ACT to introduce labour hire licensing scheme

The scheme is anticipated to commence in 2021, with a six-month transition period beginning in January 2021.

The Australian Capital Territory Government has introduced legislation into its Assembly for a labour hire licensing scheme.

Under the ACT scheme, labour hire providers will need to apply for a licence, meet a ‘suitable person’ test and demonstrate a history of ongoing compliance with industry standards and workplace laws.

The first ever labour hire licensing scheme for the ACT will ensure labour hire providers meet the workplace obligations and responsibilities they have to their workers, with penalties to apply to any providers in breach of the scheme.

Minister for Employment and Workplace Safety, Suzanne Orr, said that a labour hire licensing scheme will better protect workers in the labour hire industry and ensure providers are doing the right thing.

“A labour hire licensing scheme will ensure the rights and conditions of labour hire workers in the ACT are upheld with new penalties to apply to providers who do the wrong thing,” Orr said.

“Recent inquiries across the country, including here in the ACT, have highlighted the vulnerability of labour hire workers to poor treatment at work. In response to these unacceptable practices, the government is delivering better protection for these workers.”

The scheme is anticipated to commence in 2021, with a six-month transition period beginning in January 2021 for labour hire providers to apply for a licence.

A publicly available licence register will assist businesses, workers and the community to know if they are dealing with legitimate labour hire providers.

Labour Hire systems already exist in Victoria, South Australia and Queensland.

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