Labour Hire Be Warned – Game On!

Construction | Corporate Finance & Restructuring

April 25, 2018

labour

In my first labour hire article I discussed the basic points of the new Labour Hire Licensing Act 2017 (QLD). This article looks at the finer points of the recently released regulations governing the Act.

The new legislation came into force on 16 April 2018 and introduces a mandatory licence scheme whereby all labour hire providers in Queensland must obtain a licence to operate, and persons who engage labour hire providers must only engage labour hire providers who are licenced.

Who is, and who is not, covered

The regulations provide the much needed clarity around the type of workers excluded within the legislation:

  • Workers temporarily supplied to another person/business i.e. temporary secondments;
  • High income workers (earning over $142,000 per annum excluding superannuation and not covered by an industrial award);
  • A director of a business who is the only worker ‘supplied’; and
  • Workers engaged by an employing, or service entity, within a single group of companies and works only within that business.

Aside from the exclusion for employees hired by an employer or service entity, this exclusion appears to be limited to workers who work “only for and within that single recognisable business”. It may not cover those workers where a group of companies has two (or more) distinct and recognisable businesses. Accordingly, whilst the regulations narrow the scope, there are many internal labour hire arrangements that may likely be caught out by the changes.


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