The Victorian government is setting up an independent authority to clamp down on the use of undocumented and underpaid labour-hire workers across the state and has increased calls for a national labour hire scheme.
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Under laws to be introduced to Parliament on Wednesday, only a person who is "fit and proper" will be able to operate a labour hire firm, and only licensed labour hire firms will be able to get work.
A newly established body, the Labour Hire Licensing Authority, will oversee the licensing scheme.
It will have the power to fine those providing labour hire services without a licence or entering into an arrangement for labour hire with an unlicensed provider more than $126,000 per individual, or more than $500,000 per body corporate.
Punishment for assaulting, intimidating or threatening an inspector will range from two years' jail to $38,000 per individual and $190,000 for a body corporate.
The changes come after a series of investigative reports by Fairfax Media and Four Corners exposing the systemic exploitation of vulnerable workers by labour hire syndicates which are controlled by organised crime groups.
An inquiry into work arrangements in the labour hire industry and the extent of insecure work in Victoria found there were "legitimate and sound commercial reasons for Victorian businesses to utilise labour hire arrangements".
However, it concluded there were "ways in which labour hire workers are treated almost like a 'second class' of worker" and said a licensing scheme would "[make] it harder for unscrupulous operators to participate in the market".
The National Farmers Federation has previously said a crackdown could increase costs for farmers, while the author of the Victorian inquiry, Professor Anthony Forsyth, has warned that state schemes could push exploitation elsewhere.
