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Labour hire licensing

October 15, 2019

HIA has recently received queries from a few members who are entering into subcontracts where they provide trades to a builder to help with building work.  These arrangements often are for hourly rates and the work to be completed by these workers is not necessarily specified.  For example, a member may charge hourly rates for their carpenters to work for another builder and not specify exactly what work must be completed by the carpenters.  Such an arrangement is very different to a traditional subcontract, where the builder engages a contractor to carry out specific work for a specific price. 

These arrangements are likely to be captured by the new labour hire licensing scheme starting on 30 October 2019.  Once this legislation commences the member will need to be a licensed labour hire provider and make sure that their workers are properly engaged.  This may require that these workers be employed and not engaged as subcontractors.  Members who are paid for their employees or contractors to work on other builder’s sites need to get advice on their exposure to this legislation before the end of the month.  There are serious penalties for being an unlicensed labour hire provider and for builders who engage workers through an unlicensed labour hire provider.

For further information, please call 1300 650 620 to speak to a HIA Workplace Adviser.