Labour Hire Providers Must Notify the Labour Hire Authority of Changes to Directors or Key Personnel

Businesses beware when changing directors or key personnel!  

The Labour Hire Authority (LHA) has commenced legal action in the Supreme Court against a labour hire provider after multiple director changes.  

A Keysborough-based horticulture labour hire provider allegedly made numerous changes to company directors and secretaries without notifying the LHA, including ones that were not ‘fit and proper’. 

Monorom Labours Power Pty Ltd allegedly failed to notify LHA: 

  • Of multiple changes in company directors and secretaries – a breach carrying maximum penalties exceeding $30,000 for a company and $7,500 for an individual 

  • That one director and secretary was not a fit and proper person – a breach carrying maximum penalties exceeding $600,000 for a company and $150,000 for an individual 

Read more about the prosecution below: 

Notify the LHA of Changes in Relevant Persons 

Under the Act, providers must notify the LHA of changes to directors and other key personnel. Relevant persons are assessed against a ‘fit and proper person’ test as part of the license application process. 

“Ensuring we have fit and proper people running Victorian labour hire companies helps to protect workers and improve the industry’s integrity.” 
— Labour Hire Licensing Commissioner, Steve Dargavel 

Host Companies, Watch Out for Illegal Pheonix Activity  

Do you host labour hire workers?  

If so, beware of the following in labour hire providers: 

  • Changes to company directors 

  • Changes to company name 

  • Changes to ABN 

Especially in cases where the contact people remain the same, the above changes may indicate illegal phoenix activity. This is ‘where a business is wound up or abandoned to avoid debts or obligations, then continues under a new business identity’ (LHA).  

Often, it results in loss of wages and entitlements to workers and loss of revenue for suppliers. It is also unfair to the host companies.  

To protect your business from illegal phoenix activity, hosts should look out for: 

  • Quotes lower than market value 

  • Company directors previously involved with liquidated entities 

  • Requests for payments to a new company 

  • Changes to a company's directors and name, while the manager and staff remain the same 

Why Risk Non-Compliance? 

The licensing laws and schemes vary state-by-state. With different submission processes and requirements, applying for licenses can be frustratingly complex.  

Certex’s Labour Hire Licencing Support can help businesses carefully review the requirements expected of them under the various state-based legislation to ensure they are well-prepared to proceed with the licensing process.  

As compliance and labour hire experts, we can guide your business through the relevant labour hire licencing preparation, allowing for a seamless and worry-free application process. 

Contact us today or click below for more information. 

Alicja GibertLHL