Recent data released by the Victorian Labour Hire Authority highlights the importance of engaging reputable labour hire companies in delivering on-hired employment services.   

In Victoria, it is a legal requirement for all Labour Hire companies to be registered with the Authority. Licensing is also required in Queensland and for specific industries in South Australia, although requirements differ slightly. Western Australia has further differences; you need a licence if you intend to operate as an employment agent, which includes permanent recruitment.  

The Victorian Labour Hire Authority (Authority) was established to implement the Labour Hire Licensing Act 2018 (Vic), with the aim of protecting workers from labour hire providers who are unwilling and/or unable to comply and prevent exploitation. This was a direct response to non-compliance by some providers and host employers, which is why the Authority places the onus on both parties. 

The Authority’s current Annual Report highlights that during the past financial year: 

• 585 Labour Hire licences had been cancelled 
• 92 applications were refused 
• 460 notices of intention to cancel licenses were issued 
• 289 investigations were still active 

These statistics indicate the Victorian Government regulator is actively investigating labour hire providers across the state, and a significant number are falling short. Labour Hire providers that choose to operate without a licence face substantial fines - with maximum penalties exceeding $600,000 for a corporation or $150,000 for an individual. 

These fines equally apply to businesses that utilise unlicensed providers for labour hire services. For organisations engaging labour hire providers, it is essential to have mechanisms in place to check validity of licences and consider putting into Agreements termination clauses for instances where licences are cancelled. 

Acclaimed Workforce is a licensed labour hire provider. Our organisations seek to partner with our clients to offer a suite of workforce management solutions to meet compliance and strategic business needs.