Labour Hire Licensing in Victoria: What Host Employers Must Check

What must a host employer check under Victoria's labour hire licensing laws?

Before using any labour hire provider in Victoria, a host employer must confirm the provider holds an active licence under the Labour Hire Licensing Act 2018 (Vic) — checked via the Labour Hire Authority's public register — because using an unlicensed provider exposes the host to penalties exceeding $660,000 for a corporation or $160,000 for an individual.

I've had manufacturers tell me they assumed licensing was "the labour hire company's problem." It isn't. As a host, the compliance risk — and a share of the safety duty — sits with you too.

What is a labour hire host, and does it include me?

If your business engages workers supplied by a labour hire provider — contract staff, cleaners, security guards, or casual production labour brought in through an agency — you're a "host" under the Act. Some industries have broader definitions of labour hire again, including horticulture, meat and poultry processing, and commercial cleaning, so it's worth checking the specific rules if you operate in one of those spaces.

A labour hire provider is defined as a business that has an arrangement with individuals to supply them to perform work in and as part of your business, and is obliged to pay them for that work.

What do you need to check before engaging a provider?

Before signing anything, the Labour Hire Authority recommends hosts:

1. Check the provider's licence status on the Labour Hire Licence Register — don't rely on paper documentation, which can be out of date or illegitimate.
2. Check how long the provider's company has been operating and confirm their industry classifications match the work you need done.
3. Ask for evidence of the provider's company structure, hierarchy of control and contracting arrangements.
4. Confirm the company offering you services is the same one listed on the Register, and check who's named as running the business.
5. If the person you're dealing with isn't a named officer, confirm their connection to the licensed provider and ask for identification.
6. Contact the provider's nominated officer directly using the Register's contact details, rather than details supplied by the person approaching you.
7. Keep a record of these checks.

What should the contract cover?

Once you've confirmed the provider is licensed, the Authority recommends a written contract that:

• properly identifies the provider and confirms workers will be paid correct wages and entitlements
• sets clear expectations, including an obligation on the provider to tell you about any subcontracting arrangements or changes to their business or licence status
• makes clear the provider must comply with all workplace laws

What are the red flags for licence fraud and phoenix activity?

Two risks the Labour Hire Authority specifically warns hosts about:

Licence fraud — where someone misrepresents themselves as a licensed provider. Warning signs include paper documentation you can't verify, provider information that doesn't match the Register, and bank account names that don't match the licensed provider or change frequently.

Illegal phoenix activity — where a company is deliberately wound up to avoid its debts, then a new entity continues the same work. Warning signs include quotes well below market value, directors previously linked to liquidated companies, requests to pay a new company or account, and changes to company names or directors while the same staff keep turning up.

What's your safety responsibility for labour hire workers?

Under workplace health and safety laws, a host is treated as the "employer" of a labour hire worker while that worker is supplied to and working in the host's business. That means you and the provider need to consult, cooperate and coordinate to meet your shared safety duties — sharing information, implementing joint safety arrangements, and closing any gaps between what each of you is responsible for. It's not enough to assume the provider has it covered, or that the provider assumes you do.

Building the habit

The easiest way to stay on top of this is to check every provider before you engage them, and again periodically — the Labour Hire Authority's "Follow My Providers" tool will notify you if a provider's licence status changes. If you want a second opinion on how well your site's labour hire and induction processes hold up against a WorkSafe visit, our team can book a site assessment and walk through it with you.

FAQ

What happens if I unknowingly use an unlicensed labour hire provider? You can still face penalties exceeding $660,000 for a corporation or $160,000 for an individual, along with disruption to your business if the Labour Hire Authority finds an unlicensed provider supplied your workers. This is why checking the licence register before engaging any provider matters, regardless of what you were told.

Am I responsible for a labour hire worker's safety, or is that the provider's job? Both. Under workplace health and safety laws, a host is treated as the employer of a labour hire worker while they're working in your business, and hosts and providers share responsibility for safety.

How often should I check a provider's licence status? Check before engaging any new provider, and periodically after that — licences can be suspended or cancelled during an engagement. The Labour Hire Authority's Follow My Providers tool can notify you of status changes automatically.

This article is general information for Victorian manufacturers, not legal advice. Last updated: 10 August 2026.