Huge Victorian Labour Hire Authority backlog revealed

More than 1600 applicants are backlogged in Victoria’s Labour Hire Authority more than a year since the state’s licensing scheme first began.

Victoria’s Labour Hire Authority now has a backlog of more than 1600 applications

Victoria’s Labour Hire Authority has a backlog of more than 1600 applications well over a year since the state’s licensing scheme first began.

The body, set up to stop dodgy contractors from taking advantage of workers, has granted more than 3900 licences but has a sizeable list that it is yet to process since the scheme was introduced in October 2019.

The situation has sparked frustration among licensed operators over the current “transition” arrangements.

The labour hire laws cover multiple industries with issues of sham contracting and underpayment, with the authority created to crack down on these practices across the state.

It is understood the vast majority of applications received have been either incomplete or filled with major errors, forcing delays as the authority has had to educate each operator individually.

Some suppliers under the microscope of the Labour Hire Authority also pulled out of the process and left the industry after they were asked to provide more information.

“Our priority has been to move the behaviour of providers from general noncompliance to compliance and we have worked with applicants to improve their understanding of their basic workplace obligations,” a LHA spokesman said.

“Often in collaboration with other Victorian and Commonwealth agencies, we are looking at serious and complex issues such as payment below award wages, serious breaches of occupational health and safety laws and not providing workers’ compensation, money laundering for criminal organisations, human trafficking, illegal phoenix activity, sexual harassment and assault, unlawful wage deductions for tools, personal protective equipment, transport and accommodation, and non-compliant accommodation and transport.”

Other operators are furious at the “transition” arrangements delay.

Steve Curnow, the operator of Corsec Services, said he had written to the LHA three times about the issue.

Mr Curnow said while his company was at the risk of sanctions under Victoria legislation, some of those who were not yet licensed were not bound by those regulations.

Among them were companies with big State Government contracts, he said.

“What do we have to pay fees for when others blatantly abuse the system and the Labour Hire Authority cannot resolve a situation that has been ongoing for 16 months,” Mr Curnow said.