Edition #2

November 2017

Changes affecting the labour hire industry in Queensland

Important for:

  • Queensland labour hire providers and those that contract with them.

Legal developments affecting labour hire that elevate the importance of revisiting contracts and insurance programs

In the below downloadable article, we consider the implications of recent regulatory and common law developments for labour hire providers, principals and host employers.

Things you need to know

Changes in the regulations and common law affecting labour hire companies

There have been a number of recent developments with significant implications for labour hire companies and those who contract with them:

  • Regulatory changes:
    • the passing of the Labour Hire Licensing Act 2017 (Qld) (LHL Act) – details of the LHL Act were discussed in McCullough Robertson’s earlier articles on 5 June 2017 and 7 September 2017, and
    • the passing of the Work Health and Safety and Other Legislation Amendment Act 2017 (Qld) (WHS Amendment Act) – details of the WHS Amendment Act were discussed in McCullough Robertson’s earlier articles on 25 August 2017 and 23 October 2017.
  • Workers’ compensation:
    • the introduction of ‘black lung’ legislation known as the Workers’ Compensation and Rehabilitation (Coal Workers’ Pneumoconiosis) and Other Legislation Amendment Act 2017 (Qld) (CWP Act) – details of the CWP Act were discussed in McCullough Robertson’s earlier articles on 28 June 2017 and 12 September 2017, and
    • ongoing workers’ compensation premium pressures.
  • Common law liability, the prevalence of contractual indemnities and the contractual requirement for labour hire to insure for hosts or principals.

What you need to do

Review of contracts and insurance

At a minimum, labour hire providers and those who contract with them must:

  • ensure proper registration of labour hire providers and consider exposure in the event the legislative requirements for registration are not met, and
  • urgently review all contracts and insurance programs in place to ensure there is insurance in place that responds to:
    • black lung legislation
    • charges for industrial manslaughter introduced under the WHS Amendment Act, and
    • contractually assumed liabilities (this is equally important for companies benefitting from a contractual indemnity, as without proper insurance in place, the indemnity may not able to be effectively enforced).

In the full article, we have highlighted the contractual and insurance solutions that McCullough Robertson and insurance brokerage Allegiant IRS can assist your business with in order to best manage both emerging and ongoing risks in the face of increased regulation in the labour hire industry and the prevalence of contractually assumed liabilities, such as:

  • contracting pillars training
  • statutory liability insurance, and
  • public liability insurance that:
    • responds to contractual risks, and
    • extends cover to principals and host employers.

Please click here to download the full article.