Recruitment and placement services

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From 1 October 2026, the definition of providing labour hire services under the Labour Hire Licensing Act 2018 (Vic) has been amended. You should review these changes to determine whether you or the entities you source labour from are now required to hold a labour hire licence.

Substantial penalties may apply if you provide labour hire services without a licence or engage an unlicensed provider.

The Labour Hire Licensing Regulations 2018 have also been amended to support these legislative changes. View the amendments on the Victorian Legislation website.

Recruitment or placement services are a form of labour hire where a provider recruits or places one or more individuals with another person under an arrangement entered into between the provider and that person.

The arrangement is wholly or principally for the recruitment of workers to supply labour for, or the placement of workers with another person to perform labour for that person. The provider must also provide or procure accommodation for some or all of the period during which the workers perform the labour.

There is no requirement for the provider to employ or pay the workers. Workers may instead be engaged or paid by the host or through one or more intermediaries.

Under Victorian law, labour hire providers must hold a licence, and businesses must only engage licensed providers to supply workers.

Licensing helps to ensure labour hire companies meet their obligations to workers, and supports fairness, transparency, and integrity in the industry. 

Labour hire providers must comply with a range of legal obligations, including around worker pay and conditions, superannuation and taxation.

Senior decision-makers, and anyone else who influences or controls the business, must also be ‘fit and proper’ – in terms of their legal and compliance history, as well as their honesty, integrity and professionalism. 

The Labour Hire Authority (LHA) oversees Victoria’s labour hire licensing scheme, including its monitoring, compliance and enforcement. 

Under the Labour Hire Licensing Act 2018 (Vic), penalties for using or providing unlicensed labour hire services may exceed:

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

Penalties also apply for advertising labour hire services without a licence, or before a licence application is approved. Any subcontractors to a labour hire provider must also be licensed.

More information

For information on legal obligations, licence applications, renewals and further resources, visit the Provider page.

Providers can apply for and renew a licence via the Labour Hire Licensing Online portal.

Providers must pay a licence application fee at application and licence renewal. Licence fees are also payable annually. For more information, please visit the Licence fees and costs.

Guidance and resources

Scenarios: When is a labour hire licence required?

The examples below are for illustrative purposes only. You should consider your particular circumstances and seek legal advice if you are unsure.

Scenario 1

Wonderful Workers Pty Ltd (Wonderful Workers) enters into an arrangement with Big Machinery Pty Ltd (Big Machinery) to recruit workers for a sugar mill project. The workers are employed and paid by Big Machinery, but Wonderful Workers is responsible for onboarding and providing accommodation, including renting houses near the work sites for the duration of the project.

Considering the arrangement as a whole, the arrangement is wholly or principally for the recruitment of workers to supply labour for Big Machinery and includes the provision of accommodation. Wonderful Workers is providing labour hire services under section 8(1) and must hold a labour hire licence.

Scenario 2 

John Smith, a sole trader operating as Super Staff, enters into an arrangement with LRC Ltd to recruit workers for a mineral exploration project. LRC Ltd pays the workers. John Smith arranges accommodation for the workers through a third party, Amazing Accommodation Pty Ltd for part of the duration of the project.

Considering the arrangement as a whole, the arrangement is wholly or principally for the recruitment of workers to supply labour for LRC Ltd and includes the procurement of accommodation. John Smith (trading as Super Staff) is providing labour hire services under section 8(1) and must hold a labour hire licence.

Scenario 3

Recruitment Specialists Pty Ltd (Recruitment Specialists) enters into an arrangement with LRC Ltd to recruit workers for maintenance work. Recruitment Specialists does not pay the workers and does not provide or procure accommodation.

In this case, the arrangement is limited to recruitment services. As Recruitment Specialists does not provide or procure accommodation, one of the elements of section 8(1) is not satisfied. Recruitment Specialists is not providing labour hire services under section 8(1) and is not required to hold a labour hire licence.