Licence loss, fines for companies hosting migrants in shoddy housing

Labour hire regulator clamps down on substandard accommodation for migrant workers In short: The Victorian Labour Hire Authority has tightened regulation of businesses that provide accommodation for their workers. Labour hire providers that do not comply with standards could lose their licence and face fines of more than $160,000. What's next? Migrant advocacy groups hope the rules can be applied in other states and territories. Labour hire companies that house migrant workers in substandard accommodation will risk losing their licence as part of a new crackdown. The Victorian Labour Hire Authority has launched new licence conditions after a series of cases in which migrant workers were housed in poor conditions. The authority, which works to prevent the exploitation of labour hire workers, brought in the conditions for businesses that provide housing for their workers. The conditions have been put in place for providers in industries such as horticulture and meat processing, which have high rates of worker exploitation. In addition to losing their licences, businesses that do not comply face fines of more than $160,000. The authority's director of intelligence, compliance and enforcement Erin Barlow said the changes were aimed at protecting vulnerable workers. "We know that when accommodation is tied to employment, workers can feel unable to complain because they can be fearful of losing both their job and their housing," she said. "These workers are especially vulnerable to exploitation." Ms Barlow said the new conditions were in response to substandard worker accommodation the authority had seen. In December 2025, the authority found 22 migrant workers were housed in unsanitary conditions in a single home and a granny flat in Gippsland. The accommodation in Warragul, about an hour east of Melbourne, had sewage pooling in the front yard and black mould covering doors, windows, ceilings and curtains. "In that case, we saw some of the worst accommodation that we had experienced," Ms Barlow said. "Providers can expect to see us out and about inspecting that accommodation more now that we are introducing these conditions. "Accommodation is a clear focus for the Labour Hire Authority in the next year." 'Not fit for an animal' Migrant Justice Institute co-executive director Bassina Farbenblum has welcomed the change. "We've seen for a long time that migrant workers are subjected to really appalling accommodation," she said. "It's terrific to see that the Victorian Labour Hire Authority is now ramping up. "The proof will be how well it is enforced. Hopefully we will see really strict enforcement." Ms Farbenblum said living in unhygienic and overcrowded accommodation was "incredibly demeaning". "We've heard from many migrant workers … the ability to sleep and function is diminished, there's issues with privacy and especially for women there are real safety issues. "I had one migrant worker describe [their accommodation] as 'not fit for an animal',"she said. "I'd hope that other states like New South Wales will follow and that we will start to see a real shift in the impunity of labour higher providers that don't provide habitable, decent accommodation to vulnerable migrants." Industry backs new conditions Victorian Farmers Federation horticulture president Michael Crisera said the change was a good step for the industry. "We're definitely supportive of improving conditions for our workers," he said. "Any industries with labour hire involved definitely need some more compliance." Mr Crisera said there needed to be education for labour hire providers about what the standards were, as well as education for workers. "Everybody needs to play a part in making sure that it's a win-win for the staff and also for the farmer," he said. Accommodation standards already existed but sat with other bodies, such as local councils and Consumer Affairs Victoria. The standards are now a part of some labour hire licence conditions, which allows the Labour Hire Authority to take action against businesses that do not comply. The conditions are being applied to new labour hire licences in the horticulture, meat and poultry processing, commercial cleaning, and security industries and will be rolled out to existing licence holders in those sectors in coming months.