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Victorian Inquiry Into The Labour Hire Industry And Insecure Work Introduction.

Subm ission by Sho p, D istributiv e and Allied Em ployees’ Associatio n

Introduction

The Shop, Distributive and Allied Employees’ Association (SDA) is pleased to make a submission to this important Inquiry. The SDA commends the Andrews Government for initiating this timely Inquiry. The SDA hopes that its submission and recommendations to the inquiry are accepted and acted upon.

The SDA is the union that represents employees in the retail, fast food, warehousing, pharmacy and modelling industries. The SDA has coverage of those who work in these industries including any labour hire companies or agencies that provide labour in these areas.

It is timely that this Inquiry is conducted into the prevalence of labour hire in Victoria and also the shift towards insecure work, in particular the exploitation by unscrupulous employers of those on working visas. The growth in labour hire engagement is a feature of our growing and diversified economy and workforce. The exploitation of those on working visas is a feature of the illegal methods some employers take to advantage themselves.

The growth in labour hire engagement has benefits and drawbacks. A more flexible workforce can be utilised by a third party employer without having to have the responsibility of actually employing anyone. This can be very efficient and easy to administer. The fee paid to the labour hire company or agency takes care of the pay of the labour hire workers who work in your workplace. You are not the employer but it is your workplace.

The benefit for labour hire workers is the flexibility to work when they want. They can refuse a shift, they are not permanent employees. If the work is in a unionised workplace, the labour hire workers will usually have the benefits of a union enterprise agreement and could be union members. They are usually treated as the casual workforce at that site.

The drawback for labour hire workers is having no permanency or job security. You rely upon the next phone call or text to be offered shifts. If you refuse shifts you may not get any more. If you are not in a well run or regulated worksite your conditions may be the award minimum or worse.

There is no proper regulation of labour hire work or the companies or agencies that operate in Victoria. This is not a criticism of labour hire or of all labour hire companies or agencies. However the growth in labour hire engagement and the number of companies and agencies operating in Victoria means that it is time for proper regulation of this form of employment.

Insecure work has also of recent times become a cause for media attention. The long list of cases of working or student visa holders being severely exploited by unscrupulous employers is becoming embarrassing. These cases cannot go on; all levels of government must act immediately in a coordinated way to stamp out these illegal and immoral practices. Australia has been shamed by these cases.

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Who would have imagined that Australia would be showcased to the world as a country that exploits foreign workers? We have seen numerous media reports of foreign workers exploited in other countries. But who could imagine that a country like Australia, with our decent wages and working conditions, would face the same media attention and be rightly condemned for allowing such exploitation and seeming to be doing nothing to stop it.

The work of the Inquiry is therefore timely, and the SDA looks forward to its findings and recommendations. More importantly we hope that the inquiry will educate Victorians about the issues it raises and that proper solutions will be found to address any issues.

The two main areas of the inquiry, the use of labour hire and the incidence of insecure work, are issues of which the SDA has knowledge. In our submission there is a role for labour hire, there is no role for insecure work.

Terms of Reference

In relation to the terms of reference, the SDA wishes to make submissions and recommendations in relation to the following sections:

a) The extent, nature and consequence of labour hire employment in Victoria, including but not limited to:

i. the employment status of workers engaged by labour hire companies:

The persons who are engaged by labour hire companies ultimately work for a third party employer. The third party employer directs the labour hire person to work but is not their employer. It is not always clear that those persons engaged by labour hire companies are in fact employees.

Employees of the labour hire company then have no permanency or regular work unless the work comes from a third party employer. The pay for the labour hire employee comes from the third party employer.

Some labour hire employees enjoy long periods of regular work with a third party employer. They receive pay and conditions whilst working at the third party employer. But they are not employees of the third party employer and do not enjoy the benefits of being an employee of the third party employer.

