Labour Hirers (people who use labour hire workers)

Under the Labour Hire Licensing Act 2020 (the Act), labour hirers have duties and must only use licensed labour hire providers.

From 27 November 2021 onwards, you must find out if the provider you are using holds a current ACT labour hire licence, and for you to seek confirmation from that provider. There is a public register that you can check to see if the provider you hire from is licenced. You need to do both of these things to show WorkSafe ACT inspectors that you’re complying with your obligations under the Act.

If you use labour hire services from an unlicensed provider you may face regulatory action, with the maximum infringeable penalty for a corporation being $2,430,000.

Under the Act labour hirers:

  • Must:
    • comply with their legal obligations by only engaging with licensed labour hire providers
  • Should:
    • not enter into an avoidance arrangement, also known as ‘sham contracting’. A sham contracting arrangement is when an employer attempts to disguise an employment relationship as a contractor relationship. They may do this to avoid certain taxes and their responsibilities for employee entitlements, e.g. minimum wages. You can find more information about sham contracting here: https://labourhireauthority.vic.gov.au/latest-news/sham-contracting-who-is-an-employee-and-who-is-an-independent-contractor/
    • report labour hire providers who are avoiding their legal obligations, such as those who are unlicensed, to Worksafe ACT at labourhirelicensing@worksafe.act.gov.au
  • May:
    • be subject to inspections by WorkSafe ACT Inspectors.

What else can I do as a labour hirer? 

Labour hirers have an essential role in maintaining healthy and safe conditions for workers.

You can help to tackle unlicensed activity and exploitation of workers by:

  • Maintaining an up-to-date list of all workers on your site
  • Understanding your obligations when hiring labour hire workers (visit the Fair Work Ombudsman for more information)
  • Setting clear expectations that your labour hire provider will comply with workplace laws
  • Be aware of, and understand, any subcontracting arrangements that may take place, and
  • Inform WorkSafe ACT of any problems or breaches of labour hire licensing laws.

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