EOR and Labour Hire Licensing in Australia: What Clients Need to Check

Australia's state labour hire schemes are aimed at businesses that supply workers to someone else and pay them. That describes the basic EOR model: the provider is the legal employer and pays the worker, and the worker does the work for your business.

Queensland describes labour hire providers as businesses that supply workers to another business or person to do work, while being obliged to pay them, and says the definition is broad.

Victoria's Labour Hire Licensing Act 2018 (section 7) covers a business with an arrangement that is wholly or principally for the supply of labour, where it is obliged to pay the worker, directly or through intermediaries.

If you're unsure whether the scheme applies, the Queensland regulator suggests contacting it or getting legal advice.

• Every labour hire provider operating in Queensland must be licensed under the Labour Hire Licensing Act 2017, and users may only use a licensed provider.
• Recruitment and permanent placement services aren't labour hire.
• High-income exemption. Supplying only employees who earn more than A$190,100 a year (from 1 July 2026) and aren't covered by an award or agreement doesn't need a licence. Many senior professional EOR hires could fall within it.
• Other exemptions cover supply within a corporate group, secondments of in-house employees, and supplying a lone executive officer.

• Labour hire providers must hold a licence, comply with specified laws and standards, and be run by appropriate people. The Labour Hire Authority oversees the scheme in all industries.
• Stronger rules from 1 June 2026: a tougher 'fit and proper person' test for anyone who controls the business, a broader look at the business's compliance history, and a financial viability declaration.
• Penalties: maximum penalties exceed A$660,000 per breach for a company and A$160,000 for an individual.
• Workers supplied can be employees or independent contractors. The guidance doesn't describe a high-income exemption like Queensland's.

South Australia and the ACT also run labour hire licensing schemes. We haven't yet checked their rules against official sources, so check the regulator's guidance for the state or territory where your employee will work.

• Do you hold a labour hire licence in the state where my employee will work? What's the licence number?
• If you say no licence is needed, why? For example, does Queensland's high-income exemption apply to this role?
• Is the employee covered by an award or enterprise agreement?
• Do you employ through your own Australian entity or a partner? If a partner, is the partner licensed?
• How will you tell me if your licence status changes?