Labour hire providers in the ACT will need to apply for licences to operate as part of strict new measures designed to better protect workers.
A new labour hire licensing scheme, unveiled by the ACT government on Wednesday, will aim to crack down on dodgy providers.
The new scheme will force labour hire companies to meet a 'suitable person' test and demonstrate their compliance with industry standards and workplace laws.
A public register will also be set up for businesses and workers to know which labour hire services are compliant with the new scheme.
The scheme is expected to start some time in 2021.
Providers will have a six-month transition period to apply for a license from January next year.
ACT Employment Minister Suzanne Orr said the new scheme came in response to unacceptable practices carried out by providers in the industry.
"A labour hire licensing scheme will ensure the rights and conditions of labour hire workers in the ACT are upheld with new penalties to apply to providers who do the wrong thing," Ms Orr said.
"Recent inquiries across the country, including here in the ACT, have highlighted the vulnerability of labour hire workers due to poor treatment at work.
"The ACT's scheme will have broad and comprehensive coverage."
The ACT government first flagged the idea of the scheme in 2018 to ensure companies abided federal workplace laws.
At the time, Chief Minister Andrew Barr said the ACT would look to existing systems in Victoria, South Australia and Queensland to help develop the laws.