Labour hire licensing: where you need a licence

What changed

In Victoria, businesses that supply workers to another business generally need a labour hire licence. From 1 October 2026, the rules make it clearer that this can include businesses supplying workers anywhere in a labour supply chain, even if they don't directly employ the workers. The law covers work performed in Victoria, regardless of where the provider or client is based. It can also apply where the labour hire arrangement is made in Victoria but the work is performed elsewhere. Significant penalties apply to both providers operating without a licence and businesses that use an unlicensed provider.

Further changes are proposed in Victoria. Subject to consultation, from 29 October 2026 the Victorian Government proposes to treat additional construction work as labour hire: traffic management, concreting, crane operating and site security on Victorian Government-funded projects worth more than $50 million. If it goes ahead, supplying workers for these activities on those projects would require a labour hire licence, and host businesses would need to use licensed providers. Maximum penalties exceed $660,000 per breach for a company. We'll update this page once the change is confirmed.

In Queensland, businesses that supply workers to work for another business generally need a labour hire licence. This includes employment agencies that on-hire temporary workers and group training organisations that supply apprentices or trainees. Businesses using labour hire must also use a licensed provider. Significant penalties apply for operating without a licence or using an unlicensed provider.

South Australia expanded labour hire licensing to all industries from 29 January 2026. Labour hire providers must be licensed, and businesses using labour hire must use a licensed provider. Consumer and Business Services manages the scheme. Significant penalties apply for operating without a licence or using an unlicensed provider.

In the ACT, labour hire providers must hold a licence, and businesses using labour hire must use a licensed provider. WorkSafe ACT manages the scheme. Significant penalties apply to both providers operating without a licence and businesses that use an unlicensed provider.

NSW, Western Australia, Tasmania and the Northern Territory do not currently have a general labour hire licensing scheme. In WA, labour hire companies are also specifically exempt from employment agent licensing. Work has been underway on a nationally consistent labour hire licensing scheme, but no national scheme is currently in place.

Who it affects

• Labour hire and recruitment businesses that supply workers in Victoria, Queensland, South Australia or the ACT - including some interstate providers.
• Host businesses using on-hired workers in those jurisdictions, which can be penalised for using an unlicensed provider.
• Businesses involved in labour supply chains, even where another provider directly employs or pays the workers.

What to do

• Map where your on-hired workers actually do their work, state by state.
• Check the relevant public licence register before engaging a labour hire provider, and recheck their licence regularly.
• Ask providers further down the supply chain for their licence details too.
• If you operate in Victoria, review your labour supply chain against the rules taking effect from 1 October 2026.
• If you operate in WA, remember that there is currently no labour hire licence; however, other employment, safety and industry-specific requirements can still apply.