Labour hire licensing is a critical regulatory framework in Australia designed to protect workers from exploitation and ensure ethical business practices. For businesses operating in the labour hire industry, understanding the licensing requirements across different states and territories is essential to remain compliant and avoid significant penalties.
This article is written by our labour hire lawyers. We provide an overview of labour hire licensing laws in Australia, their purpose, and how businesses can navigate these regulations effectively.
Key Takeaways
- Labour hire licensing laws vary across Australia, with Queensland, Victoria, the Australian Capital Territory (ACT), and South Australia having their own schemes.
- Labour hire providers must obtain a licence to operate legally in these jurisdictions.
- Non-compliance can result in severe penalties, including fines and reputational damage.
- Exemptions exist for certain labour hire arrangements, such as subcontracting or volunteer placements.
- Compliance obligations include regular reporting, maintaining records, and adhering to workplace laws.
Understanding Labour Hire Licensing in Australia
Labour hire licensing is a regulatory mechanism aimed at protecting workers from exploitation and ensuring that labour hire providers operate ethically. It requires businesses that supply workers to other organisations to obtain a licence and comply with specific legal obligations.
The licensing schemes are designed to:
- Prevent underpayment and poor working conditions
- Ensure workplace safety
- Promote transparency and accountability in the labour hire industry
State-by-State Labour Hire Licensing Laws in Australia
Queensland
Legislation: Labour Hire Licensing Act 2017 (QLD)
In Queensland, labour hire providers must obtain a licence if they:
- Supply workers to another business where the workers are under the host employer’s control
- Provide workers to perform work as part of a host’s business
Application Requirements:
- Financial solvency and compliance with workplace laws
- Fit and proper person assessment
- Details of work health and safety compliance, workers’ compensation, and migration matters
Fees:
- Based on annual wages paid to employees (e.g., $1,100 for wages under $1.5 million, up to $6,000 for wages over $5 million)
Licence Duration: 12 months, renewable annually
Victoria
Legislation: Labour Hire Licensing Act 2018 (VIC)
In Victoria, a licence is required if a business:
- Supplies workers to perform work as part of a host’s business
- Recruits workers for a host and provides lodging or manages contracts for independent contractors
Application Requirements:
- Number of workers supplied and their employment status
- Fit and proper person assessment
- Compliance with industrial instruments such as awards or enterprise agreements
Fees:
- Vary based on the applicant’s type and annual turnover
Licence Duration: Up to 3 years, with annual renewal fees
South Australia
Legislation: Labour Hire Licensing Act 2017 (SA)
In South Australia, labour hire providers must obtain a licence if they:
- Supply workers to perform work as part of another person’s business
- Have an arrangement to supply workers to another person
Application Requirements:
- Financial solvency and relevant experience
- Fit and proper person assessment, including National Police Certificates
Fees:
- Range between $600 and $700 depending on the applicant type
Licence Duration: 12 months, renewable annually
Australian Capital Territory (ACT)
Legislation: Labour Hire Licensing Act 2020 (ACT)
In the ACT, a licence is required if a business:
- Employs workers for labour hire services
- Supplies those workers to other companies on a fee or contract basis
Application Requirements:
- Fit and proper person assessment
- Financial solvency and compliance with workplace laws
- Workers’ insurance details
Fees:
- $3,106 per licence
Licence Duration: 1 year, renewable annually.
Exemptions from Labour Hire Licensing
Certain labour hire arrangements may not require a licence. These include:
- Recruitment and permanent placement services
- Volunteer or student placements
- Workplace consultants or secondees
- Genuine subcontracting arrangements
- Acting as an agent or go-between
- It is essential to review the specific exemptions in each jurisdiction to determine whether your business requires a licence.
Compliance Obligations for Labour Hire Providers
Labour hire providers must adhere to strict compliance obligations, including:
- Maintaining records of workers hired under labour hire agreements
- Providing regular reports to the relevant authority (6–12 monthly)
- Reporting changes in circumstances to the licensing authority
- Ensuring they remain a fit and proper person to hold a licence
- Complying with workplace laws, including workplace health and safety and workers’ compensation
- Failure to comply with these obligations can result in fines, legal action, and reputational damage.
Frequently Asked Questions (FAQs)
What happens if I operate without a labour hire licence?
Operating without a licence in jurisdictions where it is required can result in significant penalties, including fines and legal action. Businesses engaging unlicensed providers may also face penalties.
How long does it take to obtain a labour hire licence?
The processing time varies by jurisdiction but generally involves submitting an online application with supporting documentation. It may take several weeks for authorities to assess the application.
Are there any exemptions to labour hire licensing requirements?
Yes, exemptions exist for certain arrangements, such as recruitment services, volunteer placements, and genuine subcontracting. However, these exemptions vary by state or territory.
Can I use one licence across multiple states?
No, labour hire licences are State–specific. Businesses operating across multiple jurisdictions must comply with the licensing requirements in each State or Territory.
What are the penalties for non-compliance?
Penalties vary by jurisdiction but can include fines, suspension or cancellation of licences, and reputational damage. For example, in Queensland, fines can exceed $400,000 for serious breaches.
