Labour Hire

LABOUR HIRE CHANGES COMMENCE 30 OCTOBER 2019

From 30 October businesses must only use licensed labour hire providers or providers who have applied for a licence before 30 October 2019 and have not been refused, or face major penalties.

In Victoria, the Labour Hire Licensing Act 2018 has been legislated.

The scheme was established in response to the Victorian Inquiry into the Labour Hire Industry and Insecure Work which uncovered widespread abuse and exploitation of labour hire workers across Victoria.

The key elements of the licensing scheme are as follows:

  • labour hire providers must be licensed to operate in Victoria
  • those who use labour hire providers must only engage licensed providers
  • labour hire providers must report annually on their labour hire activities.

The Labour Hire Licensing Authority is responsible for licensing labour hire providers and undertaking education, enforcement and compliance activity. Workers will be protected against exploitation from unlicensed labour hire providers and host employers not engaging licensed providers.

The scheme seeks to achieve a level playing field, such that reputable labour providers do not face unfair competition from unscrupulous operators, and labour hire workers are not subject to exploitation.

Labour hire providers have six months to apply for a licence. From 30th October 2019, hosts must not use unlicensed providers unless a provider is on the Authority's website as having applied for a licence and the application has not been refused.

How does impact you?

  • If you conduct a business that involves supplying one or more workers to work in a business owned by another person, you will need to apply for a licence to operate as a labour hire provider. From 30 October 2019, substantial penalties will apply to labour hire providers who don't have a licence or a licence application pending. For more information, click here.
  • If you conduct a business that engages labour hire providers to supply you with individuals to work in your business, from 30 October 2019 you must only use licensed labour hire providers. For more information, click here.
  • If you are a labour hire worker, you should be engaged by reputable providers who comply with their obligations. For more information, click here.