Labour hire licence
The state government has announced its intention to amend South Australia’s labour hire laws to narrow the scope of the existing scheme.
These proposed amendments are still subject to the parliamentary process and consequently, anyone currently captured under the existing scheme must ensure that they are licensed, or have lodged an application by 1 November 2019.
If you provide labour hire services without being licensed, or engage an unlicensed labour hire provider, penalties may apply. However, the uncertainty surrounding labour hire laws is acknowledged and the CBS compliance and enforcement team will take into consideration any reasonable steps that a business has taken to ensure compliance.
More about the licensing scheme and proposed changes - Consumer and Business Services
Who needs a licence?
You will need a licence if:
- your business provides workers to work for someone else in and as part of that other person's business
- you have an arrangement with your workers to supply them to another person to do work
- the workers you provide to the other person are paid, whether in full or in part, by your business - eg even if payment is only for accommodation.
Who doesn't need a licence?
Businesses don't need a licence in circumstances where:
- a service is being provided rather than workers - examples of services
- a genuine subcontracting arrangement is in place - examples of subcontracting arrangements.
Other circumstances where a labour hire licence is not required include where a business provides workers:
- but providing labour hire services is not a core function of the business - eg the core function of a doctor's surgery is to provide health care services, but from time to time a surgery may provide doctors or nursing staff to work in another surgery or hospital
- to another business within the same group of companies - eg parent company supplying workers to a subsidiary company
- to work in another business where both businesses are part of the same franchise
- to work in other businesses that are not part of a franchise but are collectively operating using the same banner, branding or trading name.
A labour hire licence is not required if you:
- hold a current building, plumbing, gas fitting or electrical contractor licence
- hold a current security or investigation agent licence that is not restricted to being an employee only
- operate as a sole trader and the only worker that is provided is the owner of the business who participates in its management and share in any profits
- operate as a partnership with:
- no more than two individuals and
- the worker provided to another business is an owner of the business who participates in the management of the company or shares in its profits.
- operate as a company (body corporate) with:
- no more than two directors and
- the worker provided to another business is a director of the company who participates in the management of the company or shares in its profits.
In some circumstances you can be exempt from the requirement to hold a labour hire licence. To apply for a specific exemption email email@example.com and state the reasons why you think you should be exempt. Exemptions are considered on a case by case basis.
For more detailed information see the labour hire update from Consumer and Business Services.
Before you apply
Generally there must be at least two people who are responsible for the day-to-day management and operation of the business. Consider how many responsible persons you will need for your business, considering the size and scope of your business functions and the number of branches.
Each person must be fit and proper to be a responsible person. You must provide a National Police Certificate (NPC) no more than 12 months old for each nominated responsible person with your application.
See Police clearance on this page.
Each responsible person must be reasonably available to be contacted during business hours.
In your application for a labour hire licence you will be required to provide details of the responsible persons.
If at any time a responsible person is absent from your business you may appoint a substitute for up to 30 days. Once the appointment is made you must notify CBS within seven days of the appointment.
See Changing a responsible person on this page.
You must provide a letter from a chartered accountant, certified practicing accountant or IPA public accountant confirming that you are solvent. The letter must be dated within six months of your licence application.
Knowledge and experience
All applicants (either as an individual or at least one company director) must meet knowledge and experience requirements before they will be granted a licence. Four options for achieving this are outlined below.
If you apply prior to 31 March 2020, and have not completed one of the business pathways, a condition will be placed on your licence. You will need to show evidence of successful completion of one of the pathways by the time of your first renewal (12 months after the date the licence is granted). If you don't provide this your licence may be suspended or cancelled.
If you apply after 31 March 2020, you must have completed one of the business pathways before you can apply.
Successful completion of:
- BSBSMB401 - Establish legal and risk management requirements of small business
- BSBHRM505 - Manage remuneration and employee benefits
Apply for recognition of prior learning if you believe that your past work experience or other qualifications can be assessed against any of the above qualifications. You'll need to contact a Registered Training Organisation to arrange this. Accredited Online Training offers both of the required units.
Successful completion of an accounting, business, economics or human resource-related degree or diploma from Australia or New Zealand. Equivalent degrees or diplomas from other countries may be considered.
The applicant holds a current equivalent interstate labour hire licence.
The applicant is a company listed on the Australian Stock Exchange.
Include a copy of a National Police Certificate (NPC) no more than 12 months old. The police check must disclose all history. Clearances to work with children or vulnerable people are not sufficient.
Apply for an NPC through:
You do not need an NPC if you:
- are a director of a company listed on the Australian Stock Exchange
- have lodged an NPC with CBS within the last year
- are an overseas resident and have never lived in Australia
- have held a licence within the last year and are applying for an equivalent licence.
How to apply
Complete the online application form.
Fees include the application and annual amounts.
Natural person application fee
$590 + $236 (first year's fee)
Body corporate application fee
$590 + $1287 (first year's fee)
Application to change a responsible person
Application to apply for substitute responsible person
Changing a responsible person
Once you have an existing labour hire licence and need to change a responsible person you must:
- complete the online application form to seek approval from Consumer and Business Services (CBS)
- provide with your application a National Police Certificate (NPC) no more than 12 months old for each nominated responsible person (for more details see 'Police clearance' on this page
- pay the application fee.
New responsible persons will still need to be displayed on the objection register for 14 days.
You can appoint a substitute responsible person for up to 30 days if a responsible person will be absent from the business. You must notify CBS within seven days of the appointment.
Renew a licence
Licences are renewed each year. Your renewal date will be 12 months from the grant date of your licence. You will receive your renewal by email. Within 28 days after your renewal date you must:
- pay the renewal fee
- lodge information about your business, as indicated on your renewal notice - eg number of workers, details of the industry in which work was carried out.
If your licence has been surrendered or cancelled, you will need to apply for a new one.
|Application type||Annual fee|
Changes affecting your licence
Notify CBS if you:
Object to an application
All applications for a labour hire licence are published online on the Objection Register. A government agency, local council or industrial association may object to an application if they believe that the applicant, director or nominated responsible person is not fit and proper to hold a licence.
The objection must be in writing and lodged with CBS within 14 days of the licence application being published. CBS will notify the applicant of the objection and allow 14 days for a response.
CBS will consider the objection and the applicant's response when determining whether to grant a licence.