Consideration should be given to define that those engaged by labour hire companies are employees of the labour hire companies and not for example, sub-contractors. Those engaged by labour hire companies should be employed and not be engaged on a contract for service.

iv. the application of industrial relations laws and instruments:

The issue here is the ability of the labour hire employee to be legally paid less than the rate of pay under any on-site enterprise agreement (EBA) that covers employees of the third party employer. As the labour hire employee may not be technically covered by the EBA,

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they can be paid the lower rates of the applicable industry or occupational award. However they perform the same work as the employees under the EBA.

To avoid confusion and to properly remunerate the work done by the labour hire employee, they should be paid no less than the on-site rates and conditions in any EBA.

Also labour hire workers have no access to the EBA grievance procedure and have no real mechanism to resolve any workplace dispute that they have with the third party employer. This needs to be addressed. Both of these changes will require change to the Fair Work Act.

v. the legal rights and obligations of labour hire employees, companies and host organisations/entities and any ambiguity that exists between them:

Any change here would be at a Federal level. In Victoria for example a labour hire employee who had been regularly working with a third party employer and was then not offered work could not complain that they had been unfairly dismissed or adversely affected by the third party employer.

As the labour hire workers are not employees of the third party employer they cannot be dismissed by the third party employer. If there is any action it would be against the labour hire company. The labour hire company has not dismissed them either so where does someone go to complain if they lose a good labour hire placement?

A mechanism needs to be established to allow for labour hire employees to be able to complain about their treatment by a third party employer. If not by a change to the Fair Work Act then a complaint mechanism that relates to the licensing and regulation of labour hire companies or agencies that operate in Victoria.

Further the grievance procedure of the applicable award or the on-site EBA should allow for disputes by labour hire workers with the third party employer to be addressed.

vi. Allegations that labour hire and sham contracting arrangements are being used to avoid workplace laws, and other statutory obligations, and the current effectiveness of the enforcement of industrial relations, occupational health and safety and workers compensation laws:

Generally the labour hire companies and agencies that the SDA deal with in warehouses are long established and reputable. Companies and agencies may replace one another but generally there are no sham arrangements being used to avoid legal obligations in warehouses. To avoid any potential sham contracting arrangements and to provide that labour hire workers are properly engaged and remunerated, labour hire companies and agencies that operate in Victoria must be registered. The Victorian Government has the power to regulate labour hire companies and agencies and should therefore pass enabling

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legislation to allow for a registration regime to be established along with a registration agency to administer the legislation and the registration.

Such registration shall mandate that labour hire companies and agencies have a proper and legal business structure. No labour hire company or agency director shall be a bankrupt or have a criminal conviction. Such registration will give confidence to those workers who register with a labour hire company that the company is bona fide and entitled to operate as a labour hire company.

b) The extent, nature and consequence of other forms of insecure work in Victoria, including but not limited to:

i the use of working visas, particularly in insecure, low paid, unskilled or semi-skilled jobs and trades:

The use of working visas in Australia has become too common. From the SDA’s experience in the retail and fast food industries, the influx of workers on student visas has been significant in the last ten years. These workers are being used in preference to local labour in too many instances. There is still a relatively high unemployment rate, especially amongst young people and therefore the need for so many employees on working visas to work in these industries cannot be justified.

This is not a reflection on those employees on working visas, but a sign that employers have taken on many working visa employees because these workers may not be aware of their working rights and can be taken advantage of by unscrupulous employers. Because there are so many employees on working visas it is difficult for any Government to properly regulate their employment, including that they are properly paid and receive superannuation and are working in safe workplaces, amongst other things.

ii. exploitation of working visa holders and other vulnerable classes of workers including female workers:

The regulation of working visas is a Federal government responsibility. The recent well publicised abuses of international students, holiday makers and visitors whilst working on visas have been shocking. It has exposed how unscrupulous employers can exploit vulnerable and naive workers.

Australia as a nation should be collectively ashamed at the exploitative treatment of workers on visas. It is a national and international blight on Australia, a country that describes itself as giving everyone a fair go, not a raw deal.

