Under the Labour Hire Licensing Act 2017 (the Act), users of labour hire must only use licensed labour hire providers. Users of labour hire should be aware that they:
- must not enter into an avoidance arrangement
- should report labour hire providers avoiding their legal obligations
- may have their workplaces entered by inspectors.
Users of labour hire can ensure they are using a licensed provider by searching the register of licensed labour hire providers.
On this page:
From 15 June 2018, all labour hire providers must ensure they have:
- a licence to provide labour hire services
- submitted an application for a licence.
Labour hire providers can apply for a licence from 16 April 2018, and have 60 days to apply for a licence. The transitional period from 16 April to 15 June 2018 is to ensure that business arrangements between users and labour hire providers will not be disrupted by the commencement of the scheme.
If you continue to use a labour hire provider whose application has been refused you may be penalised for using an unlicensed provider.
By using a licensed labour hire provider you can be assured that they:
- are fit and proper people to provide labour hire
- have a history and an ability to comply with relevant State and Commonwealth laws
- are financially viable.
You must ensure you comply with your legal obligations by only engaging licensed labour hire providers.
It is an offence to use an unlicensed labour hire provider. You can find out more on the laws and compliance page.
An avoidance arrangement is an arrangement designed to circumvent or avoid an obligation to use a licensed labour hire provider or for a labour hire provider to be licensed.
It is an offence if the person knows, or ought reasonably to know, that it was an avoidance arrangement.
The Office of Industrial Relations works in partnership with other State and Commonwealth agencies to:
- stop unfair competition in the industry
- support responsible labour hire companies
- protect workers from exploitation.
Please report a problem if you have concerns or information about:
- labour hire providers operating without a licence
- a business using an unlicensed labour hire provider
- a labour hire provider not complying with relevant State and Commonwealth laws.
Users of labour hire may be audited as part of an investigation into a complaint or as part of an industry audit campaign. Inspectors will try to provide notice before entering a workplace and will ensure inspections place minimal interruption to the business.
Failing to comply with inspectors' requirements can result in penalties.
More information on workplace investigations can be found in Laws and compliance.
Users of labour hire have an essential role in maintaining healthy and safe conditions for workers.
You can help tackle unlicensed activity and exploitation of workers by:
- using the labour hire register to check if your labour hire provider has a current licence
- checking the pay calculator to calculate rates of pay your labour hire provider should be paying
- maintaining a list of all workers on your site
- understanding your obligations to labour hire workers (visit the Fair Work Ombudsman for more information)
- checking contract prices to ensure labour costs can be covered in accordance with relevant Awards and Enterprise Agreements
- setting clear expectations that you expect the labour hire provider to comply with workplace laws
- being aware of and understanding subcontracting arrangements that may take place
- informing the Office of Industrial Relations of any problems or breaches of labour hire licensing laws
- contacting us if you need advice or guidance.
To find out more about using labour hire, read the Fair Work Ombudsman's guides to contracting labour and supply chains.
Last updated 15 May 2018