Labour Hire Licensing Scheme in Victoria

Introduction

Following the recommendations of the Victorian Inquiry into the Labour Hire Industry and Insecure Work, the Victorian Government passed the Labour Hire Licensing Act 2018 (Vic.) (the Act). Obligations under the legislation commenced from 30 October 2019.

The Victorian Labour Hire Licensing Scheme aims to regulate labour hire arrangements, and protect vulnerable labour hire workers from exploitation by the providers of labour hire services and businesses or organisations that use the services of labour hire providers (otherwise known as hosts).

The Act imposes obligations on both labour hire providers and hosts. Certain providers of labour hire services are now required to hold a licence to operate in Victoria and hosts must only use licensed labour hire providers. Hosts that engage labour hire providers which do not hold a licence could face significant penalties.

The Information sheet – Labour Hire Licensing Scheme provides information about the requirements of labour hire providers to be licensed in Victoria, and the obligations of employers when engaging labour hire providers.

What are ‘labour hire services’?

A licence is required to be held by a person who ‘provides labour hire services’. A person provides labour hire services if both of the following are met:

  • in the course of conducting business, they supply one or more individuals to another person (host) to perform work in, and as part of, the host’s business or undertaking
  • the individuals are workers for the provider.

An individual is a ‘worker’ for a provider where the arrangement between the host and the provider involves the provider supplying the individual to the host to perform work and, in this arrangement, the provider is obliged to pay the individual for the performance of that work, whether directly or indirectly through one or more intermediaries.

Workers in schools which are typically engaged through a labour hire provider, include (but are not limited to):

  • emergency teachers
  • temporary administrative staff
  • cleaners.

For further information about when a labour hire provider is required to hold a licence, please see the Information Sheet – Labour Hire Licensing Scheme.