Labour Hire licensing

Business Success Group is a new entrant into the Labour Hire recruitment area.

Our involvement in this is a mere extension from our operation as a Registered Training Organization and at various times in employment services under Commonwealth and State Government programs.

As you will see in the material that will be sent to various parties in this transition phase, it has been essential that we are acting to protect trainees that are currently engaged in the industry where their employer may go into liquidation or is not eligible to act as a labour hire provider.

The material, we believe, is comprehensive in the sense what you need to know about the new arrangements on Labour Hire, but we invite you to contact us at our website’s specialized email address or ring 1300 666 612 to speak with a team member.

The VET training sector for student numbers has been declining over recent years, yet there is a strong demand for employees in this area. We encourage you, as a parent, or as an employer, to engage persons with VET qualifications or those trying to obtain them.

Enrollment as a BSG student

Where a student is currently listed as an employee of the Youth Connections Group and will move to the Business Success Group, Please complete the form on the left hand side saying ATF-047. This form has been partially completed for you, however, you will need to include the Trainee’s name, your name and sign the form. The form can be scanned and then sent back to the BSG Labour Hire email or alternatively, call us and we will make arrangements for it to be collected from the school.

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All labour hire providers operating in Queensland need to be licensed under the scheme. This includes labour hire providers based interstate or overseas who supply workers in Queensland.

Licence holders are required to meet standards, including being a fit and proper person to supply labour, financially viable and compliant with relevant laws.

Users of labour hire must only engage licensed providers. The scheme helps users of labour hire and workers find a licensed labour hire provider through a register. There are strong penalties for operating without a licence and for using an unlicensed provider.

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A labour hire provider is a person who, as part of carrying on a business, supplies labour hire workers to do work for another person or business (the labour hire user).

  • a contractor who supplies workers to a farmer or fruit grower to pick produce for the farmer or grower
  • a group training organisation or principal employer organisation that supplies an apprentice or trainee to a host employer
  • an employment agency that on-hires temporary administration staff to a business.

Further information for labour hire providers, including who needs to apply for a licence and obligations under the scheme, is available on the I provide labour hire page.

Any person or business who engages a labour hire provider to supply them with labour is a user of labour hire. This includes engaging an intermediary to engage a labour hire provider to supply labour. In this example both the person who engages the intermediary, and the intermediary are users of labour hire.

Other terms which might indicate a user of labour hire services include 'host employer' and 'client'.

If you have a worker or workers doing work for you or in your business that you do not directly employ, you should carefully consider if these arrangements are labour hire.

Further information for labour hire users, including obligations under the scheme, is available on the I use labour hire providers page.

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Labour hire providers

The scheme recognises responsible labour hire providers through granting a licence. The scheme ensures high standards for labour hire are maintained by requiring all labour hire providers meet their legal obligations.

Labour hire providers who do not comply with the Act are liable for a range of penalties. These include fines, suspension or cancellation of a licence and imprisonment.

The most serious offences for labour hire providers are:

  • providing labour hire services in Queensland without holding a licence
  • entering into avoidance arrangements.

These offences have a maximum penalty of three years imprisonment, or a fine.

Licensees also have other general obligations including:

  • compliance with legal obligations under relevant laws
  • providing six monthly reports on their activities
  • reporting prescribed changes in circumstances within 14 days
  • producing a copy of a licence if asked by an inspector, worker or other person
  • not transferring a licence to another person.

Failing to comply with these obligations may result in fines and/or a review of a licence where a suspension, cancellation or conditions may be imposed.

For further details refer to the Penalties and offences page.

Users of labour hire

Users of labour hire services are obligated to only use licensed labour hire providers. It is an offence to enter into:

  • an arrangement with an unlicensed labour hire provider
  • avoidance arrangements.

These offences have a maximum penalty of three years imprisonment or a fine.

The scheme helps users of labour hire and workers find a licensed labour hire provider through the labour hire licensee register.

Avoidance arrangements

An avoidance arrangement is an arrangement that is designed to circumvent or avoid the requirement to have a licence to supply workers. The offence occurs if the person involved knows or should reasonably know that it is an avoidance arrangement.

An example of an avoidance arrangement is if a user of labour hire enters into an arrangement for the supply of workers and agrees to not characterise the arrangement as labour hire.

The scheme imposes strong penalties to deter labour hire providers and users from entering into arrangements which might benefit one or both and which undermines the integrity of genuine labour hire arrangements.

Details of Penalties

Offence Maximum penalty
Providing labour hire services without a licence. Corporation – $378,450 (3000 penalty units)
Individual – $130,439 (1034 penalty units) or three years imprisonment.
Advertising, or in any way representing, that a person provides or is willing to provide labour hire services without a licence. $25,230 (200 penalty units).
Entering into an arrangement with a provider who does not hold a licence to provide labour hire services. Corporation – $378,450 (3000 penalty units)
Individual – $130,439 (1034 penalty units) or three years imprisonment.
Entering into an arrangement with another person (an avoidance arrangement) for the supply of a worker, if the person knows, or ought reasonably to know, the arrangement is designed to circumvent or avoid an obligation imposed by the Labour Hire Licensing Act 2017. Corporation – $378,450 (3000 penalty units)
Individual – $130,439 (1034 penalty units) or three years imprisonment.
Failing to comply with reporting obligations within 28 days after a reporting period for the licensee ends. $25,230 (200 penalty units).
Failing to provide an inspector, worker or another person with a copy of the licensee's licence on request. $12,615 (100 penalty units).
Transferring, selling, disposing of, lending or hiring out a licensee's licence to another person. $25,230 (200 penalty units).
Failing to give the Chief Executive notice of a prescribed change in circumstances of the licensee within 14 days after the change. $25,230 (200 penalty units).
As a client, failing to notify the Chief Executive of an avoidance arrangement as prescribed for in section 90(2). $25,230 (200 penalty units).
Providing false or misleading information to an official. $12,615 (100 penalty units).