Labour Hire and Contractor Licensing Law set to commence on 31 August 2019

Are you prepared for Labour Licensing Act to be enforced?
After much uncertainty, the South Australian Government announced on 7 June that the Labour Hire Licensing Act (the Act) will be enforced from 31 August 2019 after motions to repeal the Act failed in the Legislative Council.

Consumer and Business Services announced the news and will be responsible to managing and enforcing the new labour hire requirements. Applications for licenses will open on 14 June 2019.

The South Australian Wine Industry Association has put together a notice for WGCSA members outlining all of the changes and what will be required once the Act is in place. 

SAWIA Notice to WGCSA Members
SUMMARY

• Labour hire and contracting providers engaged in “labour hire services” must apply for a licence by 31 August 2019.
• Applications for licenses open on 14 June 2019.
• Unlicensed providers of “labour hire services” subject to $400,000 penalty and/or 3 year imprisonment.
• Clients using unlicensed providers of “labour hire services” subject to $400,000 penalty and/or 3 year imprisonment.
• SAWIA labour hire briefings to be run in July-August.

The South Australian Wine Industry Association (SAWIA) took the lead arguing for sensible and practical changes to the licensing scheme since it was introduced by the former State Government. Through our advocacy SAWIA was able to obtain a number of important improvements to the Act. SAWIA supported the Marshall State Government’s repeal legislation and given the number of fundamental issues remaining with the Act, continues to advocate for the legislation to be repealed.

The Act establishes a licensing scheme for providers of “labour hire services” and makes it unlawful for clients, including wineries and wine grape growers, to engage unlicensed providers of “labour hire services”.

THE ACT: KEY PROVISIONS
Licensing requirements:
- A licence will be required where:

• a business provides workers to work for someone else in and as part of that other person’s business;
• there is an arrangement with the workers to be supplied to another person to do work;

and

• the workers that are provided to the other person are paid, whether in full or in part, by the provider - eg even if payment is only for accommodation.

- A provider must not provide services unless licensed and a client must not use the services of an
unlicensed provider.

- A provider applying for licensing must demonstrate they are a “fit and proper person”, including
compliance with 13 different laws and prior business experience.

- A provider must upon application pay the $1,788 application fee (less for a natural person
registering) and thereafter the $1,226 annual licensing fee (less for a natural person).

- A public register of current licensees and applicants will be available online via CBS.

BREACHES OF THE ACT

• Unlicensed providers and their clients may be subject to $400,000 in penalties and/or 3 years imprisonment.
• Unlicensed providers advertising their services may be subject to $30,000 in penalties.
• Clients or prospective clients must report that a provider has provided or sought to provide services in breach of the Act of may be subject to $30,000 in penalties.

WHAT YOU NEED TO DO

• Undertake due diligence of current and prospective labour hire and contracting providers in relation to employment law, migration law and work health and safety law.
• Contact your current to inquire into their knowledge of the licensing requirements under the Act.
• Determine whether your current providers must be licensed.
• If a licence is required, review the public register to determine whether a provider holds a licence.
• Formalise your labour hire and contractor arrangements through a written agreement with your providers.
• Report any instances of unlicensed providers seeking to circumvent the Act to CBS.

LABOUR HIRE BRIEFING SESSIONS
To assist wine industry employers, including grape growers, in complying with the Act, SAWIA will be
running briefing sessions across South Australia’s wine regions commencing 24 July 2019. Further
information will be distributed later in June.

FURTHER INFORMATION AND ADVICE
For further information and advice, members of the Wine Grape Council of South Australia can contact SAWIA’s Business Services Manager Henrik Wallgren T: 8222 9270, E: henrik@winesa.asn.