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FAIR WORK ACT 2009 - SECT 306E

FWC may make a regulated labour hire arrangement order

Regulated labour hire arrangement order

  (1)   The FWC must, on application by a person mentioned in subsection   (7), make an order (a regulated labour hire arrangement order ) if the FWC is satisfied that:

  (a)   an employer supplies or will supply, either directly or indirectly, one or more employees of the employer to perform work for a regulated host; and

  (b)   a covered employment instrument that applies to the regulated host would apply to the employees if the regulated host were to employ the employees to perform work of that kind; and

  (c)   the regulated host is not a small business employer.

Note:   The FWC may make other decisions under this Part which relate to regulated labour hire arrangement orders: see Subdivisions C (short - term arrangements) and D (alternative protected rate of pay orders) of this Division, and Division   3 (dealing with disputes).

  (1A)   Despite subsection   (1), the FWC must not make the order unless it is satisfied that the performance of the work is not or will not be for the provision of a service, rather than the supply of labour, having regard to the matters in subsection   (7A).

  (2)   Despite subsection   (1), the FWC must not make the order if the FWC is satisfied that it is not fair and reasonable in all the circumstances to do so, having regard to any matters in subsection   (8) in relation to which submissions have been made.

  (3)   For the purposes of paragraph   (1)(a), it does not matter:

  (a)   whether the supply is the result of an agreement, or one or more agreements; or

  (b)   if there are one or more agreements relating to the supply--whether an agreement is between:

  (i)   the regulated host and the employer; or

  (ii)   the regulated host and a person other than the employer; or

  (iii)   the employer and a person other than the regulated host; or

  (iv)   any 2 persons who are neither the regulated host nor the employer; or

  (c)   whether the regulated host and employer are related bodies corporate.

Note:   If related bodies corporate with different corporate branding do not provide labour to each other, a regulated labour hire arrangement order cannot be made because labour is not supplied in the way mentioned in paragraph   (1)(a).

  (4)   For the purposes of paragraph   (1)(b), in determining whether a covered employment instrument would apply to the employees, it does not matter on what basis the employees are or would be employed.

Regulated employee and host employment instrument

  (5)   An employee referred to in paragraph   (1)(a) is a regulated employee .

  (6)   The covered employment instrument referred to in paragraph   (1)(b) is a host employment instrument .

Who may apply for an order

  (7)   The following persons may apply for the order:

  (a)   a regulated employee;

  (b)   an employee of the regulated host;

  (c)   an employee organisation that is entitled to represent the industrial interests of an employee mentioned in paragraph   (a) or (b);

  (d)   the regulated host.

Matters that must be considered in relation to whether work is for the provision of a service

  (7A)   For the purposes of subsection   (1A), the matters are as follows:

  (a)   the involvement of the employer in matters relating to the performance of the work;

  (b)   the extent to which, in practice, the employer or a person acting on behalf of the employer directs, supervises or controls (or will direct, supervise or control) the regulated employees when they perform the work, including by managing rosters, assigning tasks or reviewing the quality of the work;

  (c)   the extent to which the regulated employees use or will use systems, plant or structures of the employer to perform the work;

  (d)   the extent to which either the employer or another person is or will be subject to industry or professional standards or responsibilities in relation to the regulated employees;

  (e)   the extent to which the work is of a specialist or expert nature.

Matters to be considered if submissions are made

  (8)   For the purposes of subsection   (2), the matters are as follows:

  (a)   the pay arrangements that apply to employees of the regulated host (or related bodies corporate of the regulated host) and the regulated employees, including in relation to:

  (i)   whether the host employment instrument applies only to a particular class or group of employees; and

  (ii)   whether, in practice, the host employment instrument has ever applied to an employee at a classification, job level or grade that would be applicable to the regulated employees; and

  (iii)   the rate of pay that would be payable to the regulated employees if the order were made;

  (c)   the history of industrial arrangements applying to the regulated host and the employer;

  (d)   the relationship between the regulated host and the employer, including whether they are related bodies corporate or engaged in a joint venture or common enterprise;

  (da)   if the performance of the work is or will be wholly or principally for the benefit of a joint venture or common enterprise engaged in by the regulated host and one or more other persons :

  (i)   the nature of the regulated host's interests in the joint venture or common enterprise; and

  (ii)   the pay arrangements that apply to employees of any of the other persons engaged in the joint venture or common enterprise (or related bodies corporate of those other persons);

  (e)   the terms and nature of the arrangement under which the work will be performed, including:

  (i)   the period for which the arrangement operates or will operate; and

  (ii)   the location of the work being performed or to be performed under the arrangement; and

  (iii)   the industry in which the regulated host and the employer operate; and

  (iv)   the number of employees of the employer performing work, or who are to perform work, for the regulated host under the arrangement;

  (f)   any other matter the FWC considers relevant.

What an order must specify

  (9)   A regulated labour hire arrangement order must specify:

  (a)   the regulated host covered by the order; and

  (b)   the employer covered by the order under this section; and

  (c)   the regulated employees covered by the order under this section; and

  (d)   the host employment instrument covered by the order; and

  (e)   the day the order comes into force, which must be:

  (i)   if the order is made before 1   November 2024--that day or a later day; or

  (ii)   otherwise--the day the order is made or a later day.

Note:   For paragraphs   (b) and (c), additional employers and regulated employees of those employers may be covered by the order under section   306EA.

What an order may specify

  (10)   A regulated labour hire arrangement order may specify when the order ceases to be in force.

Note:   For variation and revocation of a regulated labour hire arrangement order, see section   603.


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