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Labour Hire Licensing Laws

Although not concerned only with health and safety, the introduction of labour hire licensing laws in Queensland and SA will also have an impact on the management of health and safety for contractors.

For example, the Queensland Parliament passed the Labour Hire Licensing Act 2017 in September, which commenced on 16 April 2018.

The new Act aims to prevent the exploitation of workers by introducing a labour hire licensing scheme that imposes hefty penalties for non-compliance.

In order to obtain a labour hire licence, an organisation must pass a fit and proper person test, which seeks to establish that the provider is capable of providing labour hire services in compliance with all relevant laws, including work health and safety laws.

The Act also intends to capture all types of labour hire arrangements of all descriptions, including group training activities and pyramid labour hire arrangements. Similar laws are in operation in SA and are also making their way through the Victorian parliament.

In 2018, as part of the focus on labour hire licensing laws, employers should expect regulators to closely examine contractor arrangements involving labour hire.

This will extend to include workers’ compensation coverage and the discharge of the duty of care in respect of the health and safety of labour hire workers, particularly vulnerable workers such as migrants and young workers.

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