Labour hire firms play an important role in Australia’s economy, but weak regulation has allowed unlawful operators to exploit workers, undercut legitimate businesses and evade workplace laws. While several states have introduced labour hire licensing schemes to address these issues, New South Wales (NSW) remains a notable exception. 

This report examines the risks posed by this regulatory gap and makes the case for the NSW Government to establish a standalone labour hire licensing scheme.

Labour hire operators are firms that supply labour to other firms, often in short-term arrangements such as seasonal work. These firms, which specialise in sourcing and allocating labour on behalf of 'host' employers, can play a legitimate role in the economy. However, loopholes and poor regulation have allowed nefarious, and often illegal, operators to emerge in the sector.

This widely accepted reality has prompted new tranches of regulation across the country. However, efforts to establish a nationally consistent scheme have not materialised. In the interim, several jurisdictions have introduced schemes of their own.