LABOUR HIRE LICENSING INSURANCE

AN OVERVIEW OF LABOUR HIRE LICENSING INSURANCE

As a labour hire provider, there are numerous complexities to navigate in the supply of on-hired employees and on-hired contractors to host employers. One of the first steps you’ll face is establishing your business within the appropriate licensing schemes and labour hire insurance.

These schemes depend on each individual Australian State or Territory and are designed to protect all stakeholders (e.g. labour hire companies, workers, contractors, host employers, the public).

WHO DOES IT AFFECT?

THE LABOUR HIRE LICENSING INSURANCE REQUIREMENTS ARE STATE/TERRITORY BASED, AND MAY IMPACT YOUR LABOUR HIRE BUSINESS IF:

• You provide labour hire staff within your own State(s)/Territory(ies); and/or
• These labour hire staff are placed in roles within State(s)/Territory(ies) have a licensing scheme

The legislation will not only mandate businesses to obtain a license to provide labour hire, but host employers (your clients) will also be restricted to only use those organisations who are appropriately licensed and insured.

WHAT IS THE PURPOSE?

• Protect labour hire workers (from being underpaid and exploited)
• In addition, protect the host employers who use these workers

LABOUR HIRE SERVICES PROVIDERS WILL BE OBLIGATED TO:

• Pass a ‘fit and proper person’ test, which will include:
  • An unblemished corporate criminal history
  • No connections or links to criminal organisations
  • No previous cases of bankruptcy, or insolvency
  • The need to be financially viable; and
  • Demonstrate compliance with relevant work place legislations (for example, Work Health Safety)

ONCE A LICENSE HAS BEEN ISSUED, THERE ARE EXTENSIVE REPORTING REQUIREMENTS, FOR EXAMPLE:

• provide details of the number of workers deployed
• location of the workers
• details of the role, or type of work, they are performing
• information on the labour hire agreements between the workers and license holder
• details on the disciplinary, or enforcement actions, against license holders
• notice on the number of notifiable incidents and workers compensation claims made (QLD only)

ANY FAILURE TO OBTAIN, OR ADHERE TO, THE RELEVANT LABOUR HIRE LICENSING CAN RESULT IN:

• Penalties of up to $400,000 for corporations;
• Penalties of up to $130,439 for individuals; and/or
• Three (3) years jail time

WHICH STATE(S)/TERRITORIES HAVE LABOUR HIRE LICENSING:

BELOW ARE LINKS TO FURTHER DETAILS:

• ACT (Australian Capital Territory): legislation is in effect and requires a Labour Hire License
• NSW (New South Wales): not currently under review
• NT (Northern Territory): not currently under review
• QLD (Queensland): legislation passed 16th April 2018; click here
• SA (South Australia: legislation passed 1st March 2018; click here
• TAS (Tasmania): not currently under review
• VIC (Victoria): legislation passed; click here with amendments occuring in October 2026
• WA (Western Australia): not currently under review

MORE INFORMATION:

PLEASE FEEL FREE TO CONTACT US WITH ANY QUESTIONS, OR YOU MAY FIND THE FOLLOWING LINKS USEFUL:

• RCSA Resources on Labour Hire Licensing  click here
• LegalVision Current Requirements per State/Territories  click here