Business in Australia:: Mandatory for Farm/Factory Labour Supply Business! Labour Hire Licence
Hello everyone, this is P&C Tax Professionals!
Recently, we received several enquiries regarding the setting up of a labour hire business that supplies labour to Australian factories and farms.
For your reference, please refer to the following Link for the Queensland Labour Hire Licensing:
According to the Labour Hire Licensing Act 2017, in Queensland, you must obtain a Labour Hire Licence if you are engaged in a business (personnel supplier) that supplies labour to other businesses including but not limited to farms, factories, tiles, cleaning, etc.
Basically, the Labour Hire Business can be viewed as a business that finds or recruits employees/workers by posting a job advertisement online and these businesses then provides the recruited workers to other markets such as farms, factories, etc. This can be viewed as an effort by the Queensland Government of Australia to protect the human rights of the workers.
If you conduct such business without a labour hire licence, you will be faced with huge fines as set out below.
Labour supply contractor and their associated business (i.e. the company that is receiving the employees) would each be charged with a fine of:
For legal entites/corporations: Up to a maximum amount of $400,350
For individual/sole-traders: Up to a maximum amount of $137,987.30 or sentenced to three years in prison.
It can also be considered an offence for you to advertise online and/or offline without a labour hire licence, in which case you will be fined up to $26,690.
For workers/employees who sign contracts with a non-certified individual or business:
For legal entites/corporations: Up to a maximum amount of $400,350
For individual/sole-traders: Up to a maximum amount of $137,987.30 or sentenced to three years in prison.
Upon signing the contract, the contractor must show their certificate to the employee.
Therefore, the employees must not sign the contract if the contractor fails to show their licence.
Employees must thoroughly check whether their contractor is a registered company and whether they are licensed prior to signing the contract.
For this reason, it is now mandatory to have a Labour Hire Licence in order to run a labour hire business.
Unfortunately, the process of obtaining a Labour Hire Licence is more complicated than one might expect. First of all, the individual must have a good reputation which may involve lodging your income tax return in a timely manner as well as having no criminal offence records. In addition to this, each of the applicants or proposed nominated officer or executive officer (if the applicant is a corporation) must also demonstrate that they are a fit and proper person to provide labour hire services. In order for the individual, partnership, or corporation to apply for the licence, the business must also be financially transparent in the sense that it is able to pay its employees' salaries in a timely manner, without delay.
Furthermore, there are a lot of supporting documentations and accounting documentations that must be filled out and submitted.
Since you need to carefully research and fill out the required documents for submission, we recommend that you consult with your attorney or an experienced accountant before proceeding with your application for the Labour Hire Licence.
If you apply for the certificate through P&C Tax, we can assist you from establishing your corporation to obtaining your Labour Hire Licensing and employee salary management.
If you would like to proceed your application with P&C Tax, please contact us through our official Facebook Page (P&C Tax Professionals - Australia) or via our email address at: pnctax@naver.com.
Thank you and bye for now!
Comments