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Penalties and offences

The offences and associated penalties under the Labour Hire Licensing Act 2017 (the Act) are:

Note: this is not an exhaustive list of offences and is subject to change in legislation. The following is based on penalty unit value from 1 July 2017.

Offence Maximum penalty

Providing labour hire services without a licence.

Corporation  –  $378,450 (3000 penalty units)

Individual  – $130,439 (1034 penalty units) or three years imprisonment.

Advertising, or in any way representing, that a person provides or is willing to provide labour hire services without a licence.

$25,230 (200 penalty units).

Entering into an arrangement with a provider who does not hold a licence to provide labour hire services.

Corporation  –  $378,450 (3000 penalty units)

Individual  – $130,439 (1034 penalty units) or three years imprisonment.

Entering into an arrangement with another person (an avoidance arrangement) for the supply of a worker, if the person knows, or ought reasonably to know, the arrangement is designed to circumvent or avoid an obligation imposed by the Labour Hire Licensing Act 2017.

Corporation  –  $378,450 (3000 penalty units)

Individual  – $130,439 (1034 penalty units) or three years imprisonment.

Failing to comply with reporting obligations within 28 days after a reporting period for the licensee ends.

$25,230 (200 penalty units).

Failing to provide an inspector, worker or another person with a copy of the licensee's licence on request. 

$12,615 (100 penalty units).

Transferring, selling, disposing of, lending or hiring out a licensee's licence to another person.

$25,230 (200 penalty units).

Failing to give the Chief Executive notice of a prescribed change in circumstances of the licensee within 14 days after the change.

$25,230 (200 penalty units).

As a client, failing to notify the Chief Executive of an avoidance arrangement as prescribed for in section 90(2).

$25,230 (200 penalty units).

Providing false or misleading information to an official.

$12,615 (100 penalty units).

Suspensions and cancellations

The Chief Executive may suspend a licence if a licence holder has not complied with their obligations. The decision to suspend a licence maybe made when:

  • a condition of the licence has been contravened
  • a relevant law has been or is being contravened
  • a relevant person is no longer a fit and proper person to provide labour hire services
  • a report has not been submitted as required by the Act
  • materially incorrect or misleading information has been provided in a report or a licence application, renewal or restoration
  • the business is no longer financially viable.

The Chief Executive will give the licensee an information notice to suspend a licence.

The Chief Executive may cancel a licence after the licensee has been given a show cause notice and the licence holder has not complied with their obligations. The decision to cancel a licence may be made if:

  • a relevant person is no longer a fit and proper person to provide labour hire services
  • the licensee is an insolvent under administration
  • the licensee has been wound up or deregistered
  • a condition of the licence has been contravened
  • a relevant law has been or is being contravened.

Relevant laws

The Act requires that as a condition of holding a labour hire licence, the licensee is compliant with relevant laws.

The Act does not impose penalties for breaches of other laws imposing legal obligations on the licensee. However, the Office of Industrial Relations (OIR) works with other enforcement agencies to ensure matters of alleged non-compliance are investigated. If a provider is found to have breached a relevant law, OIR may take action to suspend or cancel a licence.


Last updated 04 April 2018