Queensland's labour hire licensing scheme has prosecuted 26 companies and individuals for breaches of the Act with fines totalling $1.895m imposed by the courts. Some recent notable prosecutions are detailed below, reflecting the effectiveness of the scheme in enforcing its legislation. We have several further potential prosecutions currently under consideration.
First prosecution in Australia under labour hire licensing laws for entering an avoidance arrangement
Following a major investigation in the North Queensland region, the Queensland Labour Hire Licensing Compliance Unit (LHLCU) successfully prosecuted three individuals for breaches of the Labour Hire Licensing Act 2017 (the Act) on 17 May 2024.
The court action followed an initial complaint received from a farm representative, which led to the director of North Farming Pty Ltd (North Farming) being charged with two offences against section 12 of the Act – entering into an avoidance arrangement for the supply of a worker, designed to circumvent the operation of the Act. It was alleged that the director had entered into an arrangement with another individual for the supply of workers to farms. The prosecution alleged that the arrangement was designed to avoid the obligation for North Farming to hold a labour hire licence in accordance with the Act.
The director was placed on a probation order for a period of three years (the longest period a probation order can be made) and ordered to pay professional and court costs. It is the first successful prosecution in Australia under labour hire licensing laws for entering an avoidance arrangement.
Two further individuals, having aided the commission of the offence, were also dealt with on the same day. One individual was charged with one offence against section 10 of the Act for providing labour hire services without a licence and received a fine in the amount of $60,000. The second individual was charged with three section 10 offences and received a fine in the amount of $150,000.
Both individuals were ordered to pay professional and court costs. Further, the Magistrate ordered that the individuals pay their fines within a twelve-month period and if in default of payment in that time, they were to be imprisoned for a period of six months.
In sentencing, the Magistrate noted that there was prevalence of this type of behaviour within the area which bought disrepute to labour hire providers. The Court noted the behaviour of the defendants to be ‘deliberate’ and specifically commented that the two individuals who had been charged having aided the commission of the offence were aware of the Act and the requirement to hold a labour hire licence.
