AVOIDING THE ‘SLEEPER ISSUE’
Ontime Delivery Solutions says the ‘sleeper issue’ is important to consider when outsourcing
Companies which outsource services and talent need to ensure they aren’t on the wrong side of a ‘sleeper issue’ in subcontracting labour, which can potentially incur massive penalties both for individuals and companies, says Ontime Delivery Solutions.
Ontime Delivery Solutions Chief Executive Officer, Walter Scremin, said there’s one particular detail which is easily overlooked yet must be accounted for when hiring people via an agency or other outsourced provider – ensuring the provider is licensed.
The national transport provider explains that not all companies understand their responsibility.
“Engaging unlicenced labour hire workers is a sleeper issue because it’s easy to assume the responsibility for licensing lies solely with the labour provider,” Walter said.
“However, recent cases have highlighted that it’s also up to the company engaging labour services to ensure the provider is licensed.”
All states have their own labour hire laws, and there are huge fines for breaches. Ontime Delivery Solutions says that according to the Labour Hire Authority in Victoria, maximum penalties exceeding $600,000 for a corporation and $150,000 for an individual apply under the Act for providing labour hire services without a licence, or engaging unlicensed labour hire services.
Walter says companies can easily make this mistake by trusting that their service providers are fully licensed.
“A company can easily be caught out if a service provider increases their resources and you don’t check to ensure they have the appropriate license,” Walter said.
“It is a common risk in my industry of delivery transport. Anyone can buy a van and call themselves a transport solution.
“But what happens if your regular driver brings in a brother, cousin, or a couple of friends to help? It’s a detail which is easy to overlook, but if they aren’t licensed for this extra support you could be penalised.
“It is up to you to ask: do you have a labour hire license? Because it is not just the responsibility of the supplier providing the talent – it is also your responsibility as a company hiring the labour.”
Walter said the other potential trap for companies is thinking the labour hire regulations may not apply to their sector or industry.
“There’s a perception labour hire breaches are only an issue for industries like fruit picking or construction, due to media coverage of those industries,” Walter said.
“But the rules apply to any company outsourcing talent in any industry – whether you are in auto parts, technology, professional services, marketing, or manufacturing.
“To ensure compliance when engaging labour hire services, it’s best to ensure the appropriate licenses are in place to cover extra resources.”
For more information, visit www.ontimedeliverysolutions.com.au