Working visas for international students, visitors and holiday makers should only be used to fill necessary vacancies, either short term or longer term that cannot be filled by local workers. The use of working visas for too many jobs in Australia has become too widespread and therefore having an impact on local jobs. On the other hand many

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industries rely on working visa employees to fill seasonal and temporary vacancies, be they in areas like fruit picking or harvesting or in hospitality jobs either in winter or summer.

The danger with the recent episodes of exploitation of those on working visas is that the worldwide publicity will frighten many potential working visa holders, who are generally young, from coming to Australia, not to mention their parents. The negative publicity about working visas will force many young international students and visitors to think twice about coming to Australia to study, work or holiday.

This scenario is to be avoided. How can Australian workplaces be thought of as workplaces that exploit workers and not ones that reward hard work.

Consideration must be given by all governments to educate those on working visas of their workplace rights. To this end, the Victorian Government should initiate an education program in such areas as educational institutions to inform any students who have a working visa about their workplace rights. These rights include rates of pay, superannuation and health and safety.

3.3 Questions in relation to labour hire work

In relation to the questions asked by the Inquiry in its background paper in relation to labour hire the SDA offers the following comments:

Labour hire is used in the warehousing industry in Victoria. The SDA covers a number of retail warehouses in Victoria. These operate under enterprise agreements registered with the Fair Work Commission.

The labour hire workers that are engaged in retail warehouses are generally used as casuals. Many retail warehouses will outsource their casual workforce to a labour hire company or agency. These workers will work solely or predominantly at the one site, sometimes for many years. They will work at the direction of the third party employer but have no employment relationship with the third party employer.

The main retail warehouses are situated in metropolitan Melbourne. The main labour hire agencies in these establishments are well known and longstanding entities. The large retail and wholesale warehouses want to work with established labour hire companies, for good reason.

In the retail warehouses that the SDA covers labour hire company workers are engaged as employees of the labour hire company. Some labour hire workers are engaged by multiple labour hire companies, they can work in a different industry every day.

Labour hire workers can receive the enterprise agreement rates at the worksite or the award rates. It is up to the labour hire company what it will follow. There may be a labour hire employment contract that requires the labour hire employees to be paid the enterprise agreement, the onsite rates, or there may be no arrangement and then the award applies.

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Generally in large sites with an EBA, labour hire workers are paid the onsite rates, not the award rates. But not all EBA rates may apply; the labour hire company may not pay above the general entry rate in the EBA as this rate will exceed any rate in the applicable award.

The main difference between the direct employees of the third party employer and labour hire workers will be the access to permanent work and the benefit of any higher rates of pay than the applicable award. Direct employees of the third party employer, including casuals, have a permanent employer.

A steady job and regular income is the main difference. However labour hire engagement in retail warehouses is generally to provide casual labour and therefore many labour hire casuals in retail warehouses who receive the onsite rates are being paid above the award.

Generally in large retail warehouses, labour hire workers have access to union membership and the protection and benefits that go with that. In general, labour hire engagement in large retail warehouses, where there is a union presence, is not used to evade workplace laws and other legal obligations.

If there are any issues then the union is available to approach both the labour hire company and the third party employer. Union presence in workplaces that engage labour hire has a beneficial effect on the employment conditions of the labour hire workers. A union presence will help ensure that proper wages and conditions are adhered to and that health and safety is not neglected for labour hire workers.

There are positive outcomes for the use of labour hire for Victorian workers, businesses and the broader community. Where labour hire is used for the purpose of casual or short term work and the workers are properly remunerated and receive standard workplace conditions of employment, then the workers benefit, businesses that use them benefit and in general the work done is valuable to the community.

There are problems when long term labour hire workers look for permanent work with the third party employer. Employers have also become too reliant on labour hire employment instead of direct employment.

