On 7 September, the Queensland Parliament passed the Labour Hire Licensing Act 2017 (Qld). The licensing system under the Act includes licence fees and requirements that the management of labour hire providers are ‘fit and proper’ persons.  There are also significant new penalties for operating as a labour hire provider without a licence or for engaging a labour hire provider which does not have the necessary licence.

There is still a lot of ambiguity under the passed legislation, most notably, the Act has not resolved whether common corporate group arrangements (which involve internal provision of labour from one group company to another) will be captured.  Unless exempted by regulation, such group structures will need to obtain a labour hire licence to operate without risk of penalty. As such, it is essential that you determine whether your business is a labour hire provider and whether you need to be licenced, and whether you need to revisit any arrangements with existing service providers.

The Regulations to accompany the Act are yet to be published and it is anticipated that they will define the coverage of the Act, but with everything the devil is in the detail.