Labour Hire Licence Victoria for Host Employers

In Victoria the business that uses labour hire workers carries a legal duty of its own. Under the Labour Hire Licensing Act 2018 (Vic), a host must only engage labour hire providers that hold a current licence from the Labour Hire Authority (LHA). The LHA states that penalties for engaging an unlicensed provider exceed $660,000 for a corporation and $160,000 for an individual. The host does not need a licence itself, but it is the host that has to check.

This article is written for site managers, operations managers and procurement teams at civil contractors, manufacturers and distribution centres who bring in labour hire crews. It covers what the obligation actually is, what changed in 2026, what a licence does and does not tell you, and what to put in the contract. The practical vetting steps, from the register search through to ticket checks, are covered in a separate guide on how to check a labour hire provider.

The obligation

What the law asks of a host

The duty sits with the business using the workers, not only the business supplying them.

Only use licensed providers

The core rule is simple. A host must not enter into an arrangement for labour hire services with a provider that is not licensed. The check is made on the LHA's public Labour Hire Licence Register, not on a certificate the provider hands over.

Check the register, not the paperwork

The LHA tells hosts not to rely on paper documentation because it can be fake or out of date. A licence can be suspended or cancelled after a certificate is printed, so the register is the only record that counts.

Penalties apply to the host

According to the Labour Hire Authority host guidance, the penalty for engaging an unlicensed provider exceeds $660,000 for a corporation and $160,000 for an individual. Some older articles still quote lower figures, which no longer reflect the Authority's own page.

Wider exposure than the licence alone

The LHA notes that hosts can also be liable for a provider's breaches of workplace and migration law, and that hosts share responsibility for workplace safety. Using an unlicensed or poorly run provider can draw the host into problems well beyond the licensing offence.

Two site workers in hard hats checking a clipboard and speaking on a two way radio

2026 changes

What changed this year

The scheme was tightened in stages through 2026. These are the changes that matter to hosts.

Tougher fit and proper test

People running a labour hire business now face a more rigorous fit and proper person test before a licence is granted or kept

Financial viability

Applicants must declare financial viability, and the Authority must be satisfied it is met

Supply chains, 1 October 2026

Any arrangement with the character of labour supply needs a licence, including bare intermediaries that on supply workers employed by someone else

Construction roles

The LHA has announced that traffic management, concreting, crane operating and site security on government funded projects over $50 million will come into the scheme from 29 October 2026

Limits

What a licence tells you, and what it does not

A licence tells you the people running the provider have passed the LHA's fit and proper person test and that the business has declared it complies with workplace, safety, superannuation, tax and migration laws.
A licence tells you the LHA can suspend or cancel that provider if it breaks the rules, and that its status is public and current on the register.
A licence does not tell you whether the workers sent to your gate hold the tickets your site needs. Construction induction cards, High Risk Work licences and plant competencies still have to be checked worker by worker.
A licence does not cover anyone else in the chain. If your provider passes the request on to another business, that business also needs a licence, which is the point of the 1 October 2026 change.
A licence check is a snapshot. Status can change after the day you look, so the LHA offers a Follow My Providers service that alerts you when a provider's licence status changes.

Treat the licence as the entry ticket, not the whole assessment. It removes the providers you legally cannot use. It does not choose a good one for you.

Contract

Putting the obligation into the contract

The LHA recommends a written contract with every provider. For a civil contractor, a manufacturer or a distribution centre, the clauses that do the most work are short and specific. The contract should name the licensed entity exactly as it appears on the register, with its licence number and ABN. It should require the provider to keep its licence current and to tell you straight away if the licence is suspended, cancelled or changed, or if any part of the supply is subcontracted to another business.

It should also set out that workers will be paid their lawful wages and entitlements, that superannuation and WorkCover are the provider's responsibility for the workers it employs, and how both parties will consult and coordinate on safety at your site. The host still controls the workplace, so site induction, supervision and hazard management stay with you even when the workers are not on your payroll.

Keep a record of each check: the date, the register entry and the licence expiry. If a provider's status ever changes mid project, that record shows the arrangement was legitimate when it started and that you acted when it changed.

Bluestone Labour Group holds Victorian Labour Hire Licence VICLHL11535, granted by the Labour Hire Authority under the Labour Hire Licensing Act 2018 (Vic). Our ABN is 59 697 186 520. We expect every host to look us up on the register rather than take our word for it. See civil labourer hire, warehouse staff hire and production worker hire for the crews we supply.

Questions

Frequently asked questions

No, not for using labour hire workers. The licence is held by the provider. A business that also supplies workers to other businesses, including on supply through a chain of companies, will generally need a licence of its own, and the 1 October 2026 change makes that clearer.

The Labour Hire Authority states that penalties exceed $660,000 for a corporation and $160,000 for an individual. Check the Authority's host page for the current figures, as the Act has been amended during 2026.

Check before the first engagement and keep a dated record. After that, subscribe to the LHA's Follow My Providers service so you are told when the provider's licence status changes, and recheck at contract renewal or at the start of each new project.

The obligation is to use licensed providers, so new shifts should not be booked with a provider whose licence is no longer active. Check the register entry, contact the Labour Hire Authority for guidance, and arrange a licensed replacement for the remaining work.

See all labour hire services

What a Victorian Labour Hire Licence Means for You as a Host Employer