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QLD LABOUR HIRE LICENSING BILL TABLED

Sarah Cerché, AREEA Head of Policy

The Queensland Government Finance and Administration Committee’s examination of the Labour Hire Licensing Bill 2017 was tabled this week by chair Peter Russo MP.

The Committee was tasked examining the Bill in accordance with Standing Orders. This included the receiving and considering of written submissions as well as the facilitation of public hearings into the Bill. Forty-one submissions were received and the Committee also received advice from the department about the application of fundamental legislative principles given some of the proposed powers that would be available to the inspectorate under the Bill.

The Bill was introduced despite an inquiry previously conducted by the Finance and Administration Committee making only one agreed recommendation, that was to progress through the Council of Australian Governments the issue of labour hire, including the apparent practice of requiring workers to obtain ABNs and work as contractors rather than employees.

While Queensland is the first state government to propose legislation, as AREEA advised in last week’s update South Australia has indicated that they will introduce legislation as a result of an inquiry conducted in that state. Victoria has also conducted an inquiry into the labour hire industry and appears likely to introduce licensing in some form, although that inquiry report did recommend a targeted licensing regime.

While the federal government currently has legislation before the senate designed to protect vulnerable workers by amending the Fair Work Act 2009, it seems that some state governments have formed the view that this is insufficient.

“The Commonwealth has primary responsibility for industrial matters under the Fair Work regime, hence the policing and licencing of labour hire companies would be far better managed at a national level by the Fair Work Ombudsman,” Mr Russo stated in the report’s introduction.

“I acknowledge the majority of labour hire companies appear to be acting in compliance with their legislative requirements as responsible employers.”

“However, evidence received by the committee during the previous inquiry highlighted concerning incidents of phoenixing, sham contracting, the exploitation and mistreatment of workers, the undercutting of employment conditions, and a range of other illegal or questionable practices.

“There seems to be no evidence to indicate that these practices have ceased since 2016. Accordingly I support the need for the Queensland Government to introduce a labour hire licencing regime, as is proposed by this Bill.”

Despite these comments from the Committee Chair, at 1.5 of the Report, the Committee was unable to agree that the Bill should be passed.

Government members of the Committee in their statement of reservation expressed disappointment that the Committee could not agree that the Bill should be passed and used the opportunity to further advocate for the passage of the Bill.

Mr Russo thanked individuals and organisations who lodged written submissions and participated in the committee’s briefings and public hearings.

AREEA has been actively engaged in the inquiry in Queensland, making a submission on the Labour Hire Licensing Bill 2017 and appearing as a witness in the public hearings held by the Committee.

Click here for further AREEA analysis on this matter. Have any concerns or queries about this inquiry? AREEA’s policy team are here to help. Please visit AREEA’s contact us page, or email [email protected]

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