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Labour hire licensing for electrical contractors

Example Is a licence required?

1. An electrical contractor provides installation, servicing and maintenance of electrical equipment. The company employs tradespeople who go out to clients’ sites to complete installation and maintenance work on behalf of the company. The tradespeople are not hired out to these other businesses. The tradespeople work for their employer, however conduct their work mostly in other business’s premises.

The electrical contractor is responsible for the delivery of this work, including ensuring the tradespeople carry out the work to a competent standard and is responsible for any defective work done by the tradespeople. The tradespeople are not directed by the client/host business in terms of the way in which they carry out the work, though they may liaise with client/host regarding site safety procedures.


In these circumstances no labour hire licence is required.

2. As above, except clients of the electrical contractor may sometimes request that they supply tradespeople to them to cover periods of leave or to supplement their team when the client is very busy. The electrical contractor supplies the client with a tradesperson to do work on a temporary basis. The tradesperson that the electrical contractor supplies to the client is:

  • employed by the electrical contractor and works on a regular and systematic basis
  • has a reasonable expectation that their employment with the electrical contractor will continue
  • primarily performs work for the electrical contractor company, other than as a worker supplied to another person to do work for the other person.



In these circumstances a labour hire licence is not required as the tradesperson supplied is considered to be an in-house employee supplied to do work on a temporary basis.

3. In contrast to example two, the electrical contractor regularly employs more workers than is required to run their business so that they have staff available to be supplied to their clients. In this scenario the electrical contractor is supplying workers to do work. The workers cannot be considered to be in house employees because they do not primarily perform work for the electrical contractor other than as a worker supplied to another person or business.


Where the workers do not primarily work directly for the electrical contractor company and are instead primarily supplied to clients to do work within the client’s business as additional labour, a labour hire licence is required.

Last updated 14 August 2018