Professor Anthony Forsyth, the chair of the inquiry into the labour hire industry and insecure work in Victoria has said that that the inquiry will focus on fact-finding first, and regulation second. Labour hire is the term used locally to describe temporary agency staffing.

"The Inquiry will seek to identify how widespread these problems are, and the sectors and locations in which they are mainly evident. This will form part of a broader examination of the labour hire industry, including its benefits for Victorian businesses, workers and the community," he says.

“The Victorian Government has initiated this Inquiry to find out more about how work arrangements operate in the labour hire industry, and the extent of insecure work in Victoria. Labour hire is a legitimate way of engaging workers that is now an established feature of the Australian labour market. The labour hire sector is a major employer and contributor to the Victorian and national economies.”

“However, there is evidence that some labour hire operators are engaging in exploitative behaviour, using labour hire arrangements to avoid legal obligations such as those under workplace relations, superannuation and taxation legislation.”

“In particular, there have been reports in the last 12 months of some labour hire companies exploiting vulnerable employees including migrant workers. This includes practices such as underpayment or non-payment of wages, poor workplace health and safety, and breaches of visa restrictions.”

While this is primarily a fact-finding Inquiry, it will also consider options for regulatory reform including the viability of a licensing scheme for Victorian labour hire businesses and examples of the regulation of temporary work and agency work in overseas countries. The Inquiry will also focus on the issue of insecure work.

“Over the last 20 years, the traditional Australian model of full-time, ongoing employment has been eroded with the rise of various new forms of working. These include forms such as casual employment and independent contractor arrangements, which can often have real benefits for workers including flexibility over working time. But in some cases, workers are pressured into contractor relationships through ‘sham’ arrangements which are really designed to get around legal protections for employees. In others, long-term casuals take the place of ongoing employees, but without the protections. The Inquiry will examine the extent, nature and impact of insecure work in Victoria, including its impact on workers’ families and their financial and housing stability” he said.

The inquiry is accepting submissions on the discussion paper until November 27 and is due to deliver its report on 31 July 2016. For more information on the inquiry and its Terms of Reference, visit www.economicdevelopment.vic.gov.au/labourhireinquiry