ACT Labour Hire Licensing: Could your business require a License?

Many construction businesses assume labour hire licensing only applies to dedicated labour hire agencies. However, the definition of labour hire services under the Labour Hire Licensing Act 2020 (ACT) can extend to a broader range of workforce arrangements than many businesses realise. The ACT scheme requires labour hire providers to hold a licence before supplying workers and applies to both ACT-based and interstate businesses supplying workers into the Territory.

Members should consider the following questions:

• Does your business supply workers to another business for a fee or other arrangement?
• Do those workers perform work under the direction or supervision of the host business rather than your business?
• Does your business provide workers into the ACT, even if you are based in another jurisdiction?
• Have you reviewed whether any exemptions under the ACT legislation apply to your circumstances?

The ACT labour hire licensing framework is supported by the Labour Hire Licensing Regulation 2021 (ACT) and administered by WorkSafe ACT. Businesses found to be operating without a required licence, or engaging unlicensed providers, may face significant compliance risks.

If your business uses non-traditional workforce arrangements, subcontract labour, or supplies workers to other entities, now is an appropriate time to review your obligations.

When determining whether or not a labour hire service is being provided, consideration must also be given to whether the worker being provided would fall within the definition of a worker set out in section 8 of the Act. If the workers fell within any of the classes of workers outlined in the Labour Hire Licensing (Exempt Workers) Declaration 2021 (No 1), a labour hire licence would not be required.

Members seeking assistance should contact the Advisory Team or consult WorkSafe ACT to determine whether a labour hire licence may be required.