Labour Hire Be Warned | FTI Consulting

Labour Hire Be Warned

Corporate Finance & Restructuring | Construction

February 28, 2018


The new Labour Hire Licensing Act 2017 (QLD) passed Queensland parliament on 7 September 2017 with a commencement date of 16 April 2018.

It introduces a mandatory licence scheme whereby all labour hire providers in Queensland must obtain a licence to operate, and persons who engage labour hire providers must only engage labour hire providers who are licenced.

This wide-ranging legislation will impact almost every business operating in Queensland in some way and the consequences for non-compliance are significant (maximum of $126,044 or 3 years imprisonment for individual, and $365,700 for a corporation).

The concerning news is we believe a large proportion of business owners may be at risk of non-compliance and operational stress and may not even know it.

The new norm

Whilst the regulations accompanying the Act have not yet been released (the consultation period for these closed 2 February 2018), this extremely broad legislation currently applies to:

  1. All labour hire providers in Queensland who carry on a business of supplying workers to work for any other person; and
  2. Users of labour hire services in Queensland.

The challenge for SME businesses (including accounting or law firms) is the scope of the new legislation. The definition of provider and labour hire services is as follows:

“A person (a provider) provides labour hire services if, in the course of carrying on a business, the person supplies, to another person, a worker to do work”.

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