Labour Hire Law Update: Enforcement Postponed

Monday, Feb 18, 2019

The South Australian Labour Hire Licensing Act 2017 (the Act) commenced operation on 1 March 2018, requiring providers of “labour hire services” to be licensed, with the requirement to hold a licence effective from 1 September 2018.

Under the Act unlicensed labour hire providers and their clients, including wineries and grape growers, may be liable for penalties of up to $400,000 and/or 3 year's jail.

Following the 2018 State election the new Liberal State Government has received a number of submissions, including a comprehensive submission from the South Australian Wine Industry Association (SAWIA) calling for the Act to be repealed. 

However, if repeal is not possible then SAWIA’s position is that the Act should be substantially amended, including to provide greater certainty in relation to coverage, to reduce red tape and align penalties under the Act with the lower penalties of other licensing schemes.

To ensure that there is sufficient time for the State Government to consider and properly address the issues raised by the stakeholders, the State Government has made the decision not to enforce the legislation until further notice. 

The State Parliament is currently debating legislation to repeal the labour hire licensing scheme permanently.