Industries where the supply of workers is taken to be labour hire


Under the Labour Hire Licensing Regulations 2018 (Vic.), there are some circumstances in which an individual is taken to ‘perform work in and as part of a business or undertaking’.

Broadly speaking, the circumstances which are taken to be labour hire, are where a business supplies workers to work:

  • as a cleaner in a commercial premises
  • in the horticultural industry, performing certain activities
  • in a meat manufacturing or processing establishment, performing certain activities or
  • poultry processing establishment, performing certain activities.

This means that if the workers you supply perform work in any of these establishments or industries, you are likely to be providing labour hire services and will require a licence.

Further details are provided below in relation to what kinds of activities are taken to be labour hire in relation to horticulture and meat and/or poultry processing.

Horticulture

If you conduct a business supplying workers to a host to perform any one or more of:

  • picking
  • sorting
  • labelling
  • packing
  • planting
  • thinning
  • pruning
  • spraying
  • repetitive work on automatic, semi-automatic or single-purpose machines or equipment
  • performing basic recording functions related to any of the above work

in relation to fruit or vegetables with the exercise of minimal judgment and under direct supervision, at a place where a business or undertaking is being conducted by the host, then it will be labour hire and you will require a labour hire licence. This applies regardless of whether the worker also does other kinds of work for the host.

Meat processing

If you conduct a business supplying workers to a host to perform any one or more of:

  • killing
  • dressing
  • boning
  • slicing
  • preparation
  • packing
  • processing

at a meat manufacturing establishment or meat processing establishment, then it will be labour hire and you will require a labour hire licence. This applies regardless of whether the worker also does other kinds of work for the host.

Poultry processing

If you conduct a business supplying workers to a host to perform any one or more of:

  • killing
  • processing
  • preparation
  • packing

at a poultry processing establishment, then it will be labour hire and you will require a labour hire licence. This applies regardless of whether the worker also does other kinds of work for the host.

The examples provided are for illustrative purposes only, and do not constitute legal advice. You should consider your particular circumstances when determining whether you require a labour hire licence. If you are unsure, you should seek legal advice.

Scenario 1

Ducks & More Pty Ltd is a poultry processing establishment that takes delivery from the grower farms of ducks that are ready for slaughter and further processing. Ducks & More are expecting a delivery of 1500 ducks on Tuesday. Ducks & More’s most experienced duck boner called in sick on Monday and won’t be in for the rest of the week. Ducks & More contact Quick Fix Pty Ltd, a business that supplies meat and poultry process workers. Quick Fix Work supply John, an experienced duck boner to Ducks & More for the week.

In this scenario:

  • Quick Fix Work is a labour hire provider as it is conducting a business of providing meat and poultry process workers, and then supplies John to Ducks & More to perform poultry processing activities.
  • John is taken to perform work in and as part of Ducks & More’s business as John is performing one or more of killing, processing, preparation and packing in a poultry processing establishment as set out in regulation 5.
  • Ducks & More is a host because Quick Fix Work is providing them with labour hire services, but also Ducks & More are taken to be a business or undertaking of a host because Regulation 5 applies to John.
  • John is a worker as he has an arrangement with Quick Fix Work under which Quick Fix Work supplies him to other persons to perform work, and Quick Fix Work is obliged to pay him for performance of that work.

 

Cleaner in a commercial premises

If you supply workers to work as a cleaner in a commercial premises you are likely providing labour hire services and will require a licence. This is because an individual performing cleaning activities in a commercial premises is taken to perform work ‘in and as part of a business or undertaking’ which is part of the meaning of provides labour hire services set out in sections 7 and 8 of the Labour Hire Licensing Act 2018.

Scenario 1

Building management for a large office building enters into a contract with Best Commercial Cleaners Pty Ltd (BCC) to supply management with cleaners to clean the office building. The cleaners work on rotating shifts to clean the office building during set hours. BCC is a labour hire provider because it is supplying the cleaners to clean commercial premises and requires a labour hire licence.

Scenario 2

A hotel complex needs additional cleaners to clean their hotel rooms. They contact AAA Hotel Cleaning Pty Ltd (AAA) to provide extra cleaners for three weeks to cover the peak period. AAA supplies two cleaners who work alongside the hotel’s employed cleaners. AAA is a labour hire provider because it is supplying the two cleaners to clean commercial premises and requires a labour hire licence.

Scenario 3

Joe is a commercial cleaner and the sole director and operator of Cleanest Cleaner Pty Ltd (Cleanest Cleaner). He has several small commercial cleaning contracts with kindergartens and medical centres. He cleans the kindergartens and medical centres by himself and does not hire any staff. Cleanest Cleaner does not require a labour hire licence because it is a one director company, Joe is the director who participates in the management of the company but also provides himself to do the cleaning work.

Scenario 4

Specialist Cleaners Pty Ltd (Specialist Cleaners) provide specialist cleaning services on site to both domestic and commercial customers. Specialist Cleaners require a labour hire licence because they provide workers to perform activities as a cleaner in a variety of commercial settings. If Specialist Cleaners only provided a domestic cleaning service, they would not require a labour hire licence.

Scenario 5

Flock Poultry Pty Ltd is a poultry processing establishment (as defined in regulation 5) which has a services agreement with Sanitation Ready Pty Ltd for cleaning and sanitation services. Sanitation Ready supplies sanitation crews who are trained in sanitation cleaning methods and chemical handling. Sanitation Ready is obliged to pay their sanitation crews but will invoice Flock Poultry for the services they are providing. Sanitation Ready is not involved in killing, processing, preparation or packing of the poultry.

In this scenario:

  • Although Sanitation Ready is engaged under a contract for services, it is supplying workers to Flock Poultry to perform activities as a cleaner in a commercial premises.
  • An individual performing activities as a cleaner in a commercial premises is taken to perform work in and as part of a business or undertaking which is part of the meaning of provides labour hire services set out in sections 7 and 8 of the Labour Hire Licensing Act 2018 (regulation 5).
  • Flock Poultry is taken to be a business or undertaking of a host because regulation 5(1)(a) applies to the sanitation crew (regulation 6).
  • The sanitation crew are workers as they each have an arrangement with Sanitation Ready under which Sanitation Ready supplies the sanitation crew workers to other persons, under a services agreement to perform work, and Sanitation Ready is obliged to pay the sanitation crew for their performance of that work.

Scenario 6

Aussie Nuggets Pty Ltd is a poultry processing establishment that processes chicken pieces and value-added chicken products such as crumbed nuggets. Aussie Nuggets has a contract for services with Bright White Laundry Pty Ltd for the pickup, laundering and delivery of customer owned uniforms. Every day Bright White Laundry staff pick up Aussie Nuggets’ soiled uniforms and drop off hygienically cleaned uniforms to Aussie Nuggets. Bright White Laundry and Aussie Nuggets agreed on designated pick up and drop off areas at Aussie Nuggets premises, to avoid cross contamination. All laundering takes place at Bright White Laundry’s industrial laundry site.

In this scenario:

  • Although Bright White Laundry is providing a service to Aussie Nuggets, it is not a labour hire provider because it is not supplying workers to work in and as part of the business or undertaking of another person.
  • The Bright White Laundry staff are not workers because they are not performing activities as a cleaner in a commercial premises.
  • All the work is being performed at Bright White Laundry’s premises and their staff are only picking up soiled uniforms from, and dropping off hygienically cleaned uniforms to, Aussie Nuggets.
  • While Bright White Laundry is obliged to pay their own employees there is no arrangement between Bright White Laundry and its employees that Bright White Laundry supply its staff to other persons to perform work.