• Legislation & regulations

Final amendments to make Victoria’s labour hire laws stronger and broader are anticipated to take effect from October 2026.

There are two types of changes to how labour hire is defined and who requires a licence:

• From 1 October, the general definition of labour hire will be amended to focus on whether labour supply is involved. In most cases, this will not affect when a labour hire licence is required, but will make clearer that businesses require a licence to supply labour anywhere in a supply chain.
• From 29 October, subject to a regulatory consultation process, it is proposed that additional construction activities in specific contexts be covered by labour hire law. 

These changes are the last arising from the Labour Hire Legislation Amendment (Licensing) Bill 2025 (Vic) passed in December 2025 – for more information, see Labour Hire Law Changes 2026.

Clarified licensing requirements within supply chains

From 1 October, the general definition of labour hire will be amended to focus on whether an arrangement between parties has the character of labour supply.

Within supply chains, any arrangement that has the character of labour supply will require the provider to hold a labour hire licence. This includes ‘bare intermediary’ companies – those that do not directly employ labour hire workers, but which on-supply workers employed by other companies.

There is an inherent increased risk of non-compliance in complex supply chains, due to the arrangements not always being transparent to the ultimate host business using the workers or to regulators.

This change is aimed at improving accountability for hosts of labour hire services and providers using subcontracting arrangements, to reduce the risk of worker exploitation.

Where complex supply chains exist, the changes will reduce ambiguity of licensing obligations and ensure focus on the true nature of arrangements.

Proposed new legal obligations for construction companies

Since 2019, construction companies operating in Victoria have been required by law to only use labour hire companies that hold a licence issued by the Labour Hire Authority (LHA).

From late October, it is proposed to broaden the legal definition of labour hire to cover additional construction activities in specific contexts.

Subject to regulatory consultation now underway and subsequent publication of new regulations, companies will require a labour hire licence to work on Victorian Government-funded construction projects with a total cost over $50m in the following roles:

• traffic management
• concreting
• crane operating
• site security.

Companies that meet the new definition will require a labour hire licence, and those engaging their services will be required to use companies that hold a licence.

After a brief transitional period, any company found providing these services without having applied for a licence – and any company that uses their services – will face penalties exceeding:

• $660,000 per breach by a company
• $160,000 per breach by an individual.

The proposed changes to the legal obligations of construction companies outlined above reflect the preferred option proposed by the Victorian Government in a regulatory consultation process currently being coordinated by Industrial Relations Victoria (IRV).

Any queries or feedback on the proposed laws is best directed to IRV via the consultation website, which also includes more information about what is proposed. Read more on the Engage Vic website.

Once any consultation feedback is considered and addressed, the new laws are anticipated to be finalised to take effect from 29 October 2026.

If these laws are enacted, LHA will be responsible for their implementation and enforcement, and further engagement with the industry.

For construction companies that meet the new definition of labour hire, LHA intends to apply a brief transitional period for new labour hire licence applications once the law takes effect. This timing reflects the importance of implementing these stronger, broader laws, while providing sufficient time for affected companies to submit a licence application.

Changes already in effect

The changes to the law are in addition to changes implemented earlier in 2026:

• People who are involved in running a labour hire company – as a nominated officer or relevant person – need to pass a more rigorous ‘fit and proper person test’.
• LHA has more scope to assess compliance with a wider range of laws – including previous, current and ongoing compliance – when making licensing decisions, including to refuse an application or cancel a licence.
• To apply for or renew a licence, a labour hire business now needs to declare that it is financially viable, and LHA must be satisfied that a business is financially viable.

For more information, see Labour Hire Law Changes 2026.