Cleaning and hygiene businesses that rely on labour hire arrangements are facing significant new compliance obligations, with the Victorian Government set to strengthen its labour hire licensing framework from 1 June 2026.
The changes, introduced through the Labour Hire Legislation Amendment (Licensing) Bill 2025 and administered by the Labour Hire Authority (LHA), affect all licensed labour hire businesses and the people who run them. Given the cleaning industry’s long-standing reliance on flexible, contract-based workforces – particularly in commercial, healthcare and facilities management settings – the changes carry real weight for operators across the sector.
A stronger fit and proper person test
Central to the reforms is a more rigorous ‘fit and proper person’ test, which applies to nominated officers and relevant persons involved in running a labour hire company. The LHA will now be able to consider broader factors when assessing suitability, including whether a person is under the control or influence of someone who fails the test, as well as an individual’s character, honesty, integrity and professionalism.
Cleaning businesses must notify the LHA within 30 days if any relevant person ceases to be fit and proper – with failure to do so potentially resulting in licence cancellation.
Compliance history and financial viability now in scope
Two further changes expand the criteria the LHA can draw on when making licensing decisions. Compliance history across a wider range of laws – including consumer protection, fair trading, corporate regulation and bankruptcy legislation – will now be considered alongside existing workplace and labour hire laws.
Separately, all labour hire businesses seeking to apply for or renew a licence must declare financial viability, with the LHA required to be satisfied on this point before granting approval. For cleaning companies operating on tight margins, this declaration carries practical significance.
What operators should do now
Industry operators are urged to familiarise themselves with the legislative changes, assess any impacts on their businesses and relevant persons, and seek independent professional advice where required.
Licence holders with renewals or annual reports due in June or July can expect direct correspondence from the LHA in mid-May. Notably, the Labour Hire Licensing Online (LHLO) portal will be taken offline for annual reporting and renewals from 4pm Friday 29 May through to Sunday 31 May – submissions underway before that date must be finalised by the deadline or they will be deleted.
Full details available at the Labour Hire Authority website’s Labour Hire Law Changes 2026 page.
