Frequently Asked Questions (Issue 107)

Do we need to register as Labour Hire Providers?

Andrew Lumb from Nevett Ford Lawyers has provided a response for CMPA members about the changes to the Labour Hire Licensing Act. The Act defines a provider of labour hire services as a person who in the course of conducting a business supplies one or more individuals to another person (called a host) to perform work in and as part of a business or undertaking of the host. A person providing labour hire services must hold a licence under the Act. This is obviously very general and on the face of it can catch a large variety of situations. However, various published guidelines suggest criteria that amongst other things include whether or not the work is a specialised service, whether the work is a key function of the host business, and whether the work is supervised and managed by the host.

The example on which advice was sought involved excavation work being done by a family member and trucks being hired to a family member. The excavation work seems clearly to be work of a specialist nature, and no different form hiring any excavation contractor. Similarly, the hiring of someone’s trucks seems to be no different from engaging owner drivers, as is routinely done by extractive businesses, often where the owner driver might have more than one truck. The mutual arrangement with another quarry to assist in delivering material for a contract, and vice versa, seems to be nothing more than a loose and ad hoc subcontract arrangement.

Essentially all these arrangements seem to be ad hoc and of a contractual or sub-contractual nature. I do not think that registration under the Labour Hire Licensing Act is required however, it is not possible to generalise and each case has to be assessed on its facts.

To ask a question that could be shared amongst all members in the association please contact the CMPA:
Phone: 03 5781 6055
Fax: 03 5782 2021
Email: enquiries@cmavic.asn.au

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