So, you’re in the business of providing workers to other companies. You’ve probably heard the term “labour hire licence” floating around lately, but maybe you’re thinking, Do I really need one?
Here’s the thing: if you’re operating in Victoria, you absolutely need a licence. But it’s not just about ticking a box. There are serious reasons behind it, and ignoring it could lead to big problems down the road.
What Is a Labour Hire Licence?
In simple terms, a labour hire licence is a legal requirement for businesses that provide temporary workers to other companies. Think of it as a “badge of legitimacy” for agencies that hire out workers. Without it, your business might be in trouble.
But it’s not just about following the law. The licence is there to protect the workers – the temps, contractors, and casual employees – from exploitation. It’s designed to make sure they’re not being underpaid, overworked, or taken advantage of by dodgy operators.
Are You a “Host”? (What Does That Even Mean?)
If you’re running a business and using a labour hire company to provide workers, then you’re a “host.” The term might sound a bit strange, but it basically just means that your company is hiring workers from another business, like a staffing agency. If you’re using temps or contractors from a labour hire agency, you have some serious responsibilities.
One of the most important things you need to do is check that your labour hire provider is licensed. If they aren’t, you could be facing some serious penalties – we’re talking fines that could hit $500,000 or more. It’s not exactly the kind of surprise you want in your inbox.
What If You Don’t Have a Licence?
If you’re in the business of hiring labour, whether as a provider or a host, you need that licence. Without it, you’re not just putting yourself at risk for a fine; you’re also opening the door to shady practices that could damage your reputation.
This is where the Victorian Labour Hire Licensing Scheme, introduced on 29 April 2019, comes in. It’s a comprehensive framework designed to regulate the labour hire industry and protect workers from exploitation. Here’s what you need to know about the scheme:
Who’s Covered?
Anyone supplying labour to another person or organisation is covered under the scheme.
Application Process:
You’ll need to lodge your application via the Labour Hire Licensing Online (LHLO) portal. The process is detailed and requires:
- Worker visa information
- The number of workers provided in the last 12 months (or expected for the next 12 months)
- Compliance with laws around tax, superannuation, workplace safety, and migration
- Information about any transport or accommodation services provided to workers
- The industries you supply workers to
Costs:
There’s an application fee based on your turnover, and you’ll need to renew the licence annually.
Fit and Proper Person Test:
Applicants must pass this test to ensure they meet the high standards set by the scheme.
The transition period for the scheme ended on 30 October 2019, meaning that since then, no one can legally operate as a labour hire provider in Victoria without holding this licence—or at least having applied and not been refused.
For hosts, it’s equally important. Hiring from an unlicensed provider not only puts your workers at risk but also exposes your business to fines and potential reputational damage.
But What About You, the Worker?
As a temp, contractor, or casual worker, the labour hire licence isn’t just a piece of paperwork – it’s your protection. It means that the agency placing you in jobs is following the law and treating you fairly. Without that licence, you could be stuck working in unsafe conditions, not getting paid on time, or even underpaid for your skills.
Think about it: you’re working hard, doing the job, but if the agency isn’t licensed, your rights might not be protected. That’s a situation no one wants to be in.
Why Does It Matter to You?
At the end of the day, whether you’re a business owner or a worker, the labour hire licence matters. It ensures that everything is running smoothly, fairly, and legally. As an employer, it protects you from liability. As a worker, it ensures you’re not being exploited.
Think of it as the foundation of a trustworthy, professional work environment. Without it, you’re walking a very thin line between a smooth, stress-free experience and one full of legal battles, unpaid wages, and lost trust.
So, What Should You Do Now?
It’s simple: Check the licence. If you’re an employer, check that the agency you’re using is licensed and keep track of it. If you’re a temp worker, make sure the agency you’re with is compliant. It only takes a few minutes to check, and it can save you hours (or even years) of headaches.
Don’t wait until something goes wrong. Be proactive and make sure your work life – or your business – is on the right side of the law. The last thing you want is to be stuck paying a fine or dealing with unpaid wages when it could have been avoided.
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