New condition to drive compliance with worker accommodation standards

From June, a new condition targeting substandard worker accommodation is being applied to licences granted to new providers in high-risk industries.

In horticulture and meat processing – and in certain areas within other industries – it is common for labour hire providers to supply workers with accommodation.

Substandard housing has historically caused significant risk and harm to labour hire workers, through issues such as:

• overcrowding
• poor maintenance or substandard cleanliness
•  insufficient safety measures
• inadequate facilities or non-functional waste management.

Under the Labour Hire Licensing Act 2018 (Vic), providers must inform the Labour Hire Authority (LHA) if they intend to procure or provide worker accommodation. Housing must comply with applicable standards, such as the Public Health and Wellbeing Act 2008 (Vic), and accommodation must be registered with the relevant local council where required. 

LHA compliance officers routinely inspect worker accommodation during site visits, especially where risks to workers’ health, safety and wellbeing are identified.

If housing is found to be substandard, LHA may require a provider to move workers to alternative premises and/or to cease or refund deductions made from workers’ wages for accommodation. Any non-compliance with relevant laws may also result in licensing action, including cancellation.

The laws that apply depend on the size, nature and location of worker accommodation. LHA encourages providers to consider engaging a reputable adviser to ensure compliance.

Local councils, the Fair Work Ombudsman and other regulators may also enforce accommodation-related standards, such as those relating to public health, fire safety and deductions on workers’ wages, where applicable.

In 2025, the Supreme Court of Victoria imposed penalties totalling $255,000 on a horticulture company and two individuals, following an LHA investigation which identified a range of non-compliance, along with overcrowded and substandard worker accommodation.

In December 2025, LHA imposed conditions on a company’s labour hire licence after identifying health and safety concerns regarding accommodation provided to 35 PALM Scheme workers.

LHA’s action resulted in workers being moved into newly built accommodation where each worker had their own bedroom and improved cooking and bathing facilities.

Standard licence conditions on worker accommodation

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

These conditions respond to the significant risks of worker harm and clarify the expectations for licence holders who procure or provide accommodation.

Under these conditions, labour hire licence holders are ultimately responsible for the standard of accommodation they procure or provide for their workers, regardless of other parties involved – such as real estate agents, property owners or operators of a motel, rooming house or caravan park.

To comply with the licence conditions on worker accommodation, labour hire providers must:

• ensure housing procured for or provided to workers meets the applicable minimum standards
• take reasonable steps to ensure it remains compliant throughout the time workers live there.
  

Providers should establish and document processes for:

• regular monitoring of the condition of the accommodation
• maintenance and repairs
• collecting regular feedback from workers on their comfort and wellbeing
• monitoring ongoing compliance with minimum standards.

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 also apply for non-compliance with licence conditions.

More information

For more information on licence obligations when providing or procuring accommodation, visit Accommodation.

For more information and guidance on standard licence conditions on worker accommodation, visit Licence Conditions.