To combat worker exploitation and substandard workplace safety, Australian legislators have taken innovative steps to regulate labour hire companies. These are designed to address common problems such as denial of rights, theft, and bullying. The measures taken to regulate service providers vary by state, with South Australia, Queensland, and Victoria choosing to codify license requirements for agencies providing employees to host organisations.
Licensing laws came into effect in Queensland and South Australia in 2017, while Victoria formalised their own requirements the year after. Other states like Western Australia, New South Wales, and Tasmania have yet to draw up similar schemes, but do regulate workers’ rights with legislation of their own. This post goes over everything you need to know about licences and their utility in the employment sector.
How it Works: Licence vs. Non-Licence Regulation
Licensure serves to certify that an agency is compliant with current regulations and guidelines around the treatment and rights of Australian workers. Where licenses are required, any agency supplying personnel to an organisation must have their license visible and ready for presentation to inspectors performing checks on their premises.
In states without license requirements, regulatory frameworks guide all firms supplying personnel to employers. Labour hire companies based in Perth (WA), for example, are subject to the Work, Health and Safety Act, which was passed in Western Australia in 2020. Disgruntled labourers represented by a labour hire agency in Perth can report the provider to the relevant authorities to trigger an investigation.
How Regulators Define The Law
At their core, all work arrangements can be broken down into three parties: the agency, the worker pool, and host businesses. This fundamental breakdown is carried through in the legal language of Australian regulations. The Victorian Licensing Authority, for example, defines a provider as “any individual or organisation that, in the course of conducting business, 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.”
Inspectors are the primary means of enforcement around workers’ rights regulations. In cities where labour hire companies aren’t required to have licences like Sydney (NSW), reporting systems like anonymous tip lines are especially important. This gives states requiring licensure an arguable advantage, as their certification processes function as a pre-vetting system for providers.
Are Licences Required Regardless of Industry?
In Queensland, Victoria, and South Australia, any company providing employees to an organisation or enterprise of any kind must be duly licensed. This extends to practically any scenario or operational scale. Examples include:
- An IT services recruiter furnishing software designers with developers or coders
- A private security company staffing an entertainment venue with individuals trained in crowd control procedures and techniques
- A specialised contractor for agricultural operations providing fruit pickers to shorthanded farms during harvest season
Because the purpose of licensure is to ensure transparency and ethical treatment of workers on the part of agencies and businesses, there are virtually no exceptions on licensing requirements regardless of industry. This ensures fair wages and humane working conditions are accessible to Australians across the board.
Penalties For Unlicensed Operations
Penalties for unlicensed services apply not only to providers, but host organisations in states where they are required. For example, when looking to utilise labour hire sourcing, Brisbane-area businesses run the risk of incurring fines of up to $500,000 if they take on employees from an unlicensed agency. This puts significant legal responsibility on employers to ensure they only hire from duly licensed firms.
Licensing laws are in place to protect citizens entering the workforce from exploitation and abuse. In turn, it’s essential for agencies to comply with standardised licensing requirements, and host businesses to only deal with licensed providers. Businesses are encouraged to check their state regulations, or contact a trusted provider in their area if they’re unsure whether they’re subject to licensing laws.or advice.
