Several Australian States require labour hire licences, including Queensland, Victoria and South Australia. Australia’s labour hire industry is important for businesses to have the flexibility and workers they need to succeed.
Certain States and Territories have strict regulations regarding labour hire licences. The licensing schemes seek to ensure the protection of workers and the integrity of the labour market.
This article outlines when and where you might need a labour hire licence in Australia. Our lawyer also explains how to obtain a licence and the rules businesses must follow.
Consulting a lawyer experienced in labour hire arrangements can help navigate these complex licencing regulations and ensure full compliance. Several other legal considerations exist for labour hire agreements as well.
Labour hire licensing is a regulatory framework designed to protect workers from exploitation and ensure that labour hire providers operate legally and ethically.
The requirements for a labour hire licence varies across different States and Territories in Australia. Queensland, Victoria, the Australian Capital Territory and South Australia have their own licensing schemes. While other States and Territories may not have official licensing regimes, other laws can apply.
Not all labour hire arrangements require a licence, as some exceptions apply. We have outlined these further below.
Labour hire providers in Queensland (QLD) are regulated by the Labour Hire Licensing Act 2017 (QLD) (QLD Act) and the Labour Hire Licensing Regulation 2018 (QLD).
The QLD scheme applies to your business if you:
The QLD scheme strictly prohibits parties from supplying labour hire services without a licence. It also further penalises parties who engage labour hire from an unlicenced provider.
The QLD Act adopts a broad definition of ‘worker’ (compared to other jurisdictions). The definition includes anyone that one party supplies to engage in work for another party.
To obtain a labour hire licence in Queensland, businesses must register and submit an application online.
The information required for the application includes details of:
The cost of a licence depends on the amount of money a business paid its employees in the previous year. For new licensors, the amount the business plans to pay its employees in the future. For example, for companies paying less than $1.5 million in wages, the cost is roughly $1,100. Whereas a company paying more than $5 million in wages will have a fee of nearly $6,000.
QLD issues licences for up to 12 months and licence holders can renew them annually. Renewal fees also apply.
The labour hire industry in South Australia (SA) is regulated by the Labour Hire Licensing Act 2017 (SA) (SA Act) and the Labour Hire Licensing Regulations 2018 (SA).
The SA scheme applies to your business if:
Similar to QLD, SA only authorises licensed providers to offer labour hire services. The definitions of a ‘provider’ and a ‘worker’ under the SA scheme are nearly identical to QLD’s legislation.
However, unlike QLD, the law in SA does not exclude any person or group of persons from the definition of a “worker”. Essentially, SA laws may apply to employees who QLD laws do not cover.
To obtain a labour hire licence in SA, businesses must register and submit an application online.
The information required for the application includes details of:
The application cost depends on the type of person or entity applying for the licence and range between $600 to $700.
Labour hire licences are valid for 12 months in SA. You must renew them annually, for an additional fee.
The labour hire industry in Victoria (VIC) is regulated by the Labour Hire Licensing Act 2018 (VIC) (VIC Act) and the Labour Hire Licensing Regulations 2018 (VIC).
The VIC scheme applies to your business if you:
The Victorian definition of labour hire covers specific recruitment or placement services and contractor management services.
To obtain a labour hire licence in VIC, businesses must register and submit an application online.
The information required for the application includes details of:
The cost of the application varies depending on the applicant’s type and annual turnover.
Labour hire licences in Victoria can last for a period of up to 3 years. Annual and renewal fees apply.
The labour hire industry in the Australian Capital Territory is regulated by the Labour Hire Licensing Act 2020 (ACT)(ACT Act) and the Labour Hire Licensing Regulation 2021 (ACT).
The ACT scheme applies to your business if you:
In the ACT, the definition of a labour hire provider and worker is similar to the other jurisdictions.
To obtain a labour hire licence in the ACT, businesses must register and submit an application online.
The information required for the application includes details of:
The cost of an ACT labour hire licence is currently $3,106. Authorities issue licences for up to 1 year and individuals can renew them annually.
Each region has their own set of exemptions.
For example, you may not need a labour hire licence if you are:
Businesses must follow the laws related to their region to make sure they are compliant.
Businesses can hire workers from licensed labour hire providers without needing their own licence for labour hire workers.
Each region has their own set of requirements for licencing. Some compliance obligations for labour hire providers can include:
Labour hire providers must also provide their workers with certain information in relation to the labour hire arrangement.
Licencing inspectors can also conduct audits and monitor labour hire providers’ compliance with the schemes.
Operating without a labour hire licence can lead to significant penalties, including hefty fines and potential legal action. These consequences apply for not complying with licence conditions as well.
Penalties range across Australia from $100,000 for individuals, all the way up to $2,500,000 for companies. The authorities may also seek imprisonment.
Importantly, hiring an unlicensed labour provider can also lead to unwanted legal responsibility under contract law. As breaching the relevant legislation in your region may result in a contract being void.
To avoid penalty, businesses should ensure that they do not:
Businesses should have rigorous labour hire or contractor engagement policies and procedures in place.
This can help ensure compliance with the schemes. Furthermore, someone should regularly audit these. The consequences for businesses and individuals for failure to do so are significant.
A labour hire licence is a regulatory requirement for businesses supplying workers to third parties. Labour hire providers must have a licence in certain regions. This ensures ethical operation and worker protection in labour hire arrangements.
You can also read more about the legal side of using labour hire services in Australia.
Labour hire providers in Queensland, the Australian Capital Territory, Victoria, and South Australia must obtain a licence. You do not need a licence if an exemption applies.
Companies must ensure that they use a licensed labour hire provider. Fines may apply to businesses that hire people from unlicensed providers.
Not all State and Territories have a labour hire licensing regime. However, other labour hire provider laws apply separately to Queensland, the Australian Capital Territory, Victoria, or South Australia. For example, the Work Health and Safety Act 2020 (WA) regulates labour hire arrangements in Western Australia.
If you provide workers to a business in a licensed region, you must follow the rules of that State or Territory. This may mean obtaining a licence to service that region.
You can also use a labour hire licence from another region to support your application in a new region.
A lawyer specialised in labour hire arrangements can help you navigate your national legal requirements.
Yes, however this depends on your region. Most State or Territory authorities have a ‘register’ of current licences on their websites. Remember that there may be penalties for accepting workers from a labour hire provider without a valid licence.
We recommend checking with the relevant State or Territory authority for more information or speaking to an experienced labour hire lawyer.
Businesses have received fines for not using a licensed a labour hire provider in QLD. The QLD authority fined Better Crop Management Pty Ltd $195,000 in 2021. They fined them for using an unlicensed labour hire provider for their crop harvesting. They also fined the unlicensed labour hire provider $50,000.
You may need to demonstrate that you are a ‘fit and proper’ person when applying for a labour hire licence.
The requirements to prove this differ between licensed regions. For example, in VIC, this means providing evidence that details any:
In QLD, this means submitting a formal fit and proper person declaration with the online application.
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