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Labour Hire Company
Question 3 of 6 · the host corner and the licence side

Can a business use an unlicensed labour hire provider?

This corner belongs to the host business: in each licensing jurisdiction the host must use a licensed provider, and the penalties for using one that is not licensed differ scheme by scheme.

General information about the duties on a host business that uses labour hire, not legal advice on your own contract.

the contract, and the licence Eight jurisdiction tabs along the licence side: QLD, VIC, SA, ACT, NSW, WA, TAS, NT. A solid tab is a jurisdiction with a licensing scheme; an open tab is one where the source named on it recorded none, at the date that source gives.QLD: labour hire providers must be licensed; the Act commenced on 16 April 2018 (Labour Hire Licensing Queensland).QLDVIC: a labour hire provider must hold a licence, and a host may engage only a licensed provider; the scheme began on 29 April 2019 (Labour Hire Authority).VICSA: licensing extended to all industries from 29 January 2026, with a grace period to 29 July 2026 for newly added industries (Consumer and Business Services).SAACT: the licensing scheme began on 27 May 2021 (WorkSafe ACT).ACTNSW: no licensing scheme in New South Wales (nsw.gov.au).NSWWA: no specific labour hire regulation, as at March 2023 (Commonwealth department consultation paper).WATAS: no specific labour hire regulation, as at March 2023 (Commonwealth department consultation paper).TASNT: no specific labour hire regulation, as at March 2023 (Commonwealth department consultation paper).NT Three schemes with the day each began, and the day South Australia’s was extended to all industries; then the four jurisdictions with none recorded.Licensed: QLD 16 April 2018 · VIC 29 April 2019SA all industries from 29 January 2026ACT 27 May 2021No licensing scheme: NSWAs at March 2023, no specificlabour hire regulation: WA, TAS, NT employment and pay the workplace and its safety same job, same pay,when an order applies the host’s own employee the labour hire company the host business the worker
  1. Question 1: Who employs a labour hire worker, and who pays them?
  2. Question 2: Does a labour hire company need a licence?
  3. Question 3: Can a business use an unlicensed labour hire provider?
  4. Question 4: How do I check a labour hire company’s licence?
  5. Question 5: Who is responsible for a labour hire worker’s safety?
  6. Question 6: What is a “same job, same pay” order?

The four dates on the tabs come from each jurisdiction’s own licensing regulator; NSW’s answer is from nsw.gov.au, and the WA, TAS and NT position is the Commonwealth department’s, as at March 2023.

Eight jurisdiction tabs in two rows: QLD, VIC, SA, ACT, NSW, WA, TAS, NT. A solid tab is a jurisdiction with a licensing scheme; an open tab is one where the source named on it recorded none, at the date that source gives.QLD: labour hire providers must be licensed; the Act commenced on 16 April 2018 (Labour Hire Licensing Queensland).QLDVIC: a labour hire provider must hold a licence, and a host may engage only a licensed provider; the scheme began on 29 April 2019 (Labour Hire Authority).VICSA: licensing extended to all industries from 29 January 2026, with a grace period to 29 July 2026 for newly added industries (Consumer and Business Services).SAACT: the licensing scheme began on 27 May 2021 (WorkSafe ACT).ACTNSW: no licensing scheme in New South Wales (nsw.gov.au).NSWWA: no specific labour hire regulation, as at March 2023 (Commonwealth department consultation paper).WATAS: no specific labour hire regulation, as at March 2023 (Commonwealth department consultation paper).TASNT: no specific labour hire regulation, as at March 2023 (Commonwealth department consultation paper).NT 1 2 3 4 the host’s ownemployee the labour hire company the host business the worker Three schemes with the day each began, and the day South Australia’s was extended to all industries; then the four jurisdictions with none recorded.Licensed: QLD 16 April 2018 · VIC 29 April 2019SA all industries from 29 January 2026ACT 27 May 2021No licensing scheme: NSWAs at March 2023, no specificlabour hire regulation: WA, TAS, NT A key to the four numbers on the drawing: 1 pay, 2 safety, 3 licence, 4 same pay.1pay2safety3licence4same pay

The dashed line beside the worker is the same pay line: when an order applies, the pay must be at least the rate the host’s workplace instrument gives its own employees.

