Labour hire law changes 2026

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Under stronger, broader laws now in effect in Victoria, labour hire companies – and the people running them – must measure up to a range of new checks and requirements.

The new laws build on existing licensing laws, which require labour hire providers to hold a licence, to comply with specified laws and standards, and to be run by appropriate people.

The changes further strengthen the ability of the Labour Hire Authority (LHA) to address unlawful conduct, improve industry integrity and transparency, and to protect workers.

Since being established in 2019 to oversee labour hire licensing in all industries, LHA has taken significant strides through strong industry engagement, compliance and enforcement action.

With outcomes benefiting many thousands of workers, as well as 5,655 licensed Victorian labour hire providers, LHA has taken the following actions (as at 30 June 2026):

  • Refused over 500 licence applications
  • Cancelled over 1,000 licences
  • Achieved almost $4 million in penalties through legal action
  • Engaged with over 4,000 businesses and other stakeholders through over 400 sessions.

Many Victorian businesses and industry bodies have also contributed to what has been achieved so far – by doing the right thing, by helping to set an example, and by spreading the message about the importance of making labour hire fairer.

Understanding and complying with the new law helps to further support a fairer industry for legitimate operators, and to protect labour hire providers and hosts from disruption or significant penalties.

Maximum penalties per breach of the Labour Hire Licensing Act 2018 (Vic) exceed:

  • $660,000 for a company
  • $160,000 for an individual.

New obligations from 1 June

All licence holders should ensure their business and its decision-makers measure up to the new standards – especially the new obligations in effect from 1 June 2026:

  • Decision-makers, and anyone else that exerts control over a labour hire business, must pass a stronger ‘fit and proper person’ test.
  • A business’s history and capacity for compliance, with a broader range of relevant laws, can be considered in LHA licensing decisions – including cancellations and application refusals.
  • A business must declare that it is financially viable, and provide evidence if required, to satisfy LHA of its viability.

Each of these is outlined in further detail below. As the Labour Hire Legislation Amendment (Licensing) Bill applies to all Victorian labour hire licence holders and applicants, LHA recommends seeking high-quality professional advice relevant to your business.

For providers operating in industries with higher risks of worker exploitation and unlawful conduct, LHA applies standard conditions to all new licences, as well as progressively to existing licences. 

In the high-risk industries of horticulture, meat and poultry processing, commercial cleaning, and security, these standard conditions act to further: 

  • increase transparency, by ensuring all workers receive information on their rights, and through reporting on the use of subcontractors, payroll services, and any change in industry 
  • enforce integrity, through restrictions on cash payments, the use of independent contractors and subcontractors, and clear requirements around accommodation and provision of PPE. 

Stronger tests for people controlling labour hire companies

LHA now considers new factors to determine whether a person is fit and proper, including character, professionalism and integrity.

Businesses also need to declare whether a nominated officer or relevant person is under the control of, or substantially influenced by, another person or body corporate not already listed as a relevant person.

This may include:

  • a shareholder or investor in a business
  • an external adviser whose guidance is routinely followed
  • the holding company of a subsidiary, where there is a relationship of control or influence under the Corporations Act 2001 (Cth)
  • a spouse or relative who exercises substantial influence over a business.

A business will need to provide the contact details of the person or body corporate that they are under control of, or substantially influenced by; and a description of the nature of the relationship and how they influence relevant persons or the business.

For example, this may be a non-director owner or a person acting as a shadow director. For organisations, the ABN and ACN or ARBN are also required. If a person or body corporate controlling or influencing the applicant or its relevant persons is not fit and proper, LHA may refuse the application.

LHA may conduct checks to identify undisclosed persons or body corporates that are controlling or influencing the business or its relevant persons. Failure to disclose may result in licensing action, including refusal or cancellation of a licence.

New information required in licence transactions

Licence holders and applicants are assessed on the capacity of their business, and its decision-makers, to comply with the Labour Hire Licensing Act 2018 (Vic) through licence transactions like applications or renewals.

Depending on the nature of the business and individual circumstances, new information that businesses will supply to LHA in key transactions may include:

  • information and supporting documents to determine the fit and proper person status of the applicant, the nominated officer and all relevant persons
  • details of any persons that control or influence the licence holder
  • a declaration of compliance with an expanded list of relevant laws
  • a declaration that the licence holder is financially viable, with supporting information and documents
  • tax and superannuation information relating to independent contractors
  • evidence of approval to engage apprentices or trainees from VRQA, if relevant
  • details of any cash payments to workers, any deductions from worker payments and the address of any accommodation provided to workers. 

An overview of how these changes affect specific transactions is available on the relevant page:

LHA recommends seeking high-quality professional advice relevant to your business as needed.

Business compliance plan

LHA now has more scope to assess compliance with relevant laws to make licensing decisions – including to refuse an application or cancel a licence – by considering:

  • previous, current and ongoing compliance with relevant laws
  • a wider range of relevant laws, in addition to the existing labour hire and workplace laws, including laws relating to bankruptcy, consumer protection, fair trading and corporate regulation.

To assess a business’s compliance capacity, LHA may request a copy of a business compliance plan that explains how a business operates and ensures compliance with its legal obligations.

The plan must be specific to the industry, workforce and business model of a business. Generic, templated or marketing style business plans may not be accepted. The plan should explain how compliance is built into day-to-day operations, not simply list policies or legal obligations.

A business compliance plan should address, at a minimum:

  • business operating model (industry, workforce, hosts, use of subcontractors)
  • how this model meets legal obligations in practice, including workplace, employment, tax, super, work health and safety, migration and labour hire laws
  • key compliance controls relevant to the industry and business model.

Standard licence conditions for providers in high-risk industries

For providers operating in industries with higher risks of worker exploitation and unlawful conduct, LHA applies standard conditions to all new licences, as well as progressively to existing licences.

In the high-risk industries of horticulture, meat and poultry processing, commercial cleaning, and security, these standard conditions act to further:

  • increase transparency, by ensuring all workers receive information on their rights, and through reporting on the use of subcontractors, payroll services, and any change in industry
  • enforce integrity, through restrictions on cash payments, the use of independent contractors and subcontractors, and clear requirements around accommodation and provision of PPE.

Failure to comply with licence conditions can lead to licensing action – up to and including cancellation – and legal action where required to address unlawful conduct.

Maximum penalties of more than $160,000 apply for non-compliance with licence conditions.

For more information and guidance, visit the Licence conditions page.

New licensing requirements for construction businesses

Later in 2026, the final changes to the Act will take effect, to further clarify the definition of labour hire services, to better cover arrangements in supply chains, and to define specific construction activities as labour hire in the Regulations.

Further information will be provided as it becomes available.

More information

As the Labour Hire Legislation Amendment (Licensing) Bill applies to all Victorian labour hire licence holders and applicants, LHA recommends seeking high-quality professional advice relevant to your business.

Members of the LHA Enquiries team are unable to provide advice regarding specific individual circumstances, but can provide general advice in relation to these changes. The Enquiries team can be reached by email at enquiries@labourhireauthority.vic.gov.au or phone on 1300 545 200.