Act Labour Hire Licence Law

A temporary worker supplier is a person or organization that, in the course of conducting a business, has entered into an agreement with one or more persons, including the company: If you provide one or more employees to work in and as part of another person`s business or business, you are likely to be a provider of employment contracts. If this is the case, you must apply for a license. These types of workers who are employed under a hiring agreement do not need a work permit from their employer: if you hire workers and do not have a permit after November 27, 2021, significant penalties apply. After November 27, 2021, providers who do not have a license and employers who use an unlicensed provider could face heavy penalties. On the 27th. In May 2021, the ACT introduced a new licensing system for employment agency providers that will better protect workers and promote responsible practices in the payroll industry. Licensing temporary workers is still a hot topic in Australia today. And we`ve raised a lot of questions with our clients and colleagues because these government laws represent a sea change for the people and organizations affected. As with all legislative matters, lack of knowledge is not a defence against non-compliance. Note that the bill provides whether an applicant is a person capable of holding a licence. The bill broadly defines the term “employment services” to ensure that the employment services industry as a whole is regulated.

Suppliers who only provide persons excluded from the definition of employee in the LHL Act and the regulations of the LHL, such as certain seconded persons or students, are not considered to be suppliers of temporary workers and do not need to be licensed. You can find more information on our excluded employee categories page. This is a positive change for workers, especially those in vulnerable industries – such as horticulture, meat, cleaning – but also beyond these sectors. You see, the laws have taken on a broader mandate to protect ALL workers involved in ALL types of work hiring transactions. Until November 27, 2021, any provider who is not licensed will not be able to provide temporary work services for the ACT. The supplier provides employment services, whether or not the employee is employed by the supplier; there is a contract for the employee to do the work; the employee is delivered directly or indirectly to the tenant; or the work performed by the employee is under the control of the supplier or tenant. Licensed suppliers of temporary agency workers are required to report every 12 months on their hiring activities for workers over the past 12 months to improve transparency and integrity in the employment sector and monitor compliance. Licences under the scheme cannot be issued for more than 12 months and must be renewed annually. There is a licence application fee of $2,900.00 and an annual fee of $2,900. Under clause 34 of the bill, a person commits a crime if he or she holds a work permit subject to a condition and does not meet the condition and complies with a maximum sentence of 200 sentences (currently $33,600).

Employers who use unlicensed temporary employment service providers as of November 27, 2021 will also be subject to a fine. Note: A company only needs to provide an employee to a host to be a labor provider. For more information on how the new payroll licensing system may affect you, please contact our sales team on 02 6285 8000 or by email. Persons or organizations registered by 27. November 2021 do not have an approved permit, cannot provide placement services in the ACT, or they must expect regulatory action Under section 33 of the bill, a person commits a crime if they provide placement services and is not in possession of a job creation license that carries a maximum penalty of 800 penalties for an individual (currently $128,000) or 3,000 penalties for a business (currently $2,430,000). A person commits a crime if he falsely claims that he holds a work permit when he does not. In addition, this specific violation is punishable by a maximum penalty of $44,400.00 (or 200 penalties). Clause 7 of the Bill states that a person (a supplier) provides employment services if, in the course of carrying on a business, he or she makes an employee available to another person (the tenant) to perform work.

The new program will begin on May 27, 2021. There will be a six-month transition period to give the supplier time to obtain a licence, and the Commissioner will not take compliance action against a person who provides employment services but does not hold a licence during that period. The system established by the Labour Hiring Licensing Act 2020 requires any person or organisation providing “employment services” to be licensed before they can provide such services in the ACT. The bill will achieve this by creating a framework that effectively prevents and responds to non-compliance with workplace standards in the employment services industry by ensuring that all workers in the employment services industry are protected, the bill also uses a broad definition of the term “employee.” .