The information on this website is based on the Labour Hire Licensing Act 2018 (Vic.) (the LHL Act)and the Labour Hire Licensing Regulations 2018 (Vic.) (the LHL Regulations) and provides broad details of the labour hire licensing scheme.
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Report a problem
If you are concerned that a labour hire provider is not complying with workplace laws you can let us know by visiting our report a problem page.
Who is a labour hire worker?
Workers are generally individuals employed and paid by labour hire providers and supplied to host businesses, farms or organisations on a full-time, part-time or casual basis.
In addition, if a person supplied by a labour hire provider is paid by a host, that person will still be a worker under the Labour Hire Licensing Act 2018 if the provider also procures or provides accommodation for the person.
A person who is an independent contractor supplied to a host by a labour hire provider will also be a worker under the Labour Hire Licensing Act 2018 if the provider continues to manage the performance of the contract — for example, by providing administrative and payroll functions or performance management in relation to the contractor.
Providers who supply only individuals who fall outside the definition of worker in the Labour Hire Licensing Act 2018 and the Labour Hire Licensing Regulations 2018 will not be regarded as labour hire providers and will not be required to be licensed. The Labour Hire Licensing Regulations 2018 prescribe a number of classes of individuals as not being workers. These include:
- certain secondees
- certain persons in circumstances where both the individual and the provider are part of an entity or group of entities
- an individual supplied to a host who is a director of a body corporate with no more than two directors, and who participates in the management of the body corporate or shares in its profits
- students to whom Division 1 or 2 of Part 5.4 of the Education and Training Reform Act 2006applies
- people undertaking work or services under a vocational placement within the meaning of the Fair Work Act 2009 (Cth).
How does the labour hire licensing scheme affect workers?
The scheme aims to protect labour hire workers from exploitation by seeking to ensure that only licensed labour hire providers operate in Victoria.
Labour hire providers have six months to apply to the Labour Hire Authority for a licence to operate.
Labour hire workers will be able to have confidence that licensed labour hire providers have demonstrated appropriate compliance with workplace, taxation and occupational health and safety laws.
Host businesses, farms or organisations will be prohibited from using unlicensed labour hire providers.
Workers who are entering into an arrangement with a labour hire provider are advised to check if the provider is licensed. The Labour Hire Authority will keep a Register of Licensed Labour Hire Providers which will be available once the scheme commences. Workers will also be able to check a separate online list of ‘Applications received’ to check whether a provider has applied for a licence. Workers will fall into the category of ‘interested persons’ who can make an objection to a licence being issued to an applicant.
Monitoring the licensing scheme
The Labour Hire Authority will have a team of inspectors who will have a range of powers to promote compliance with, and enforce, the licensing system.
Operators who are found to be unlicensed will incur significant financial penalties, with a maximum penalty for corporations exceeding $500,000.
See our Resources page for full details.