5 new small business laws you need to know about
It kicked off 23 Feb 2018.
Mandatory data breach notification obligations means that businesses no longer have an option to conceal cyber security breaches that may have happened to their business networks.
There is now a requirement to notify both the Office of the Australian Information Commissioner (OAIC) as well as โaffected individualsโ (your customers and suppliers) if your business or any part is hacked or computers are stolen or any type of incident which involves client or customer private information.
All businesses that are subject to the Privacy Act and Australian Privacy Principles (APPs) with substantial penalties for non-compliance (you need to know if you are!).
The key actions you need to take (if you haven’t already) are:
Anyone who fails to notify the OAIC faces penalties including fines of $360,000 for individuals and $1.8 million for organisations.
16 April 2018 with 60 days after this date to lodge a license application.
These new labour hire licensing laws are impacting a scarily large number of existing businesses in a serious manner. A new mandatory labour hire licensing scheme has come in to effect that applies to all labour hire providers operating in Queensland. It also bans businesses from entering into labour hire arrangements with unlicensed providers.
Any business with a connection to Queensland that either provides or uses labour hire.
The legislation is very broad and includes anyone who provides a worker or services to another person to do work in their business. You may think you are not caught but a labour hire provider is someone who supplies a worker to do work. This affects a lot of businesses! It doesn’t matter if:
It captures arms-length labour hire providers; internal labour providers where workers are employed by a different business to the one they are providing services for; and secondments and loans of workers. It does not apply to traditional subcontractor arrangements, volunteer or work experience placements. It does mean that recruitment firms, vendor refill services, many contractor services, and a broad range of businesses now need to be licensed.
Basically, it includes any work that is performed by labour hire workers in Queensland, whether or not the labour hire worker or company is based in Queensland.
If you provide any labour services you must:
If you use any labour provider services, you must ensure all labour hire providers are licensed and registered.
The maximum penalties for a breach of these provisions is $126,044.60 or three years’ imprisonment for an individual, or $365,700 for a corporation.
1 March 2018, however businesses have 6 months to apply for a license.
South Australia has recently introduced labour hire licensing laws similar to Queensland with a mandatory licensing scheme that applies to all labour hire providers operating in the state.
As with the Queensland legislation, it is anyone that may be seen to be โproviding workersโ in any manner to a business in South Australia. This includes any outsourcing, contractors, essentially any service providers who are providing a service to a business at their place of work.
Anyone hiring or using outsourced services is also required to ensure the business they hire from is licensed.
Labour hire providers (including all people who provide staff, contractors, service providers) will have to pay licensing fees, have compliance regimes in place to ensure they pass fit and proper person tests and demonstrate workplace laws and employee entitlements.
If you provide labour services you must:
If you use any labour provider services, you must: ensure all labour hire providers you use are licensed.
Up to $400,000 or three years jail for breach of obligations.
Dec 2017 Victoria passed a similar bill. It is not yet legislation nor has a start date been announced. The latest it can come into effect is Nov 2019 but it will likely be prior.
Victoria recently introduced a labour hire licensing bill similar to Queensland and South Australia. They are, however, still finalising the details.
The requirements are similar to Queensland and South Australia including that providers of labour hire services are required to hold a license and anyone using labour hire services must only use licensed providers. There is also a fit and proper person test unlike Queensland and South Australia, they are likely to require applicants for the licenses to be able to show they are good corporate citizens.
Any business with a connection to Victoria that either provides or uses labour hire.
If you are a business that may be affected, either as a labour provider or hirer of labour services in Victoria, you need to keep checking on the new legislation that will be coming in and understand your obligations.
Still being finalised but likely to take effect by 1 July 2018.
There are two main issues to be aware of:
The new requirements are: your terms must include wording for a warranty for any supply of services also.
There are other proposed changes including making it easier for customers to sue but these are the main ones to be aware of.
Any and all businesses that offer goods or services to the Australian public consumer.
If you are a business that may be affected and you offer services to customers, you need to keep checking on the new changes to the Consumer law legislation that will be coming in and understand your obligations. You need to be aware of these proposed changes and ensure your business is up to date on the requirements.
These are the latest and most recent main updates and changes to be aware of. As Julius Caesar once famously said: โIf you must break the law, do it to seize power; in all other cases observe it.โ
If you have questions on the new small business laws or need more, ask below or get in touch.
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