Direct, permanent employees at the third party employer workplace are not always replaced. If there are vacancies long term labour hire workers would like the chance to become permanent. This is not always possible; many people are chasing fewer and fewer permanent vacancies with third party employers.

Ultimately labour hire engagement should only be used to supplement permanent employment. As a community, the need for long term employment is crucial for workers to sustain their lives, their families and their financial commitments.

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A long term labour hire position will never replace a long term permanent position for providing financial security and job satisfaction.

The following are case examples of issues with labour hire employment in large retail warehouses in Victoria:

What working conditions do labour hire workers typically have? What differences are there, if any, between the conditions of direct employees of a host organisation and labour hire workers?

Typically labour hire workers working within the retail warehouses we represent have their working conditions covered by the Storage Services and Wholesale Award 2010. In most cases in the warehouses the SDA represents there is a certified enterprise agreement which covers the working conditions of the direct employees of the organisation. Labour hire workers are not entitled to the terms and conditions of the enterprise agreement. The enterprise agreements which we negotiate with the retail warehouses have a number of conditions which are greater than what is offered under the Storage Services and Wholesale Award 2010 including the rate of pay. Labour hire workers do not have access to these improved provisions in the enterprise agreements. There are a number of clear differences between the working conditions of labour hire workers and direct employees which include; voluntary work on public holidays and access to the enterprise agreement grievance procedure. Labour hire employees can often be disadvantaged due to the fact they are not covered by the conditions of the enterprise agreement. With that being said, it is common practice for labour hire workers to be paid at the same rate of pay as direct employees of the warehouse as per the enterprise agreement. This is the case in a number of large retail warehouses we represent.

There is only one example of a large warehouse the SDA represents which doesn’t pay the enterprise agreement rate to labour hire workers. In this case labour hire workers who complete work at the warehouse are paid as per the Storage Services and Wholesale Award 2010. This means that labour hire workers are being paid less than the direct employees who are being paid as per the enterprise agreement which has a higher rate of pay. In this warehouse there are labour hire workers completing the same tasks and roles as direct employees but are being paid less then direct employees.

In all warehouses we represent one common concern is that traditionally labour hire workers are only paid the minimum rate of pay in the enterprise agreement. Most enterprise agreements which have been negotiated by the SDA have a number of different levels and classifications which provide higher rates of pay for employees. There have been examples of labour hire workers being long term workers at the one warehouse and not being paid anymore than the minimum in the agreement. This is a clear disadvantage for labour hire workers compared to direct employees who have the ability to move up through the classifications and get the higher rates of pay.

One of the main issues for labour hire workers in one of our major retail warehouses is that they are not covered by the grievance procedure in the enterprise agreement. This means

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they are limited in what action they can take when they have a dispute in the workplace. The enterprise agreement also has a clause which restricts how the company handles underperforming employees .This programme aims to provide a two way conversation between employee and employer when dealing with potential performance issues. The programme has a multi step process which the company must follow when dealing with underperforming employees. This programme gives the employee a significant opportunity to improve performance and puts the employee in the best position to succeed in the role in the long term. Labour hire workers do not have access to this programme and are as such disadvantaged compared to direct employees of the company. In our experience if a Labour hire worker is not performing to the required target they are informed they need to improve. If the company doesn’t see any improvement they have on many occasions informed the labour hire company that the specific worker is not required anymore. The company does not have the restrictions of the programme to follow and do not have to work with the labour hire worker to try and help improve performance. If performance doesn’t approve they can simply let the labour hire employee go. This is one of themajor disadvantages facing labour hire workers in this specific warehouse.

Is there evidence of labour hire being used to evade workplace laws and other legal obligations?

