• Reminders

Getting the right advice is essential for labour hire providers to meet their legal obligations and avoid costly mistakes.

Professional advice protects providers from the significant risks around non-compliance and represents a good business investment.

Providers may seek advice from professionals such as accountants, tax practitioners, lawyers, and business consultants.

Some providers have been let down by business advisers, including accountants, who lack expertise in labour hire law and workplace relations. It is important to understand what to look for when choosing a business adviser and to know what tools and resources are available.

When selecting a business adviser:

• check they have appropriate licences and registrations for their profession
• look for strong experience in labour hire law and workplace relations
• ensure they are providing advice tailored to your circumstances, not just generic templates
• get multiple quotes to understand the costs – the cheapest may not be the best.

In addition, as a provider it is important to have a basic working understanding of key legislation and obligations for running a labour hire business. This knowledge can assist in knowing what questions to ask and what support will be required from a business adviser.

The Labour Hire Authority (LHA) often sees work produced by business advisers when assessing compliance with workplace and other laws.

Appropriately qualified business advisers will often provide sound advice – supporting applicants and licensees to meet their obligations under the Labour Hire Licensing Act 2018 (Vic).

Unfortunately, not all work by advisers is sound, and this can lead to problems for applicants and licensees in their dealings with LHA and other regulators.

Use of template contracts

One area of concern for LHA is the use of non-compliant template contracts for engaging workers.

Providers should be cautious about using any templates that are not supported by guidance they understand, and ensure they are appropriate for their circumstances.

When LHA assesses licence applications, the applicant must give details of the industrial instruments that determine the wages and conditions of their employees.

Applicants often refer to the appropriate award as the core industrial instrument in licence applications, and some applicants use a contract of employment to supplement it.

Sometimes licence applicants provide LHA with legally non-compliant template contracts, including some that:

• detract from award rates and conditions
• clash with the Fair Work Act’s national employment standards
• seek to displace the applicant’s obligations to meet health and safety laws and migration laws
• impose conditions that would be in breach of discrimination laws – such as the requirement to make reasonable adjustments for workers with disabilities
• misclassify employees as independent contractors
• impose unlawful restrictions on workers seeking other employment.

When this occurs, LHA will usually engage with the applicant and attempt to rectify these problems and bring the contract into line with legal obligations.

However, this can require significant time and effort for an applicant and cause significant delays in processing the licence application – delays and issues that could have been avoided if the applicant had invested in better quality business advice.

Where these issues cannot be resolved satisfactorily, the application will be refused.

LHA has also seen problems arising from providers using generative AI such as ChatGPT to create employment templates. In one example, a template generated through AI incorrectly indicated that workers were only entitled to seven public holidays a year, and that one of Australia’s public holidays is called Independence Day.

Tools and resources

There are several free tools available for business owners to assist them in running a compliant business. Providers should ensure they only use resources from reputable sources – Australian and Victorian Government websites are more likely to provide accurate and up to date information.

Fair Work Ombudsman (FWO)

The FWO provides support, advice and information for employers on employee entitlements and relevant Awards. Use the ‘Find my Award’ tool to find the relevant award for an industry and job title. Visit the FWO website to access the tool.

Industry and employer associations

Industry and employer associations are often able to provide reliable advice where resourced to do so. A list of registered organisations is available on the Fair Work Commission website.

Legal advice

There may be instances where legal advice is required to ensure a business is meeting legal obligations. The Law Institute of Victoria provides information on how to find the right legal advice for your business. Visit the Law Institute of Victoria website.

Upcoming webinar

Accountants and tax practitioners can now register to attend an LHA online information session on Tuesday, 8 April.

The session will help accountants and tax agents understand licence requirements and legal obligations which affect their clients who use, or supply labour hire.

Hosted by Commissioner Steve Dargavel, this session will cover:

• labour hire licensing in Victoria
• determining if your clients need a licence
• applying for and maintaining a licence
• ways to support your client with compliance.

For more information or to register, visit the registration page.