Labour hire laws – CBS news

The State Government has received a number of submissions from stakeholders raising various issues in relation to the Labour Hire Licensing Scheme that commenced on 1 March 2018.

Compliance with the Act was planned to commence from 1 September 2018.  To enable proper consideration of the submissions received and to allow sufficient time for the issues raised to be appropriately addressed, the Commissioner has advised that at this stage, Consumer and Business Services (CBS) will not enforce the licensing requirements prior to 1 February 2019.  Therefore, businesses may wish to postpone seeking a licence until further information is available from CBS.

CBS is working to provide further information to industry as soon as possible, following consideration of the issues that have been raised.

Concerns about unscrupulous labour hire providers can be reported as below:

  • Fair Work Ombudsman – To discuss or report concerns including pay, leave, ending employment, discrimination, and sham contracting. Visit the webpage Help us keep workplaces fair
  • Safe Work SA – To discuss or report concerns including safety, inadequate safety training, and worksite accidents. Visit sa.gov.au

 

——————————————————————————————————————————————

The Labour Hire Licensing Act 2017 commenced on 1 March 2018.

Anyone who operates as a labour hire provider in South Australia must be licensed. It will also be unlawful for employers to use the services of an unlicensed operator.

See additional information for labour hire providers including:

  • who must be licensed
  • responsible persons
  • licence criteria
  • fees
  • objections to licence applications.

If you have any queries about labour hire licensing please telephone CBS on 8204 8512.


Applications open soon for labour hire licences – media release

Consumer and Business Services is urging labour hire companies to make sure they apply for a licence by the start of August, ahead of the mandatory licensing system for the sector that comes into effect in September.

Commissioner for Consumer Affairs Dini Soulio said that from September 1, any business that supplies workers to another person and pays the worker (either to cover wages or a part payment) will need to be licensed.

Applications open soon for labour hire licences – media release


Industry warned of potential for criminal law breaches – statement

A real estate agent who allegedly contravened property rules has acknowledged the breach likely occurred. He has provided an assurance that he will not repeat his actions.

The assurance provided by M&G Property Group Pty Ltd trading as Elders Mawson Lakes and its director, Mr Domenico Mastrogiacomo for two contraventions are a timely warning to the real estate industry.

Read the full statement – Industry warned of potential for criminal law breaches (PDF 102KB)

Signed assurance


Commercial property exemptions

Land agents will be exempt from requirements under the Land Agents Act 1994 when acting on behalf of:

  • a large commercial property owner or
  • an affiliated entity.

The exemptions apply whether the land agent is performing duties relating to buying, selling or managing property on behalf of the entity.

The exemptions are exclusive to commercial real estate.  They do not include residential or rural land – eg agricultural or horticultural.

Commercial real estate definitions

A large commercial property owner owns any property that has:

  • an aggregate market value of $10 million or more or
  • an aggregate gross floor area of 10,000 square metres or more.

An affiliated entity in relation to a person means:

  • an entity that is controlled by the person – ie the person can determine financial and operating policies of the second entity or
  • a related entity to a body corporate, such as a director, another body corporate with the same directors or a beneficiary under a trust.

Who exemptions apply to

For the exemptions to apply, the land agent must be performing work on behalf of a large commercial property owner or an affiliated entity of the land agent.

If they do not perform work exclusively on behalf of these entities, they must still hold a registration.

When exemptions commenced

The exemptions, through the Land Agents (Simplify No 2) Variation Regulations 2017 commenced on 1 November 2017.

Benefits

Some transactions relating to purchasing, selling or managing land or business fall outside the original intent of the Act.  For example, a large shopping centre managing and leasing its own stores or a private sale, such as a once-off sale of a residential home or office building.

The development of more complex organisational corporate structures have led to increased regulatory burden. The commercial property sector exemptions removing the regulation of affiliated entities that do not require protection from themselves and large commercial property owners that do not require protections that are surpassed by more complex legal and contractual arrangements.

Examples of exemptions

A large international conglomerate is seeking to invest and undertake development in the central business district, which involves the sale and purchase of certain land and business. The entity contracts a third party with which it has long standing and reputable dealings with internationally.  Under these exemptions, the third party will not be required to be a registered land agent to perform real estate work on behalf of the entity, as it meets the threshold of a large commercial property owner.

A commercial shopping centre engages a third party to manage the retailers’ commercial leases. If the shopping centre performed this work, they would not require registration.  However, the owner has engaged a third party – a subsidiary of the owner – to manage the leases.  The third party is not required to be registered as it is an affiliated entity of the owner.  The shopping centre may also be large enough to be deemed a large commercial property owner.

What is needed from 1 November 2017

You are exempt from the requirements under the Act, including registration, only when performing real estate work on behalf of affiliated entities or large commercial property owners.

If you exclusively perform real estate work on behalf of such entities, you may wish to consider whether or not you retain your land agent’s registration. If you surrender your registration and then wish to undertake work for an entity that does not meet the thresholds, you will need to reapply and satisfy the registration criteria.