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The host corner, and the side it stands on

Queensland: “users of labour hire must only use licensed labour hire providers”, and a provider who has only applied is not enough; the licence must be current.

Victoria: hosts must only use licensed providers.

South Australia: “Host businesses must ensure the provider is licensed or risk penalties for using unlicensed providers.”

ACT: a host that hires labour hire workers may only use a licensed provider, and host organisations themselves do not need a licence.

What using an unlicensed provider anyway brings: Queensland’s page says it is an offence to use an unlicensed labour hire provider, and a provider whose application has been refused is not one a host can keep using.

Victoria’s page warns of substantial penalties for engaging an unlicensed provider.

South Australia: “If you use a labour hire provider who isn’t licensed after 29 July 2026, you risk significant penalties.”

The ACT’s FAQ says financial penalties may apply to hosts who engage unlicensed providers.

Queensland’s page puts a question to any business with workers it does not directly employ: consider whether the arrangement is labour hire.

The penalties compared, each with its year

Each scheme’s own page, read side by side, with the date that page puts on its figures.

The penalties, scheme by scheme
JurisdictionWhat the page statesThe year stated
QLDFor providing labour hire services without a licence, the page gives a maximum of $518,100 (3,000 penalty units) for a corporation and, for an individual, $178,571.80 (1,034 penalty units) or three years in prison. Using an unlicensed provider is an offence it also lists. Penalty unit value from 1 July 2026.
VICUnlicensed labour hire services: $167,280 for an individual and $669,120 for a corporation, for providing labour hire services without a licence or engaging an unlicensed provider. 2026-27 Financial Year
SAMaximum penalty: $140,000 for an individual and $400,000 for a body corporate; the same maximum penalties are stated for a host entering into an agreement with an unlicensed provider. No year given on the page.
ACTFor a provider that supplies labour hire services without a licence after 27 November 2021, the FAQs put the maximum at $128,000 for an individual and $2,430,000 for a corporation. For a host that engages an unlicensed provider, they say financial penalties may apply. The FAQs date from August 2021.

Victoria’s figures are those the Labour Hire Authority gives for the 2026-27 financial year.

The ACT’s figures come from a WorkSafe ACT FAQ of August 2021, and a WorkSafe ACT release said compliance and enforcement action was due to begin on 27 November 2021.

The check the host can keep

Before engaging a provider, the register is the check: Victoria’s Authority says to check the licence of any current providers on its register, and not to rely on paper documentation, which can be illegitimate or out of date.

Labour Hire Licensing Queensland puts its own suggestion under “You can help tackle unlicensed activity and exploitation of workers by”:

  • “using the labour hire register to check if your labour hire provider has a current licence”.

Consumer and Business Services lists what a host can do, under “You can help limit unlicensed activity and exploitation of workers by”:

  • checking the labour hire provider register, maintaining a list of all workers on your site, and understanding your responsibilities to labour hire workers.
  • checking contract prices to make sure labour costs can be covered under Awards and Agreements, setting clear expectations that you expect the labour hire provider to act within workplace laws, and understanding subcontracting arrangements that may take place.

Where workers come through an agent or intermediary, South Australia’s page says a host can expect the provider’s details and licence number from them.

South Australia’s duties go past the licence check: a host must not enter into an avoidance arrangement, and inspectors can enter a host’s site to check a provider’s compliance.

What this corner does not reach

The licensing side does not answer who employs the worker, who carries the safety duty, or what a same pay order sets; those are the other sides of the triangle.

The duties are stated for Queensland, Victoria, South Australia and the ACT.

NSW’s own page says there is currently no licensing scheme there. As at March 2023, the Commonwealth department recorded no specific labour hire regulation in WA, TAS or NT.

Where the official words are

The host’s duties and penalties come from the four licensing regulators’ own pages, and the Queensland and South Australian register suggestions are those regulators’ words to hosts. All were read on 13 October 2026.

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Dotto runs this form, not the business this site is about. Once we’ve checked your request, we pass it to this site’s owner or to a business that provides this service. Please leave out health or financial details. How we handle your details, including access and complaints: lead terms · privacy policy

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