Ai Group welcomed the opportunity to provide a written submission in response to the Australian Government’s National Labour Hire Regulation Consultation Paper.

Ai Group is the main national employer association representing both labour hire providers (LHPs) and users of LHPs (hosts) across diverse industries. Ai Group represents small, medium and large LHPs and hosts.

The vast majority of LHPs are reputable and compliant with workplace laws. Many providers offer sophisticated compliance technologies including associated HR and workplace relations services to support the engagement of the people they supply.

Yet the premise of national licensing is that LHPs universally, are incapable, or less likely to comply with workplace laws such that a licence is needed to operate. Such a lopsided view on the industry is one Ai Group opposes.

The Consultation Paper proposes the creation of a single national labour hire licensing scheme that would take over from existing state and territory labour hire licensing schemes. It is proposed that the scheme would cover both traditional triangular arrangements and workforce contracting arrangements and would be universal in coverage, applying to all entities and persons, regardless of industry, who would meet the definition of a "labour hire provider".

Ai Group is strongly opposed to the creation of the Consultation Paper’s proposed scheme.

Creating such a scheme would inappropriately regulate a vast array of commercial services as well as replicate many of the well-known problems experienced under various state and territory labour hire licensing laws.

A single national scheme as proposed, would not outweigh the adverse economic and financial consequences of excessive and disproportionate regulation to a significant number of Australian businesses and commercial arrangements, including with governments. It would drive up costs of many services in the community, including those that are government funded such as community care, health and aged care services; a sector in which labour hire used.

The relationship between the proposed scheme and the Government’s proposed 'Same Job Same Pay' workplace relations reforms currently open for consultation is one that also needs to be examined.

To the extent that the two policy initiatives are being pursued by the Government, Ai Group considers that the stated purpose of national labour hire licensing and 'Same Job Same Pay' in fact differ and should therefore be treated as separate policy initiatives, notwithstanding that there may be some overlap between the two. Ai Group proposes to be heard on this issue further once more detail from the Government is released.