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Labour Hire Licensing
In this article
What is a labour hire provider?
A business provides labour hire services if, in the course of carrying on a business, the business supplies, to another person or business, a worker to do work.
This is an all-encompassing definition that includes, for example:
- a group training organisation that supplies an apprentice or trainee to an employer and/or
- an employment agency who on-hires temporary administration staff to a business.
Are there exceptions as to who is a labour hire provider?
Yes, you will not be considered a labour hire provider if you enter into a contract to carry out construction work. This exemption is designed to cover genuine subcontracting arrangements within the building industry.
Examples:
| Situation | Is the business a labour hire provider? |
|
No, this appears to be a genuine subcontracting arrangement and is therefore not considered to be labour hire. |
|
Yes, the subcontractor providing the workers is considered to be providing labour hire services in this case. |
|
No, this appears to be a genuine subcontracting arrangement and is therefore not considered to be labour hire. |
Are there exceptions as to who is a worker?
Yes. If you are a “labour hire provider” that has a workforce of excluded workers you will not have to have a labour hire licence to supply that worker.
Workers are excluded if:
1. High income employees
They are a high wage employee meaning:
- their annual wage is equal to or more than the amount of the high income threshold under the Fair Work Act 2009, and
- they are not covered by a Modern Award or enterprise agreement.
2. Sole directors
The provider is a corporation - an individual who is an executive officer of the corporation and the only individual the provider supplies, in the course of carrying on a business, to another person to do work.
3. In-house employees
An in-house employee of a provider whom the provider supplies to another person to do work on a temporary basis on one or more occasions. For example:
- an architect who works for various clients, or
- a certifier working for various clients.
Note: the definition of an in-house employee is someone:
- engaged as an employee by the provider on a regular and systematic basis, and
- has a reasonable expectation the employment with the provider will continue, and
- primarily performs work for the provider other than as a worker supplied to another person to do work for the other person.
4. Related entities
An individual who a provider supplies to another person to do work if the provider and the other person are each part three of an entity or group of entities that carry on business collectively as one recognisable business, for example:
- a landscaping business is comprised of a number of companies that are responsible for different aspects of the business. The business’ workers are all employed by one of the companies and are supplied to work for one or more of the other companies within the business.
What do I have to do if I am considered a labour hire provider?
You must apply for a licence with the authority. Information to be provided includes:
- identification (e.g. your name, address and ABN)
- identify at least one person (who can be you) as a nominated officer who is responsible for the day to day operations of the labour hire business
- show that the nominated officer or officers are fit and proper people to provide labour hire services
- show that you can comply with the relevant laws
- show that the labour hire business is financially viable. You can show financial viability by:
- making a declaration of your finances
- providing other evidence, like an appropriate insurance or workers’ compensation policy
- paying an application fee
If you are a labour hire provider under the scheme, you must have a licence to operate in Queensland. Penalties will apply if you provide labour hire services without a licence.
What do I have to do if I want to use labour hire workers?
If you want to use labour hire workers, you must only use a licensed provider. Penalties will apply if you use a provider who isn’t licensed. The Queensland Government will provide a searchable public register of licensees. This will let you check if a labour hire provider is licensed. If you want to find a suitable labour hire provider, you will be able to search by location and/or industry.
Further information
For what is covered by the above scenarios visit:
To find out more, contact HIA's Workplace Services team
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