• Legislation & regulations

The Labour Hire Authority (LHA) is increasing its education and engagement focus in the aged care industry, to highlight businesses’ obligations and protect workers in the growing sector.

There are currently over 200,000 aged care workers in Victoria; it is estimated this workforce will need to increase by 70 per cent by 2050 to meet demand in the context of an aging population.

The risk of worker exploitation in aged care

The aged care industry carries an increased risk of worker exploitation, as it currently employs a high proportion of migrant workers, including workers sourced through programs such as the PALM Scheme and the Aged Care Industry Labour Agreement.

The Royal Commission into Aged Care Quality and Safety highlighted challenges for both workers and businesses in aged care. Its final report, released in 2021, outlined the critical role workers in the aged care sector have for older Australians and their families and made several recommendations for reform of the industry.

In March 2024, the Victorian Government announced a wage increase of up to 28.5 per cent for workers in the aged care sector, following a Fair Work Commission (FWC) finding that their work had been historically undervalued based on unfair assumptions about gender.

Education and engagement in aged care

LHA will be undertaking targeted education and engagement activities in the aged care industry in the coming months, to increase businesses’ understanding and compliance with legal obligations.

LHA is exhibiting at the Care Expo Melbourne on 30-31 August 2024 at the Melbourne Showgrounds.

The event is free to attend. For more information or to register, visit the Care Expo Melbourne website.

Online and in-person information sessions for businesses in aged care will be scheduled following the expo, covering:

• Businesses’ obligations under Victorian labour hire law
• LHA’s upcoming compliance and enforcement focus
• Tools and resources to support businesses.

Keep an eye on future editions of LHA News, and the Events page on the LHA website for details.

Aged care and labour hire licensing obligations

Businesses that supply workers to work in and as part of an aged care facility, or through another business to a residential home, may need a labour hire licence to operate in Victoria. Host businesses must only source labour hire workers through licensed labour hire providers.

Under the Labour Hire Licensing Act 2018 (Vic), penalties for using or providing unlicensed labour hire services can exceed:

• $630,000 for a corporation
• $150,000 for an individual.

Labour hire providers must also comply with relevant laws; non-compliance can lead to actions including imposing licence conditions, suspension or cancellation.

Businesses should use the tools on the LHA website to ensure providers have a valid licence: 

• Check a labour hire provider is licensed using LHA’s Labour Hire Licence Register.
• Stay up to date on any changes to a labour hire provider’s licence status using Follow my Providers.
• Report any suspected non-compliant or unlawful activity using the Report a Problem tool.