The Labour Hire Licencing Act 2020 (ACT) was passed on 21 May 2020 which may impact LASA members who operate businesses that are classified as labour hire. The legislation provides regulation for the providers of labour hire services to ensure that those providers meet their workplace obligations and responsibilities. The legislation also provides a framework to manage non-compliance with workplace standards in the labour hire industry.

The Act prescribes labour hire services as occurring when, in the course of carrying on a business, the person (prove supplies to another person (the hirer) a worker to do the work. A labour hire company must apply for and be granted a licence by the Labour Hire Licence Commissioner. The Commissioner will consider whether the applicant is a suitable person within the meaning of the Act prior to issuing a licence.

In accordance with Part 115 of the Act, there is a six (6) month transitional period commencing on 1 January 2021 where offences and penalties do not apply. This is to provide labour hire organisations the time to apply for and be granted the licence. Unlike similar legislation in other states, the ACT legislation does not specify which industries this applies to and therefore is taken to apply to all industries within the territory.

Members who operate within the Australian Capital Territory and who hire out workers to other services should familiarise themselves with their obligation under this Act and apply for the licence as required. Please contact LASA’s employment relations team if you require further assistance on 1300 111 636 or email employmentrelations@lasa.asn.au