Labour Hire Licensing in Victoria: One Month After Changes
Contractor Management

Labour Hire Licensing in Victoria: One Month After Changes

Since 2019, the Victorian Labour Hire Authority (LHA) has removed more than 1,000 non-compliant labour hire providers from the industry and taken significant enforcement action against both unlicensed providers and host businesses. From 1 June 2026, the LHA has been granted stronger powers aimed at improving fairness, accountability and compliance across the labour hire sector.

The LHA has demonstrated its willingness to take decisive action where licence holders fail to meet their obligations. In a recent example, the LHA cancelled the labour hire licence of Hudson Global Resources Pty Ltd, effectively preventing the company from operating as a labour hire provider in Victoria.

The strengthened labour hire licensing laws released last month introduce:

  • A more stringent ‘fit and proper person’ test.
  • Broader powers for the LHA to consider an applicant’s overall compliance with key laws, including those relating to bankruptcy, consumer protection, fair trading and corporate regulation.
  • New financial viability assessments for licence applicants and holders.

Under the updated laws, individuals involved in the ownership, management or operation of labour hire businesses must satisfy a more rigorous fit and proper person test. In assessing whether a person is fit and proper, the LHA may consider:

  • Whether another person who is not fit and proper exercises control over, or has significant influence over, the business; and
  • The individual’s character, including their honesty, integrity and professionalism.

A new notification obligation requires licence holders to inform the LHA within 30 days if a relevant person ceases to be fit and proper. Failure to notify may trigger licensing action, including licence cancellation.

Significant penalties apply for providing or using unlicensed labour hire services in Victoria. Penalties can exceed $660,000 for corporations and $160,000 for individuals.

Additional amendments are expected later in 2026, including changes to clarify the definition of labour hire services and expand the Act’s application to certain supply chain arrangements. The reforms will also designate specified construction activities as labour hire services under the Regulations.

Cm3 will continue to monitor these developments and provide further updates and guidance to help clients understand and respond to the changing regulatory requirements.