Labour Hire Update: LHA compliance inspectors conduct workplace checks on workers’ accommodations on a regular basis as part of their program.

The Labour Hire Licensing Act 2018 and the Labour Hire Licensing Regulations 2018 require that any accommodation arranged for workers meet the Labour Hire Licensing Act 2018’s minimum standards. There are also rules regarding accommodation deductions that all providers must follow. A number of providers violated the rules, resulting in inadequate accommodations and unfair wage deductions.

Labour Hire Providers – Must comply or face licencing action, which should be extended to other jurisdictions.

Cases recently imposed by LHA are listed below.

Steve Dargavel: Labour Hire Licensing Commissioner

“If you organise accommodation for your labour hire workers, it encouraged you to ask yourself: would it pass muster? If not, then it’s time to make a change.”

“This case is proof that suitable legislation has the power to effect positive change across industries and workplaces and protect our most vulnerable workers from exploitation.”

“Labour hire providers should view this case as a cautionary tale. When it comes to providers’ legal obligations to labour hire workers, the legislation is clear: providers must comply or face licensing action.”

“A loss of licence is a very real consequence of non-compliance with the Labour Hire Licensing Act 2018.”

Labour Hire Authority News!

MADEC Australia: Labour hire provider agrees to refunds to workers who had been placed in accommodation that did not meet minimum standards.

Victoria’s labour hire authority has imposed licence restrictions on MADEC Australia, requiring it to review and improve the quality of housing it provides or secures for labour hire workers.

MADEC Australia fails to:

• Comply with the Labour Hire Licensing Act 2018’s minimum accommodation standards (the Act).

• Overcrowding was a concern, with many rooms accommodating twice the permitted number of people for their size over a six-month period.

During the investigation, MADEC conceded that:

• They were unaware of these specific minimum accommodation standards, which worried the LHA that other accommodations might be similarly subpar.

• MADEC conducted a voluntary internal review of its worker accommodations and informed the LHA that no other noncompliance was found.

The LHA’s licence conditions are as follows:

• Require MADEC to hire an independent, suitably qualified auditor to conduct an audit of all accommodations provided or procured by MADEC to ensure standard compliance and future compliance.

• MADEC also agreed to reimburse labour hire workers for a portion of the wages deducted for noncompliance with minimum standards.

Steve Dargavel, Commissioner of Labour Hire Licensing, stated:

• MADEC deserves credit for being proactive and cooperating with the LHA’s investigation and decision.

• Appreciation for MADEC’s initiative and cooperation with the LHA’s investigation and decision.

• He stated that prior to the imposition of these licence conditions, MADEC had already paid just under $70,000 to its labour hire workers in recognition of the issues identified.

According to Steve Dargavel:

Failure to comply with legal obligations may result in licence cancellation in some cases. Failure to comply with licence conditions, such as those imposed in this case, may result in the cancellation of the licence.

Mildura compliance inspections find non-compliance with minimum accommodation standards and worker entitlements.

Last month, as part of the compliance program, LHA inspectors visited nine farms and nine worker housing establishments to confirm that labour hire providers:

• were licenced and in compliance with the Labour Hire Licensing Act of 2018. (the Act).

• 13 workers, eight farmers, four providers, and three lodging proprietors were interviewed.

• They also demanded relevant records from farmers and service providers.

Providers and hosts must understand and follow their legal obligations. Failure to do so may result in penalties.

The Yarra Valley and Shepparton joint operations with WorkSafe and the Department of Justice and Regulation in February and March 2022 led to these inspections. Inspectors discovered issues indicating noncompliance with minimum accommodation standards at one house associated with a labour hire provider, including:

• A modified camp stove in the kitchen powered by two stacked gas bottles adjacent to an open flame poses a significant fire safety risk, as does a strong gas odour in the house.

• Overcrowding and possibly illegal construction work, with shared living spaces converted to bedrooms.

• Unsanitary conditions throughout the property.

The LHA is following up on indications of:

• Noncompliance with other legal obligations, such as recent changes to the Horticulture Award 2020’s piecework requirements.

• Failure to withhold tax, pay superannuation benefits or provide pay slips.

• During these inspections, allegedly unlicensed subcontractors were discovered.

Resources:

• the introduction of a minimum hourly wage guarantee in the Horticulture Award 2020 and a requirement to record hours worked by pieceworkers

• changes to the Occupational Health and Safety and Other Legislation Amendment Act 2021 which gives labour hire workers the same rights and protections at their host employer’s workplace as employees of the host.

Scan our QR Code to connect!

Disclaimer:

The information in this post is strictly for informational and educational purposes only and should not be construed as legal advice. It is not intended to express specific opinions about specific cases. Before acting on any of the issues discussed in this post, seek additional advice. The information provided should not be relied on for any purpose other than to assist you in understanding how Workers’ Compensation insurance works. It is for illustrative purposes only and My WorkCover Solutions Pty Ltd does not accept liability for any loss or damage suffered by any person resulting in any way from the use of or reliance on, the information provided. The information in this article is believed to be correct as of the date of publication. However, changes in the applicable laws may have an impact on the accuracy of the material. This article contains general information that is not tailored to any specific person’s situation. This publication may contain information that relates to the regulation of Workers’ Compensation insurance in your State or Territory. To ensure you comply with your legal obligations, we would recommend you refer to the appropriate legislation as currently in force in the State or Territory where you conduct your business. You can find up-to-date legislation by visiting each state’s WorkCover Authority website, alternatively, contact myWorkCover for updated information.

Updated 29 July 2022