New laws to require labour hire companies to have a licence before they can employ people in Canberra will come into effect on Thursday.

But there will be a transition period for companies to apply for and receive their licences, as enforcement will not start until November.

ACT work health and safety commissioner Jacqueline Agius will also take on the role of the territory's labour hire licence commissioner, with the scheme to be administered by WorkSafe ACT.

"The new labour hire licence gives workers the confidence that they are employed by a licensed provider who treats their workers properly," Ms Agius said.

"On November 27, 2021, we will begin taking compliance and enforcement action against labour hire providers who are not licensed and who are found not to be complying with workplace laws and standards."

The laws passed the ACT's parliament in May 2020. The territory will be the fourth jurisdiction to implement the laws following Victoria, Queensland and South Australia.

Companies that apply for a licence would need to prove a history of ongoing compliance with industry standards and workplace laws.

Corporations could face a fine of up to $480,000 for non-compliance.

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ACT Industrial Relations Minister Mick Gentleman said he believed the scheme would encourage responsible employment practices and recognise legitimate providers.

"We want to make sure labour hire workers receive the same workplace standards as other workers in the ACT," Mr Gentleman said.

"Workers with casual or unstable employment have also been among the hardest hit by the pandemic, on top of being more vulnerable to poor working conditions.

"We're committed to reducing exploitation of these workers, including underpayment, unauthorised wage deductions and unsafe working conditions."

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