Labour hire licensing in the mining and resources industry
Example
Is a licence required?
1. An earth moving company is engaged to dig drains on a mine site. The company sends equipment and operators.
The company is responsible under the contract for ensuring the drains are dug according to plans and for rectifying defects in the work and damage caused.
The equipment operators are not supplied to do work for the mine, but rather perform work for the earthmoving company in fulfilling its obligations under the contract.
No.
The earthmoving company is not considered to be providing a labour hire service in this case.
2. A mining operator engages a diesel fitting business to repair a piece of equipment used in the mine. The business sends out a diesel mechanic to carry out the repair and does not carry out any work in the mine outside the scope of the contract. The diesel mechanic performs work for the diesel fitting business.
No.
The diesel fitting business is not considered to be providing a labour hire service in this case.
3. A diesel fitter works in the mine on a rotating shift roster. He works as a contractor using his own ABN. He invoices the mine for his services and pays his own GST, etc.
No.
The diesel fitter is not considered to be providing a labour hire service.
4. As above, except that the diesel fitter has incorporated a company. He is the only director of the company and the only person supplied to work.
Alternatively, a husband and wife are directors of the company and only the husband is supplied.
No.
As the diesel fitter is an executive officer of the corporation and the only person supplied, no licence is required.
5. An engineer is employed by a consultancy firm. The engineer is seconded to work on a project for the mine operator for a specified period to complete the project.
No.
The consultancy firm is not considered to be providing a labour hire service.
6. Peter is employed by M Ltd and provides professional or support services across a group of operations either wholly or substantially owned by M Ltd.
Peter’s services are not provided more broadly to the market. His salary and other benefits are paid by M Ltd which recovers the total cost of his services from the group of operations.
No.
Peter is an in-house employee of M Ltd and only works within a single recognisable business. There is no labour hire arrangement.
7. C Pty Ltd is incorporated by joint venturers to operate a mine/s or a project. C Pty Ltd wholly owns E Pty Ltd, who engages all employees to work in the joint venture mine/s or project. All of the workers’ salaries and other benefits are paid by E Pty Ltd and they only work for the particular mine/s or project.
No.
Since the workers are supplied between entities within a single recognisable business, this arrangement is not labour hire.
8. As above, except that E Pty Ltd also supplies workers to work in other unrelated mining businesses.
Yes.
In this case, E Pty Ltd is a labour hire provider, and requires a licence.
9. A mine needs two underground auto electricians to work on Caterpillar loaders, trucks and drills as their regular workers are on leave. The mine contacts Workforce Providers Pty Ltd, who supply the workers.
These workers do not fit the definition of an in house employee for Workforce Providers Pty Ltd.
Yes.
Workforce Providers Pty Ltd is a labour hire provider, and needs a licence. The mine is a labour hire user, and must ensure they only use licensed labour hire providers.
