Case update on the Labour Hire Licensing Act 2018 (Vic).
The Labour Hire Licensing Act 2018 (Vic) (LHL Act) is a relatively new piece of legislation. As such, there is still a significant uncertainty surrounding this legislation. As it is with most new pieces of legislation, further clarification in relation to the LHL Act will arise over time, as a number of test cases are run through the Courts.
A key question is whether or not work arrangements are labour hire, for the purpose of the LHL Act. There have been two recent High Court cases that are highly relevant to this question.
In one of those decisions the High Court found that, despite the work relationship being expressed as being labour hire and despite the Agreements being drafted to reflect a labour hire arrangement, the substance of the relationship was in fact one of employer and employee. This decision on so-called “sham labour hire arrangements” has provided clarification on a number of factors that need to be considered when assessing when arrangements are genuine labour hire arrangements. Further, this decision is likely to be quoted and applied on an ongoing basis moving forward.
Our Commercial Team is happy to assist you with classifying the work relationship in your organisation. If you require any assistance or have any queries on the recent decisions, please feel free to contact our Commercial Team or Patrick Toscano on (03) 9739 7377
Written by RNG Lawyers Associate and Commercial solicitor, Patrick Toscano