There is evidence of labour hire workers not being offered work by their host employer suddenly and not being offered any explanation. Labour hire workers are far more restricted in action they can take against a host employer if they are essentially dismissed from their employment. Host employers are not bound by the same regulations when it comes to unfair dismissals under the Fair Work Act. The Labour hire agency is the employer of the worker and the host employer can decide that a worker is no longer required. This enables host employers to have less regard for the legislation and they can decide to terminate the employment relationship with a labour hire worker with little to no recourse available to the Labour Hire workers against the host employer. The labour hire workers are usually then just sent to another workplace which may have less favourable pay and entitlements.

There is also the issue of more labour hire workers being employed in certain warehouses then direct employees. This enables the employer to have a more flexible workforce where they can pick and choose which employees they want to use and are not bound by the conditions of employment within the enterprise agreement.

In what ways do hosts typically use labour hire workers? Are they used to supplement or to replace ongoing workforces or direct employees?

It appears that in most cases that the labour hire workers are being used to supplement direct employees. However there are examples of warehouses using labour hire workers as the primary source of employment. At times within a specific warehouse there have been a greater number of labour hire workers working compared to direct employed employees. This appears to be somewhat of an isolated experience. It is our experience that labour hire workers are generally used to supplement the workforce.

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In one of the enterprise agreements which covers one of the warehouses we represent there are clauses in the agreement which guarantee the amount of direct employed permanent employees in the warehouse. There is also a clause which states that the employer will offer a number of permanent jobs to long term labour hire workers per year during the life of the agreement.

To what extent is labour hire used in Victoria? In which industries and regions is it most prevalent?

It is our experience that labour hire employees are used largely throughout warehousing and distribution centres. In all of the Warehouses and Distribution Centres the SDA covers there are a number of labour hire workers employed within the workplace. Different distribution centres use labour hire workers differently, with some using them to supplement their workforce of direct employees and some using more labour hire workers then direct employees.

4.5 Questions in relation to insecure work

In relation to the questions asked by the Inquiry in its background paper in relation to insecure work the SDA offers the following comments:

What experience or evidence can you provide of exploitation of vulnerable workers in Victoria? This could include working visa holders, young or older workers, workers from a non-English speaking background, women workers, workers with low levels of formal education, workers with a disability or other vulnerable workers.

What experience or evidence can you provide of the use – or misuse – of working visas in Victoria? Which industries and regions are they used in? What kinds of jobs do working visa holders obtain?

7-Eleven

The SDA has been supporting many 7-Eleven employees, by helping them to recover their legal entitlements, which have been subject to a systematic pattern of exploitation by many 7-Eleven franchisees.

These employees, most of who are on student visas, need to be aware that just because some of them may not be Australian citizens, they still have industrial rights under Australian law.

7-Eleven workers have rights:

• To be paid for the hours worked;• Penalty rates for late night and weekend work;• Sick pay and annual leave if permanent employees; and• The employer cannot dock pay if the till is short or if an employee is held up.

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On 24 September 2015, the SDA appeared as a witness before the Australian Senate Standing Committee on Education and Employment Inquiry into ‘The impact of Australia’s temporary work visa programs on the Australian labour market and on the temporary work visa holders’. Attached is a copy of the SDA’s submission to the Inquiry for consideration by this inquiry.

The key element in our submission is the acknowledgement of underpayments, be it with wages or non-observance of conditions, which should be seen and taken as exploitation driven primarily by a severe power imbalance in the relationship between a visa worker and the employer.

The SDA is seeking that the Federal government put in place a special amnesty visa which a person being employed under a student visa, a migrant worker visa, a holiday-maker visa or a 457 visa could activate if affected when not receiving their legal workplace entitlements. Our experience tells us that it is the employees who are the victims and the system at the moment puts the onus on them to prove that they should not suffer the consequences of immigration law. The SDA would like to see the onus reversed.

The other key items in our submission go to the Fair Work Ombudsman's resources. The SDA submits that it is not realistic to consider that the Fair Work Ombudsman is able to appropriately enforce the labour laws in this country, for a range of reasons included in our submission. We believe that additional resources should be given.

