Victorian Labour Hire Licensing: What Hosts and Workers Need to Know
Understand what host employers must verify before engaging a provider, and what workers can expect from a licensed RELAY Labour Hire placement under the Labour Hire Licensing Act 2018.
Since the Labour Hire Licensing Act 2018 (Vic) commenced operation, every provider supplying workers to a host in Victoria has been required to hold a current licence issued by the Labour Hire Authority. The framework is now a settled part of how procurement, HR and operations teams evaluate workforce partners - and the penalties for getting it wrong are substantial.
Why the regime exists
The legislation was introduced after sustained evidence of worker exploitation in industries that rely heavily on labour hire, particularly horticulture, meat processing and cleaning. The Act sets a minimum standard for providers around fitness and propriety of officers, compliance with workplace and migration law, and the obligation to engage workers on lawful terms.
For RELAY Labour Hire, the licence is more than a regulatory tick - it is the spine of our compliance program. Every worker we place is engaged directly by us as the legal employer, paid through PAYG, and covered by our workers compensation policy.
What a host must verify
Hosts can be prosecuted for using an unlicensed provider, so the verification step is non-negotiable. Before signing a service agreement, procurement and HR teams should:
- Confirm the provider's current licence on the Labour Hire Authority's public register.
- Request a copy of the licence and check expiry, conditions and any notations.
- Capture the licence number on the service agreement and renewal calendar.
- Confirm the provider's insurance currencies (public liability, workers compensation) and right-to-work checks.
What a worker can expect
A licensed provider must engage workers on lawful pay and conditions, provide a written contract or Fair Work Information Statement, and meet superannuation and tax obligations. Workers should expect transparency on pay rates, hours, rosters and the identity of the legal employer.
If something looks wrong - cash-only payments, fees being deducted for placement, a refusal to provide a payslip - workers can report directly to the Labour Hire Authority. RELAY Labour Hire publishes our licence number on every offer of placement so workers can verify before they accept.
Where this is heading
Victoria, Queensland, South Australia and the ACT now operate state-based licensing schemes. The Commonwealth has signalled an intention to harmonise the rules under a national framework. In the meantime, the safest path for procurement teams is to insist on a licensed provider in every jurisdiction where the local scheme applies.
