Construction companies blocked from Victoria following LHA investigations

The Labour Hire Authority (LHA) has blocked two construction companies from operating in Victoria, following investigations into the businesses and the people running them.

The cases were unrelated, but both involved a failure to declare relevant persons – key decision-makers within the company – to LHA, as required under the Labour Hire Licensing Act 2018 (Vic).

Under the Act, labour hire providers must supply LHA with information and identification for all relevant persons, to enable a range of checks to assess whether they are ‘fit and proper’ to operate a labour hire business.

“Knowing who is actually running labour hire businesses is a cornerstone of how labour hire licensing improves industry transparency," said Labour Hire Licensing Commissioner, Steve Dargavel.

Not fit and proper – Women in Construction Pty Ltd

In June, LHA refused an application by Women in Construction Pty Ltd to renew its labour hire licence, as LHA was not satisfied director Luke Ellery and other relevant persons were fit and proper.

It was also identified that multiple relevant persons had not been disclosed to LHA. Labour hire companies face licence cancellation and potential penalties if a relevant person is not disclosed and/or is found not to be fit and proper under the Act.

From 1 June 2026, Victoria’s labour hire laws became stronger and broader, including a more rigorous ‘fit and proper person test’ for people involved in running labour hire companies.

Commissioner Dargavel explained the stronger test had been applied in this case.

“We refused Women in Construction’s licence based on factors including Mr Ellery’s business compliance history, and his character – including his honesty, integrity and professionalism."

“This character test is one of the new and powerful tools we have available after Victoria’s strengthened labour hire laws came into effect last month,” said Commissioner Dargavel.

Under the legal changes from 1 June, providers 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.

LHA now has more scope to consider previous, current and ongoing compliance with relevant laws, as well as a wider range of relevant laws, to make licensing decisions – including to refuse an application or cancel a licence.

For more information, visit Changes to labour hire laws: what providers need to know.

Shadow operator spotlighted – 24/7 Personnel Pty Ltd

In May, LHA cancelled the labour hire licence of construction company 24/7 Personnel Pty Ltd, after finding the company failed to declare Jay (Jie) Zhu as a relevant person within the business.

LHA also found that the company knowingly provided false and misleading information to LHA about Jie Zhu’s role in the business – a criminal offence under the Act.

LHA made no determination on the fit and proper status of Jie Zhu – the failure to disclose a relevant person, and the knowing provision of false and misleading information, provided sufficient grounds to cancel the licence.

"If you attempt to operate a labour hire company from the shadows, you’ll be under the spotlight," said Commissioner Dargavel.

“Making sure we have fit and proper people running labour hire companies is critical to improving integrity in Victoria’s construction industry.”

Continued focus on construction

The licensing actions are part of a continuing focus on the construction industry by LHA and other government agencies.

LHA licensing actions in the construction industry (as at 30 June 2026) include:

• 50 licence applications refused
• 164 licences cancelled
• 40 licences with conditions imposed.

LHA continues to publish the details of recent enforcement actions in the industry on its construction industry webpage.