SA Labour Hire Licensing Scheme Narrowed


This article applies to all SA organisations.

Labour Hire Licensing (Miscellaneous) Amendment Act 2020 No.18 (SA)

The Labour Hire Licensing (Miscellaneous) Amendment Act 2020 No.18 (SA) (the Amending Act) commenced on 20 July 2020 and has amended the Labour Hire Licensing Act 2017 (SA) (the Act).

Background

The Amending Act is intended to narrow the scope of the labour hire licensing scheme to high-risk industries.

Prescribed work

Pursuant to a repeal and replacement of section 7 of the Act, ‘labour hire services’ no longer includes supply of an individual to undertake ‘prescribed work’.  Prescribed work means:

  • cleaning work;
  • horticultural processing work;
  • meat processing work;
  • seafood processing work;
  • trolley work;
  • any other work of a kind prescribed by the regulations.

The effect of the change is that the labour hire offences do not apply outside of these industries.  However, additional industries may be prescribed by regulation.  (See section 6 of the Act (definitions section) for the detailed meaning of each of the terms used to define ‘prescribed work’.)

Reduction of penalties

The scope for a Court to award a prison sentence against an individual for breach of the Act has been removed. Prior to the amendments, a Court could order an offender’s imprisonment for up to 3 years for certain breaches of the Act.

Act does not apply to certain kinds of arrangements

The amendments ensure and/or clarify that the Act does not apply to the following types of arrangements:

  • individuals supplied to undertake work for a person as the employee or agent of the independent contractor who supplied them;
  • individuals supplied to a host to undertake work that is not part of a business or commercial undertaking of the host;
  • in-house employees supplied to a third person to undertake work on a temporary arrangement (i.e. secondment type arrangements).

Conclusion

Organisations should review the changes to determine whether the Act applies to their activities.


Contact

For further information please contact the Law Compliance team:

Phone: 1300 862 667

Email: info@lawcompliance.com.au