EXPLANATORY STATEMENT
Mutual Recognition Act 1992
Automatic Mutual Recognition (Victoria) (Exemption – Labour Hire Licensing) Declaration 2022
This explanatory statement provides notes on the operation of the Automatic Mutual Recognition (Victoria) (Exemption – Labour Hire Licensing) Declaration 2022 (the Declaration). The specific provisions in the Declaration are outlined in Attachment A.
The information in the explanatory statement is an aid to understanding the Declaration and should not be substituted for the Declaration.
Context and purpose
Part 3A of the Mutual Recognition Act 1992 of the Commonwealth (the Act) provides for the automatic mutual recognition of occupational registrations (AMR). AMR provides an entitlement for an individual to carry on an activity in a second State, under the registration covering the activity in their home State through Automatic Deemed Registration (ADR).
Part 3A of the Act provides for the making of declarations that exclude certain registrations from ADR for a period of up to 5 years where significant risks arise.
The Legislation Act 2003 of the Commonwealth provides for the making of legislative instruments.
Summary
Through this Declaration, the Minister has exempted labour hire licensing in Victoria from the application of ADR for five years[1].
Consultation
Victoria consulted key stakeholders involved in the labour hire industry. Victoria also consulted with the Labour Hire Licensing Authority who licenses labour hire providers under the Labour Hire Licensing Act 2018 of Victoria.
The Minister is satisfied that the consultation undertaken is appropriate and practical for the purposes of making the Declaration. The consultation drew on the knowledge of subject matter experts.
Attachment A
Details of the Mutual Recognition (Victoria) (Exemption – Labour Hire Licensing) Declaration 2022
Section 1 – Name
This section provides that this Declaration is to be cited as the Automatic Mutual Recognition (Victoria) (Exemption—Labour Hire Licensing) Declaration 2022 (the Declaration).
Section 2 – Commencement
This section provides the date on which the Declaration comes into operation.
The Declaration commences operation on 1 July 2022.
Section 3 – Authority
This section outlines the authority through which the Declaration is made.
The Declaration is made under section 42S of the Mutual Recognition Act 1992 of the Commonwealth.
Section 4 – Simplified outline of the instrument
This section explains that the purpose of this instrument is to exempt labour hire licensing from the ADR provisions of the Act, the application of the exclusion in Victoria and the period of the exemption, being five years.
Section 5 – Definitions
This section provides, for the purposes of this Declaration, self-explanatory definitions of the following terms:
- The Act is defined in this section as meaning the Mutual Recognition Act 1992 of the Commonwealth
Section 6 – Exemptions
The Declaration is made in accordance with paragraph 42S(1)(a) of the Act. It provides that labour hire licensing under the Labour Hire Licensing Act 2018 of Victoria is excluded from ADR. This means that an individual cannot provide labour hire services in Victoria relying upon ADR pursuant to Part 3A of the Mutual Recognition Act 1992 of the Commonwealth.
If an individual seeks to operate as a labour hire provider in Victoria, the individual must first obtain that registration with the Local Registration Authority (the Labour Hire Licensing Authority) under mutual recognition principles pursuant to Part 3 of the Mutual Recognition Act 1992. Alternatively, an individual may apply for a licence from the Victorian Labour Hire Licensing Authority under Part 3 of Labour Hire Licensing Act 2018 of Victoria.
Section 7 – Statement
As required by paragraph 42S(2) of the Act, this section provides a statement explaining the risks which arise if ADR applied to labour hire licensing in Victoria. The statement notes that the declaration is necessary given the significant risks to the health or safety of workers as it raises the risk of eroding Victoria’s rigorous standards and protections for labour hire workers, as established under the Labour Hire Licensing Act 2018 of Victoria. The statement explains that there are rigorous standards to be met to obtain a labour hire licence in Victoria. It also notes that the Labour Hire Authority is an independent statutory authority with functions to administer the licensing scheme, and strong compliance and enforcement powers. The statement notes that the exemption is necessary to protect vulnerable workers from being exposed to abuse and exploitation as was revealed in the Victorian Inquiry into Labour Hire and Insecure Work established under the Inquiries Act 2014 (Victoria). The exemption will ensure that labour hire providers that operate in Victoria meet the requisite standards to obtain a licence, to protect those vulnerable labour hire workers.
Tim Pallas, MP
Minister for Industrial Relations
[1] Unless revoked earlier, the instrument will sunset under section 50 of the Legislation Act 2003 of the Commonwealth after five years (see subsections 42S(5) and (6) of the Mutual Recognition Act 1992 of the Commonwealth). This will generally mean that this instrument will be repealed on the first 1 April or the first 1 October falling on or after the fifth anniversary of the registration of the instrument on the Federal Register of Legislation.