Victoria’s labour hire laws are changing throughout 2026, creating new compliance, governance and operational requirements for labour hire providers and host employers across the state.

These changes are part of amendments to the Labour Hire Licensing Act 2018 (Vic) and are introduced through the Labour Hire Legislation Amendment (Licensing) Bill 2025. The Labour Hire Authority (LHA) has stated that the changes are being implemented in stages during 2026 to make Victoria’s labour hire licencing schemes stronger and broader.

Why Are Victoria’s Labour Hire Laws Changing?

The reforms are designed to strengthen the Labour Hire Authority’s ability to identify and address unlawful conduct within the industry while improving accountability across workforce arrangements.

It also supports a more transparent and professional industry by helping ensure providers operate to consistent standards that protect both workers and legitimate businesses.

What Has Already Changed?

The first stage of reforms came into effect on 24 December 2025, expanding the Labour Hire Authority’s investigative powers and assessment criteria.

The changes also increase transparency around licensing decisions and enable greater information sharing between government agencies where it is in the public interest.

The reforms are intended to improve oversight of the labour hire industry and help providers and host employers better understand their legal obligations under the scheme.

Changes from June 2026

From 1 June 2026, new labour hire licensing requirements apply to all licence holders and applicants, regardless of when a licence application was submitted or granted.

These include:

  1. A Stronger Fit and Proper Person Test

A more rigorous “fit and proper person test” will apply to people involved in running a labour hire company, including nominated officers and relevant persons.

The Labour Hire Authority will be able to consider factors such as a person’s character, integrity and professionalism, and whether they are influenced by someone who is not fit and proper.

For providers, this means reviewing who controls or influences the business.

For hosts, it reinforces the importance of choosing reputable and properly licensed labour hire providers.

  1. Broader Compliance Considerations

The Labour Hire Authority will have greater scope to assess a provider’s compliance history when making licensing decisions. This may include previous, current and ongoing compliance with labour hire and relevant laws, meaning providers will need to show that compliance is managed across the entire business.

  1. Financial Viability Requirements

From 1 June 2026, labour hire businesses applying for or renewing a licence will need to declare that they are financially viable. The Labour Hire Authority must also be satisfied that the business has the financial capacity to meet its obligations.

This is an important change because financial stability can affect a provider’s ability to fulfil their obligations to hosts and employees.

The Authority may place greater scrutiny on businesses with significant financial stress, insolvency concerns or governance issues. Providers should ensure financial records are current and capable of supporting any declarations made during licence applications or renewals.

What Does This Mean for Labour Hire Providers?

These changes require providers to take a more structured and proactive approach to governance, compliance, risk management and internal processes.

The Labour Hire Authority has advised licence holders to familiarise themselves with the changes, assess any impacts on their business and relevant persons, and seek independent advice as needed. It also states that licence holders must notify the Authority within 30 days if any relevant person ceases to be fit and proper.

As an established workforce solutions provider, Frontline Human Resources is committed to workforce integrity and maintaining a strong operational framework that supports high compliance standards.

What Does This Mean for Host Employers?

While many of the new requirements apply directly to labour hire providers, due diligence will become increasingly important for host employers.

This means the workplace is worth checking any arrangement where workers are being supplied into your business, particularly if there are multiple entities, subcontracting arrangements or supply chain layers involved.

Host employers should continue to verify that labour hire providers hold a valid Victorian labour hire licence and maintain appropriate due diligence processes. Engaging an unlicensed provider may expose businesses to regulatory risk, penalties and reputational damage.

Further Changes Anticipated

Potential Expansion of What Constitutes Labour Hire in Victoria

 The Victorian Government has indicated that later reforms will clarify and broaden the definition of labour hire services.

These changes may capture contractor management, workforce supply chain and intermediary arrangements that have historically operated outside the labour hire licensing framework.

Businesses that engage workers through multiple entities, subcontractors, labour brokers or managed service arrangements should review their operating model and seek advice if there is any uncertainty about licensing obligations.

Other Labour Hire Law Changes Expected Later in 2026

 The Labour Hire Authority has stated that final changes to the Act will be implemented in the latter half of 2026 to clarify the definition of labour hire services. These changes are expected to better cover supply chain arrangements and define certain construction activities as labour hire within the Regulations.

If your business engages workers through contractors, subcontractors and related parties, it may be worth reviewing whether any part of the arrangement could be affected by future changes.

How Can Hosts and Providers Stay a Step Ahead?

As Labour Hire Authority continues to roll out changes in 2026, businesses that engage labour hire workers in Victoria should stay informed, verify provider licence status and ensure their workforce arrangements are supported by clear, compliant processes.

Businesses can begin preparing now by:

  • Reviewing labour hire licencing and arrangements.
  • Confirming provider licensing status.
  • Reviewing contractor and subcontractor arrangements.
  • Monitoring future guidance from the Labour Hire Authority regarding the expanded definition of labour hire services.

Frontline Human Resources is committed to compliance as Victoria’s labour hire laws continue to evolve. Our team is here to discuss reliable workforce solutions backed by clear communication, strong internal processes and a commitment to doing things the right way.

Note: This article provides general information only and should not be relied on as legal advice. Businesses should check the Labour Hire Authority’s official website and seek professional advice for their specific.

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