Posted on 21. May, 2014 in Election Media Release

A Victorian Labor Government will create a licensing system for labour hire companies to ensure that only properly accredited operators can provide third-party labour (employees) to Victorian workplaces.

Labor will require labour-hire companies to be licensed before they can engage workers and deploy them to host employers.

Any labour-hire company seeking a licence will need to demonstrate capacity to comply with their payroll and superannuation obligations.

This policy will ensure that labour hire companies are accountable to basic employment standards and will prevent ‘phoenix’ activities where a company transfers assets from an indebted company to a new company to avoid paying creditors, tax or employee entitlements.

Quotes attributable to Mr Andrews:

“The majority of labour hire companies do the right thing but there are some that don’t.

“Labor’s plan will ensure workers are paid appropriately, work in safe workplaces and are protected from rogue companies.”

Quotes attributable to Ms Hutchins:

“This is a completely unregulated industry and Denis Napthine and the Liberals have done nothing to protect employees from dodgy labour hire providers.”

“Labor’s plan will also ensure that companies linked to criminal organisations won’t be licensed and will be shut down.”

Key Facts

• The Australian labour hire industry is worth $6 billion and with over 2000 companies across Australia it provides labour to nearly every sector of the Australian economy.
• Under Labor’s policy compliance with workplace laws will be monitored by the Victorian Government.
• The licensing system will be scoped and designed by a future Labor Government in consultation with industry groups, unions and existing labour-hire companies.

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