Labour hire services agreements will be regulated and enforced in Victoria under the Labour Hire Licensing Act 2018 (Vic) from 30 October 2019.
The types of Agreements to be regulated include for work to be performed in Victoria and arrangements made within Victoria for work to be performed outside Victoria.
Labour hire service providers will be required to hold a valid licence in order to provide services in Victoria. The definition encompassing labour hire service providers is broad and all-encompassing and focuses on the arrangements between third party providers and host employers.
A person will provide labour hire services if they supply one or more individuals to another person to perform work as part of a business of the host. This will apply regardless of whether a contract has been entered into between the Provider and the host, or whether the workers are provided directly or through intermediaries.
A person will be deemed to be a worker for a provider if there is an arrangement in place between the worker and the provider, under which the provider will supply the worker to one or more persons to provide work and the host will be obliged to pay the worker for their work, either directly or through intermediaries. In addition, a person will be deemed to be a worker for the provider if there is an arrangement in place between the person and the provider, under which the provider recruits the person or places them to perform work with another host, including if they are recruited and/or placed as an independent contractor. The person will be deemed to be a worker regardless of whether they are an employee of the host or a contract has been entered into between the worker and provider.
There are exceptions where the provider and the host are each part of an entity or a group of entities that carry on business collectively as one recognisable business.
To ensure that you and your business are ready for the labour hire changes coming into effect, contact the workplace relations team at Nevett Ford for guidance and assistance every step of the way on