Automatic Mutual Recognition (Victoria) (Exemption—Labour Hire Licensing) Declaration 2022

Administered by Department of Employment and Workplace Relations

Legislation au F2022L00800 In force Legislative Instrument

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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.

Overview

The Automatic Mutual Recognition (Victoria) (Exemption – Labour Hire Licensing) Declaration 2022 is a legislative instrument made under section 42S of the Mutual Recognition Act 1992 (the Act) by the Commonwealth Minister for Industrial Relations. The Act was enacted in 1992 by the Commonwealth Parliament to facilitate the automatic mutual recognition of occupational registrations across Australian states and territories, aiming to ease the burden on individuals who wish to practice their profession in a state other than where they are registered. The Declaration serves as an exemption to the Act's automatic mutual recognition provisions for labour hire licensing in Victoria, recognising the distinct regulatory framework and standards in Victoria that necessitate a separate licensing process to protect labour hire workers. This exemption is intended to mitigate risks to the health and safety of workers by ensuring that labour hire providers in Victoria meet the stringent licensing requirements established under the Labour Hire Licensing Act 2018 of Victoria. The exemption is in effect for a period of up to five years, after which it may be reviewed or revoked.

Scope and Application

The Automatic Mutual Recognition (Victoria) (Exemption – Labour Hire Licensing) Declaration 2022 pertains to the application of the Mutual Recognition Act 1992 (Commonwealth) in the context of labour hire licensing in Victoria. This legislation applies to individuals who seek to carry on labour hire services in Victoria. Specifically, it exempts labour hire licensing in Victoria from Automatic Deemed Registration (ADR) provisions, which are part of the Mutual Recognition Act 1992. This means that individuals who wish to provide labour hire services in Victoria cannot rely on ADR and must instead obtain the necessary registration with the local registration authority under the mutual recognition principles or apply for a licence from the Victorian Labour Hire Licensing Authority. The exemption is intended to address significant risks to the health and safety of workers by preventing the erosion of Victoria’s rigorous standards and protections, as established under the Labour Hire Licensing Act 2018 of Victoria. The exemption is geographically limited to Victoria and is in effect for a period of five years, unless revoked earlier. The Declaration provides for the exclusion of labour hire licensing in Victoria from the application of ADR, thereby ensuring that labour hire providers operating in Victoria adhere to the requisite standards to protect vulnerable workers.

Key Provisions

The Automatic Mutual Recognition (Victoria) (Exemption – Labour Hire Licensing) Declaration 2022 (the Declaration) operates under section 42S of the Mutual Recognition Act 1992 (the Act) and commences on 1 July 2022. The Declaration exempts labour hire licensing in Victoria from the automatic mutual recognition (AMR) provisions of the Act. This means that individuals who wish to provide labour hire services in Victoria cannot rely on their registration from another state to operate under AMR. Instead, they must either obtain a local registration in Victoria under mutual recognition principles or apply for a licence directly from the Victorian Labour Hire Licensing Authority under the Labour Hire Licensing Act 2018 of Victoria. The obligations imposed by the Declaration are primarily on individuals and entities wishing to provide labour hire services in Victoria. These parties must obtain a labour hire licence from the Labour Hire Licensing Authority in Victoria if they wish to operate there. They cannot rely on their registration from another state to provide services under AMR. This requirement ensures that all labour hire providers operating in Victoria meet the state's rigorous licensing standards and protections for workers, which are intended to prevent exploitation and abuse. The Declaration also imposes obligations on the Labour Hire Licensing Authority in Victoria, which must administer the licensing scheme and enforce compliance with the Labour Hire Licensing Act 2018. The Authority is tasked with ensuring that all labour hire providers meet the necessary standards before being granted a licence to operate in Victoria. The potential consequences for non-compliance with the Declaration are significant. Under the Act, any person or entity that provides labour hire services in Victoria without the required local registration or licence may face penalties. These penalties can include fines and, in severe cases, criminal charges. The specific penalties are not detailed in the Declaration but are determined by the relevant state or territory laws, which may include provisions for fines up to several thousand Australian dollars and potential imprisonment for serious breaches. The exemption is necessary to protect vulnerable workers from exploitation and to maintain the integrity of Victoria's labour standards.

Legal classification tags

Area of Law
Labour Law
Occupational Health and Safety
Instrument
Declaration
Concepts
Exemptions & Exclusions
Regulatory Standards
Consultation Requirements
Catchwords
Labour Hire Licensing

Interactions

Authorises

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.