The Labour Hire Authority (LHA) is among the many exhibitors at Converge, the only Australian-owned major event showcasing the latest tools and technology in the municipal works, civil and commercial construction space.
From September 17–18, leading decision-makers from these sectors will come together at the Melbourne Convention and Exhibition Centre to see the latest developments that will help to build Australia’s future infrastructure.
It is at this event where delegates and attendees can find out more about their labour hire obligations in Victoria.
The LHA will be present to explain how it protects Victorian workers from exploitation, and improves transparency and integrity in the labour hire industry by regulating businesses that provide or use labour hire services.
LHA was established to implement the Labour Hire Licensing Act 2018 (Vic), with Steve Dargavel serving as the Labour Hire Licensing Commissioner.
The LHA said that providing safe and fair conditions for labour hire workers in construction is the responsibility of both the companies that supply the workers and the companies using their services.
Victoria’s labour hire licensing scheme, which covers most businesses that provide workers to perform work at another company, is in place to protect workers, businesses and the wider construction sector.
Under the Act, businesses that supply workers other than a director to undertake construction activities generally require a labour hire licence.
Labour hire has been a significant feature of the construction sector for decades, and labour hire workers in the industry perform a variety of roles, including traffic management, rail work, crane operation, trades, formwork, and labouring work.
Maximum penalties exceeding $650,000 for companies and $160,000 for individuals apply for providing or engaging unlicensed labour hire services, under the Act.
Steve said the same maximum penalties apply whether businesses engage another company to provide unlicensed labour hire services or actually provide those services.
“This helps to support a level playing field and contributes to a fairer industry that treats workers properly,” he said.
Victoria’s licensing scheme was introduced in 2018 to protect vulnerable workers and improve the integrity of the industry, following a number of inquiries highlighting unlawful practices and exploitation.
The Victorian scheme followed the introduction of a labour hire licensing scheme in Queensland. Schemes are also in place in South Australia and the ACT. Businesses should ensure they are aware of their legal obligations regarding labour hire in their local jurisdictions.
Compliance and enforcement
LHA has taken a range of actions against labour hire companies in Victoria’s construction industry to date, including in response to practices that may be unlawful, coercive or systemic.
These actions include decisions that removed organised crime and outlaw motorcycle gang figures from the industry.
The focus on the construction industry saw the record highest total penalty for breaches of labour hire law in Australia issued by the Supreme Court of Victoria in September 2024.
A total of $759,674 in penalties were issued to five companies and three company directors for their involvement in unlicensed labour hire operations. The penalties were issued to the companies and individuals reflecting unlawful conduct across multiple layers of subcontracting.
How businesses can contribute
All businesses operating in Victoria should only use licensed labour hire providers and take active steps to ensure that workers on their premises are being treated lawfully.
“It’s important for businesses to know who is working at their facility, and to take active steps to ensure workers are being treated lawfully,” Steve said.
LHA said the Converge Expo provides a valuable platform for employers to update their knowledge to clearly understand the regulations and their obligations under the Act.
It urges all people who provide or engage labour hire services to visit its stand.
Register for Converge now
Register today and secure your place alongside experts, decision makers and trailblazers transforming the infrastructure landscape.
Hear from the organisations delivering some of Australia’s most ambitious infrastructure, transport and construction projects, including:
- Inland Rail
- Suburban Rail Loop Authority
- McConnell Dowell
- UGL
- Viva Energy
- Suburban Connect
- Urban Core
- NexGen
- Procore
Across two full days, you’ll hear from more than 50 expert speakers sharing insights, strategies, and solutions.
You’ll gain a firsthand look at what’s next for civil, municipal, and commercial infrastructure.
Plus, you’ll have the opportunity to connect with the leaders and organisations driving Australia’s major project pipeline forward.
Register to attend here.