Victoria to introduce Labour Hire Licensing Scheme to protect workers

The Victorian government this week announced it will be introducing the state’s first ever Labour Hire Licensing Scheme, which will have ramifications for the horticulture industry and any farmers who rely on backpacker or seasonal Pacific labour.

The scheme – designed to protect workers and crack down on dodgy labour hire operators – will come into force on the 29th of April, with labour hire contractors given six months to sign up or else face stiff penalties. It is in response to a recent state-wide inquiry that found significant abuse and exploitation of workers across Victoria.

To implement the scheme, the government has established the Labour Hire Authority , which issue licences to labour hire operators, test for compliance, enforce the laws and educate operators and employers. Host employers that use unlicenced providers will face fines of up to $500,000.

“The Labour Hire Authority is looking forward to making sure that the rights of labour hire workers are protected, and to driving improved accountability and transparency across the labour hire industry,” says Labour Hire Authority Commissioner Steve Dargavel. “This is a strong scheme that will bring about much-needed regulatory reform in an industry where more protection is needed.”

The Victorian Farmers Federation has previously opposed the scheme, unsuccessfully lobbying to have the legislation defeated in the Victorian Upper House. The VFF has argued that the legislation will only complicate the existing agricultural labour market and impose significant costs on growers without providing necessary protections for vulnerable workers.

For more information on the scheme, visit the Labour Hire Authority website by clicking here.