting with corrective measures (remember, safety of on-hire workers is a joint responsibility of the host employer and the agency)
• Consulting with you on continuous improvement of processes and optimising labour usage

Remember… if it seems too good to be true, it probably is!

Get this checklist as a takeaway PDF to share with your colleagues and make sure you’re in the clear.

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Download our labour hire licensing, statutory compliance & best practice checklist >>

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Why is the new system being introduced?

The scheme is in response to the independent Victorian Inquiry into the Labour Hire Industry and Insecure Work, which uncovered widespread abuse and exploitation of workers across Victoria.

The inquiry found evidence of non-compliant labour hire practices across various sectors of the Victorian economy. In particular, there were three industries in which non-compliance amongst labour hire agencies is particularly prevalent: horticulture; meat and cleaning.

When announcing these laws in February 2019, Labour Hire Authority Commissioner Steve Dargavel said:

“The Labour Hire Authority is looking forward to making sure that the rights of labour hire workers are protected, and to driving improved accountability and transparency across the labour hire industry.”

“This is a strong scheme that will bring about much-needed regulatory reform in an industry where more protection is needed.”

 

Blaze Staffing Solutions is a compliant labour hire provider, as our licence application is currently pending. We have a pool of highly motivated and capable people ready to hit the floor running in your business.

All Blaze workers are reference-checked and interviewed before being sent to a job, and Blaze can guarantee attendance – we have systems in place to ensure staff turn up on time and ready to work.

We also take care of rostering, payroll, insurance and tax, so your team can focus on the task at hand without unnecessary distractions.

Find out more at https://www.blazestaffing.com.au