The other key element of our submission is that the SDA is seeking the separation of the inspectorate powers of the Fair Work Ombudsman, which should be focused on upholding Labor standards. We want that separated clearly from any dual obligations that they have with the Department of Immigration and Border Protection. Student workers feel as though they cannot put their hand up and go to the Fair Work Ombudsman, because they could be putting their visa entitlements at risk.

The workplace issues the SDA have seen include, quite often, 7-Eleven employees working double the hours that are on their pay slip. Effectively, these employees are getting half the pay. That is quite common. The other common approach is that employees work the right hours, but, to make the franchises get the wages down, employees are required to give back some wages as cash and this cash is often used by the franchisee to pay other employees who do not appear on the books anywhere.

Further, the hourly rate of pay – which is a flat rate – applies for night work, weekend work and public holidays. The SDA has also come across issues around superannuation. In some circumstances, it is just not paid. 7-Eleven employees are told when they start, 'this is just an account.' They might have to fill out some paperwork which can be shown to others upon inspection, but nothing goes in. Other employees have told us that some super has gone in, but, obviously, if you are getting half the pay, you are not getting your full super entitlement.

The other unfortunate and recurring themes are that 7-Eleven employees have to compensate the franchisee for losses arising from shoplifting and, if their cash register is short, there is another common pattern that they have to make up the difference in the register at the end of their shift.

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Three former 7-Eleven employees, from two states, also appeared with the SDA before the Senate Inquiry. It does not matter which state you go to, the stories are very similar. With the framework of the exploitation, there are patterns.

There are some things that have come out in the detail that we have that go to the culture of the workplace. There is a real power imbalance. These 7-Eleven employees are young and therefore do not have much life experience. They are in a foreign country. They do not have the normal support networks that a lot of young Australians would be able to go to — family or connections somewhere else in the community — to ask advice. Figures of authority, whether an immigration officer or a union official, once they know that they have been in a situation of a possible breach of their visa, are not people they will reach out to. They are extremely vulnerable, and they know and are told that they had better not say too much, because they have breached their visa. This power imbalance is quite severe. It has resulted in a veil of silence sitting over this company, for a number of years.What we are seeing now is the lid being lifted on that—and not before time.

The SDA believes whistleblower protections need to be extended to cover temporary visa workers. The 7-Eleven workers are predominantly on student visas .What we saw as a solution to the problem is the changing of the onus and trying to move the worker from being the victim and our laws targeting the victim to the laws protecting the worker. This needs to be something that cuts across all visas. Whilst they are all different, there have been examples in recent times of people being coerced into breaches, be it of the 457 visa or the holiday worker visa. To us, with all of those visas, we need to have an amnesty visa in place so that it does not matter what visa you are working under. If you are an exploited worker — that is, you are getting wages below Australian minimums or the minimum conditions are not being observed — we want a system whereby people can come forward in confidence of not suffering negative consequences and they would not suffer the repercussions of deportation. The biggest fear of workers on visas reporting any exploitation is the fear of deportation

The SDA believes that the solution for this problem cuts across all of those visas, and we think it is important for the individuals who are being exploited, but it is also important for the standard of Australian wages because this is creating a black market out there in wages.

What experience or evidence can you provide of sham contracting?

Pizza Hut

Recent media reports indicate that Pizza Hut franchisees have been using 'sham' contracts to underpay its delivery drivers.

The SDA is outraged to hear Pizza Hut franchisees are using independent contracts to pay delivery drivers as little as $6 per delivery.

If Pizza Hut employees are getting paid $12 per hour as a result of delivering pizzas, it's simply not legal. The SDA's response is that we completely reject these payments as proper compensation for the work performed.

These are not legal rates. The drivers have to be paid the proper legal rate. The SDA has approached Pizza Hut to have it look into these reports of underpayment.

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The SDA has an agreement in place that does not allow for contractors. We are in the midst of negotiating a new agreement with Pizza Hut where we are looking for an increase in rates.

