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Have your say on Labour Hire Licensing

Submitted on Friday, 9th June 2017

The Victorian Government recently released its full response to the Inquiry into the Labour Hire Industry and Insecure Work and confirmed its intention to introduce a licensing scheme for labour hire firms.

The government is now undertaking a scoping study to determine how the scheme would operate, its coverage and the licensing model.

The Victorian Chamber is advocating strongly against such a scheme.

Should the government decide to proceed with such a scheme, the Victorian Chamber will urge the government to ensure the business impacts of any new licensing scheme are minimised.

To obtain a licence under the proposed Victorian labour hire licensing scheme, the labour hire operator would need to meet the following criteria:

  • pass a ‘fit and proper person’ test, which would include no past convictions for offences involving fraud, dishonesty or violence and no past involvement in insolvent businesses or breaches of workplace or occupational health and safety laws;
  • demonstrate (e.g. through employment records) that it pays its employees in accordance with legal minimum rates of pay and other entitlements;
  • be registered with the Australian Taxation Office and be deducting taxation and remitting superannuation contributions on behalf of employees;
  • if accommodation is provided to employees in connection with their employment it must meet minimum standards;
  • be registered with WorkSafe and be paying any required premiums;
  • demonstrate systems for compliance with occupational health and safety legislation for workers
  • demonstrate compliance with federal migration laws, including systems for ensuring that all employees have a right to work in Australia.
  • pay an initial licence fee, and an annual fee for renewal of their licence.

Victorian Chamber members operating in the labour hire sector have highlighted the significant effort and resources they already devote to ensuring compliance with legal requirements and have also expressed concern at the prospect of having to comply with an additional regulatory scheme targeting the labour hire industry.

To assist in effectively representing your interests in our advocacy to the Government, the Victorian Chamber will soon be contacting relevant members directly to hear about how this proposal might impact their business. In addition, you can also provide direct feedback to Hugh Horsfall, Manager Economics and Industry Policy, on 03 8662 5106 or hhorsfall@victorianchamber.com.au .

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