Facing the New Labour Hire Scheme Head On [Part 1]

As one of Australia’s top cleaning companies, we at Smart Cleaning Solutions understand the importance of ensuring the protection of our workers, and of providing peace-of-mind to the host businesses that enter into arrangements with us. Our clients need to know we are reputable, that we comply with government legislation, and that we treat our workers fairly.

 

The new Labour Hire Scheme in Victoria impacts us directly. As a Labour Hire Provider, we must meet stringent requirements to obtain a licence under the Scheme and to continue our business operations.

We take our obligations extremely seriously. We applied for our licence in July 2019 and have invested heavily in legal advice to ensure we are compliant.

 

What we’ve learned

 

While preparing for the Labour Hire Scheme, we have come to understand the complexities for businesses that arise with the introduction of the Scheme. We have also observed that many businesses are not yet prepared. 

 

For example, there are currently more than 1400 cleaning businesses operating in Victoria. At this time of this article, approximately only 80 cleaning businesses had applied for their labour hire licence. Having had since 29 April 2019 to apply, businesses that haven’t applied are leaving it precariously late to ensure they can legally operate from 30 October 2019.

 

We’ve also noticed a lack of awareness amongst host businesses that engage labour hire providers. For example, some host businesses are currently entering into arrangements/contracts with providers without considering whether or not the provider will hold a licence from 30 October 2019. (Note, pending licence applications can be viewed on the Received Labour Hire Application public register.)

 

It is not acceptable to sign a contact with a provider now, thinking you will escape the laws that take effect on 30 October 2019. As soon as the Scheme launches, any contract you have with an unlicensed provider will not be compliant, and if you proceed to work with them, your business may face maximum penalties of $500,000 or more.

 

There is no way to avoid compliance with the Scheme.

 

Continue reading Part 2: Adapting your business to the Labour Hire Scheme