Hopefully as with 7-Eleven, media coverage of this new case will persuade Pizza Hut franchisees to lift their game and properly pay its delivery drivers.

Conclusion

The work of this Inquiry in highlighting the need for greater protection of labour hire works and those on working visas is to be applauded.

The proper regulation of labour hire companies and agencies will give greater security to labour hire workers and the industries that utilise them. If labour hire companies or agencies are registered by a government authority there will be a proper oversight of their activities. This will lead to workers being properly treated and less chance of fly by night operators having an unfair advantage by ignoring their legal responsibilities.

The system of working visas has been shown to have been exploited by unscrupulous employers. In recent times similar exploitation of 457 visa workers was exposed and ultimately addressed by legislation.

The well known examples of exploitation of student and working visas must now also be addressed and rectified. The efforts of this inquiry to expose these examples will hopefully convince the Federal Government to grant amnesties to those who come forward to complain of their treatment.

The SDA notes that on November 23rd the Federal Government has announced that in response to the shocking revelations about the treatment of those on working visas that it’s newly established Ministerial Working Group on Protecting Vulnerable Visa Holders will consider a new licensing regime for labour hire companies. This is an important step forward and coupled with a general amnesty for those who come forward with cases of exploitation will help address the issue. This Inquiry can look with confidence in following the Federal Government’s lead and can consider favourably the need for licensing or registration of labour hire companies and agencies that operate in Victoria.

Further the Federal Government has announced that it is requiring applicants for a second Working Holiday visa to provide the Federal Department of Immigration and Border Protection with pay slips covering their initial three month period of work to ensure that they have been properly paid. This is a good first step but will only address an underpayment after the event. There should be regular checks by the Department of all those on working visas as the Government is well aware that there is an ongoing problem. (See attached answer by the Hon Peter Dutton, Minister for Immigration and Border Protection)

The SDA looks forward to the positive changes that will be implemented by this important Inquiry.

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Recommendations:

In relation to the Inquiry and its findings, and in light of these submissions, the SDA propose the following recommendations for the State Government to implement:

Recommendation 1: That all labour hire companies or agencies operating in Victoria are registered and regulated by either the State Government and/or the Federal Government.

Recommendation 2: That a government body be established to register and regulate all labour hire companies or agencies in Victoria.

Recommendation 3: That a registration system for all labour hire companies or agencies operating in Victoria be established by the registration body.

Recommendation 4: That a fit and proper person test be established for any person who is a director of a registered labour hire company.

Recommendation 5: That any labour hire company or agency shall have registration for no more than 3 years. Each 3 years a labour hire company or agency shall reapply for registration. New registration will not be granted if the labour hire company or agency has committed significant breaches of its registration.

Recommendation 6: That to be registered, labour hire companies and agencies must commit to an enforceable code of conduct. The code will include the compliance of all relevant and legal workplace conditions of employment, including health and safety legislation.

Recommendation 7: That no person be able to work for a third party or host employer unless employed by a registered labour hire company or agency.

Recommendation 8: That any labour hire company or agency that is not registered to operate in Victoria shall be closed down by the regulatory authority.

Recommendation 9: That any Labour hire company or agency that operates in Victoria shall have three months from the date that the registration authority is established to be registered.

Recommendation 10: That labour hire workers have access to a legally binding grievance procedure for any workplace issues at the host employer’s workplace.

Recommendation 11: That all franchising agreements between a franchisor and a franchisee or franchisees in Victoria contain a legal commitment that makes the franchisor liable for any underpayment of wages and breaches on industrial awards , agreements or industrial laws by the franchisee or franchisees.

Recommendation 12: That accurate employment records of any transferring employees of any franchise business sold to a new owner be provided to the new owner.

Recommendation 13: That an extensive education program be undertaken by the State Government in tertiary institutions, TAFES and education colleges to educate potential employees of labour hire companies and agencies and those with student visas of their legal working entitlements.