At a glance
- The New South Wales (NSW) Minns Labour Government has committed to introducing a mandatory labour hire licensing scheme if re-elected in 2027.
- The proposed scheme would require all labour hire providers in NSW to hold a licence, with host employers required to only engage licensed providers.
NSW Industrial Relations Minister, Sophie Cotsis, has announced that, if re-elected at the 2027 NSW State Election, the NSW Labour Government intends to introduce a bill within the first 100 days of its new term to establish a labour hire licensing scheme in NSW.
The commitment follows concerns about the exploitation and underpayment of labour hire workers across a range of industries in NSW.
NSW does not currently have a labour hire licensing scheme in place. The proposed reforms would bring NSW into line with Victoria, Queensland, the Australian Capital Territory and South Australia, which each operate their own labour hire licensing regimes.
Under the proposed NSW scheme, labour hire providers operating across all industries would be required to hold a licence, and host employers would be required to only engage licensed labour hire providers.
What does this mean for employers?
While the proposed scheme is contingent on the Minns Labour Government being re-elected and the legislation being passed, businesses that engage labour hire workers in NSW should monitor developments and consider the potential implications for their existing labour hire arrangements.
Please reach out to our team if you have any questions regarding the proposed reforms or their potential impact on your business.
Further updates will be provided following the NSW State Election on 13 March 2027.
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