Victoria’s Labour Hire Authority (LHA) is tightening its grip on the state’s meat and poultry processing sector, launching a fresh wave of inspections to tackle unlicensed and non-compliant labour hire practices. For recruitment agencies and host employers, the message is clear: compliance isn’t optional -it’s fundamental.
Regulator Finds Widespread Non-Compliance
In May 2025, LHA compliance officers visited three south-west Victorian processing facilities. These unannounced inspections uncovered serious breaches, including:
- Unlicensed labour hire operations – Providers were supplying workers without holding a valid labour hire licence, a direct breach of the Labour Hire Licensing Act 2018 (Vic).
- License holders breaking the rules – LHA found examples of licensed providers failing to meet obligations around PPE provision, wage payments, superannuation, and meal/rest break entitlements under the Meat Industry Award 2020.
The consequences for operating without a licence are steep: corporations can face fines of up to $630,000, while individuals risk penalties of up to $150,000.
Recurring Sector Risks and Exploitation Patterns
The inspection findings reflect broader systemic issues plaguing the meat and poultry processing industry. According to the LHA, recurring problems include:
- Underpayment of wages, particularly through piece-rate arrangements;
- Unlawful wage deductions, including fees for equipment or housing;
- Substandard accommodation provided to workers;
- Exploitation of Pacific Australia Labour Mobility (PALM) scheme participants.
These issues often impact vulnerable migrant workers who may lack the means to speak out, making compliance a matter of both legal and ethical responsibility.
What Recruiters and Host Employers Must Do
This spotlight on non-compliance is not just a problem for rogue operators. It’s a warning to all parties involved in contingent workforce supply chains. Recruitment agencies and hosts alike need to:
- Ensure licence validity – Always confirm that any labour hire provider you engage is licensed via the LHA’s online register.
- Audit your supply chain – Routinely assess compliance, including reviewing payslips, employment contracts, superannuation contributions, and workplace conditions.
- Strengthen internal processes – From onboarding to payroll, your internal systems must be watertight to avoid liability or reputational damage.
LHA Offers Help – So Use It
The LHA isn’t just about penalties — it offers support too. Hosts and providers can access:
- Licence check tools to verify providers;
- Free webinars and resources to better understand compliance obligations;
- Industry-specific guidance to close gaps in your processes.
For recruiters working with food manufacturing and processing businesses, staying on top of these obligations is a non-negotiable. Compliance isn’t just the regulator’s responsibility -it’s yours too.
Sources
- Staffing Industry Analysts. (2025). Australian regulator probes meat sector over unlicensed labor providers. Retrieved from: https://www.staffingindustry.com/editorial/cws-30-contingent-workforce-strategies/australian-regulator-probes-meat-sector-over-unlicensed-labor-providers
- Labour Hire Licensing Authority (Victoria). (2025). Recent Compliance Activity Updates. Retrieved from: https://labourhireauthority.vic.gov.au
- RMIT Business and Human Rights Centre. (2024). The exploitation of PALM scheme workers in Australia’s meat industry. Retrieved from: https://www.rmit.edu.au/news/bhright/exploitation-of-palm-scheme-workers-in-aus-meat-industry
- Fair Work Ombudsman. (2025). Meat Industry Award 2020. Retrieved from: https://www.fairwork.gov.au/employment-conditions/awards
