The Labour Hire Licensing Act 2018 (Vic) received Royal Assent today (26 June) after passing both houses of Parliament last week.
Some parts of the Act come into effect tomorrow. These primarily concern matters to assist setting up the scheme, such as the establishment of the Labour Hire Licensing Authority.
The remainder of the Act will come into operation on 1 November 2019 unless proclaimed earlier.
The state government received the support of two out of the five crossbenchers in the Upper House of Parliament, and the Bill passed with amendments with a 21-19 majority.
AREEA had focused its lobbying efforts on briefing the crossbenchers and urging them to reject the legislation (see related article).
While Jeff Bourman and Daniel Young from the Shooters, Fishers and Farmers Party Victoria, and James Purcell from Vote 1 Local Jobs voted against labour hire licensing, Fiona Patten from Reason Victoria and Rachel Carling-Jenkins from the Australian Conservatives voted in favour.
In supporting the legislation, Ms Patten said that she had taken very seriously the information provided by interested organisations in relation to support for, or difficulties with, the legislation, however appeared to be particularly concerned with instances of worker exploitation.
“In weighing up the pros and cons of doing nothing or taking this proposed scheme on board, I have concluded that I would be in favour of this bill” she said.
Ms Carling-Jenkins was less conflicted, saying the legislation is “an essential component of an effective scheme to prevent human trafficking for labour, and as an abolitionist, I welcome this bill and give it my support.”
Amendments
Craig Ondarchie, Shadow Minister for Investment and Jobs put forward a number of amendments, two of which gained crossbench support and were accepted by the Upper House.
- Union officials not permitted to assist an inspector
The Bill in its original form allowed an inspector employed for the purposes of the Act to seek the assistance of ‘any person’, including allowing access to premises.
The amendment makes clear that union officials or anyone who has been refused an entry permit under the Fair Work Act cannot become an assistant to an inspector.
The Labor Party said that the ‘assistant’ provision was intended to apply to translators, police and forensic specialists.
However, Mr Ondarchie maintained the amendment is necessary to avoid giving others access to the premises and records they would not normally be entitled to.
“We have already seen issues with people and unions trying to use occupational health and safety legislation to avoid entry permit laws and to allow onto workplaces union officials who have been banned due to thuggish and illegal behaviour” he said.
- Recognition of LHL licences in other states
The Bill in its original form allowed the authority to dispense with some requirements for an interstate licence, but still required a provider with an interstate licence to apply for a Victorian licence and then go through all of the processes other than those the Victorian authority chooses to exempt it from.
The amendment provides that the Mutual Recognition Act 1992 (Cth) applies, and a Note under the provision provides “a person who holds the right to provide labour hire services in another State or a Territory will be, on notifying the Authority, entitled to be registered as a licensed labour hire provider in Victoria.”
Lower House approves amended Bill
The Bill returned to the Lower House for a vote on its amended form, where it passed due to the government’s majority.
In casting his vote against the Bill, Shadow Minister for Industrial Relations, The Hon. Robert Clark MP, echoed sentiments in AREEA’s previous submissions and briefings that the licensing scheme adds burdens to highly compliant and well paid industries such as the resources and energy industry.
“Labour hire providers who generally provide many well-educated, well-informed and technical staff to operate in mining and other industries around Australia will be put in the same camp as those who might be involved in human trafficking and some of the dodgy practices that occurred a few years ago in the horticultural sector,” he said.
The government indicated that the development of regulations, including to limit the scope of the scheme, is quite well advanced and will be released shortly.
Once released, AREEA will examine the Victorian regulations alongside those in Queensland and South Australia and provide to interested AREEA members an analysis of alignment and contrasts.
AREEA is currently assisting members with various enquiries about labour hire licensing. This includes through the specialised workplace relations advice of AREEA’s expert Consulting team and the ongoing industry lobbying efforts of the Policy & Public Affairs Team. For advice and/or to get involved with AREEA’s advocacy, contact your local office.
