Labour hire law expands in construction industry

The new legal definition of labour hire has been broadened in Victoria’s construction industry, to further address unlawful conduct and improve integrity.

The new Regulations were gazetted on 27 October 2026 following consultation undertaken by Industrial Relations Victoria (IRV). For details about the consultation, visit Engage Victoria.  

The broader laws cover the following activities on Victorian Government-funded construction projects with a total cost over $50 million: 

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

Under the new Regulations, companies performing the prescribed activities will require a labour hire licence and it will be unlawful to engage an unlicensed company to perform these activities.  

The new Regulations apply in Victoria’s construction industry from 18 January 2027.  

With a high volume of of additional compliance checks being completed during the application period, licence applications may take six or more months to progress to decision.  

While LHA completes compliance checks, businesses requiring a licence due to the new Regulations may continue to trade after 18 January 2027 if their full and proper application is received by that date. All applications will be recorded on the Licence Application Register.  

Any company found providing the newly prescribed services without having applied for a licence by the deadline – and any company that uses their services – faces penalties exceeding: 

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

The licence application deadline of 18 January 2027 only applies to businesses newly covered by the broader laws, not to those that already require a labour hire licence, including most businesses supplying security guards and cleaners of commercial premises (including construction sites) in Victoria.  

Significant penalties apply for providing unlicensed labour hire services, so businesses should promptly seek advice if unclear on their legal obligations.  

Support for compliance with the new laws

To raise awareness and support industry compliance as these new laws are implemented, LHA is undertaking a range of education activities, including:

• Informing major contractors on Victorian Government projects, and relevant industry associations, through direct correspondence from the Commissioner 
• Launching a dedicated web page providing more information about the new laws, including the projects and construction activities covered by the new Regulations 
• Offering tailored information sessions between 13 and 24 November, for: 
  • companies now requiring a licence (labour hire providers) 
  • companies that engage companies now requiring a licence (labour hire hosts). 

For more information, visit the web page: New Licensing Obligations for the Construction Industry. 

To register for an information session, visit the Events page – each session will cover:

• Licensing requirements for traffic management, security, concreting & crane operating  
• Legal obligations of head contractors with respect to companies performing the prescribed activities 
• Recent changes to labour hire law and increased compliance requirements throughout supply chains  
• Key recent and upcoming LHA actions in the construction industry 
• An opportunity to ask questions and discuss the changes. 

For more information on labour hire in the construction industry, including current LHA enforcement action, visit Construction industry. 

For more information on labour hire licensing requirements, and to start an application, visit Apply for a Licence. 

Changes to address identified risk and harms

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