Minns Labor Government Pledges Labour Hire Licensing Scheme if Re-Elected

The NSW Minns Labor Government announced it will introduce legislation to regulate the labour hire industry within the first 100 days if re-elected, establishing a mandatory licensing scheme across both public and private sector supply chains.

The policy announcement follows an independent probity investigation, known as the Kimber Report, into the Western Sydney Airport Metro project. According to the government, the investigation prompted the termination of a major contractor after uncovering evidence of suspected worker underpayment, insurance fraud, tax fraud, and more than $10 million in unaccounted invoices. The report detailed instances where multiple labour supply firms were registered at the identical residential address under the same director within days of each other and conducted business using encrypted messaging platforms.

Concerns regarding labour hire practices have also been voiced by agricultural groups, unions, businesses, and the Modern Slavery Committee across various sectors, including horticulture.

Under the proposed scheme, all labour hire providers operating in New South Wales across all industries would be required to hold a licence consistent with national principles. Host employers would be legally restricted to using only licensed providers, supported by business education initiatives and penalties for non-compliance.

The planned licensing framework builds on existing state measures, which include information-sharing arrangements between SafeWork NSW and federal authorities such as the Australian Taxation Office, Australian Border Force, and the Australian Federal Police. Other ongoing actions include mandatory compliance with the Labour Hire Code of Practice, a Supply Chain Compliance Program, the establishment of the NSW Migrant Workers' Centre, and joint initiatives with the Anti-slavery Commissioner.

Minister for Workplace Health and Safety Sophie Cotsis stated that the scheme is an essential measure to prevent worker exploitation and ensure workplace safety and entitlements. Industry and union representatives, including Unions NSW and the Australian Fresh Produce Alliance, expressed support for the reform, highlighting the need to protect worker conditions and ensure supply chain integrity across the state.

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