Labour Hire Licensing Bill 2017 (QLD)

Wednesday 31 May 2017 @ 9.57 a.m. | Industrial Law

On 25 May 2017, The Queensland Government introduced the Labour Hire Licensing Bill 2017 into Parliament. The bill would see labour workers protected from exploitation and restore confidence in the labour hire industry. Industrial Relations Minister Grace Grace explained that the licensing scheme introduced by the Bill is the only viable option following widespread evidence of rorting and exploitation of workers. Ms Grace further iterated that the Federal Government’s inability to address these issues has forced the Queensland Government to ‘going it alone’.

Background to the Bill

Following a report from the Finance and Administration Committee Inquiry released on 30 June 2016, the Queensland Government became aware of the exploitation and mistreatment of labour hire workers in Queensland. As Ms Grace described:

“For far too long and far too often we have all heard the stories of vulnerable workers being exploited at the hands of unscrupulous labour hire operators: cases of wage theft and unauthorised deductions, sexual harassment, workers housed in overcrowded and substandard accommodation, a lack of proper safety equipment and training, systemic tax avoidance, sham contracting and phoenixing of companies leaving workers stranded without their entitlements. The tiering upon tiering of labour hire arrangements, found also by the Fair Work Ombudsman, means that workers who have been exploited sometimes do not even know who their actual employer is.”

Ms Grace emphasised that this unmonitored business approach should no longer be acceptable. She reasoned that if real estate agents and motor vehicle dealers are required to be licensed before dealing in their trade, then it follows that anyone dealing in the trade of selling human labour should also be similarly required. Should the Bill pass through Parliament successfully, Queensland would become the first Australian jurisdiction to introduce a hire licensing scheme.

The Scheme

Essentially, the Bill will establish a mandatory business licensing scheme for labour hire in Queensland. The two essential elements of the scheme are that labour hire providers must be licensed to operate in Queensland and that businesses who use labour hire must only engage a licensed labour hire provider. Strong penalties are in place for businesses that breach either of the requirements of the scheme. The scope of the scheme will extend to all businesses operating within Queensland regardless of where their registered address might be.

The Bill does not alter any existing obligations under workplace relation laws. As Ms Grace explained:

“Our mandatory licensing scheme is aimed squarely at protecting workers and restoring a level playing field so that ethical operators can compete fairly, without imposing any unnecessary administrative burdens.”

Licensing decisions will be made by the chief executive and will be subject to a review and appeal process as set out in the bill. To provide further protection to hire workers, persons or organisations with an interest in the protection of workers or the integrity of the labour hire industry will having standing to review and appeal licensing decisions. 

The Bill is currently awaiting Second Reading Debate.

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Sources:

Labour Hire Licensing Bill 2017, Bill and Explanatory Materials as Published on LawOne

Mandatory labour hire licensing scheme introduced

Labour hire companies to be monitored by new licencing scheme in Queensland

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