A decision to scrap laws put in place to punish companies that exploit workers has been labelled as an "attack" on the state's most vulnerable workers by the South Australian Opposition.

Key points: State Government plan to repeal SA Labour Hire Licensing Scheme

State Government plan to repeal SA Labour Hire Licensing Scheme The scheme included strict penalties for companies that exploit workers

The scheme included strict penalties for companies that exploit workers Opposition labels the repeal as an "attack" on vulnerable workers

Attorney-General Vickie Chapman has announced the State Government will seek to repeal the Labour Hire Licensing Scheme which was put in place by the former state government.

The scheme, which came into effect earlier this year, includes stricter penalties for wrongdoers and a requirement for all labour hire companies to be licensed.

The amendments successfully passed SA Parliament in November 2017 and stemmed from a Four Corners investigation alleging the exploitation and underpayment of migrant workers at various companies.

"The whole regime will go," Ms Chapman told the ABC.

"The labour hire laws were established on ideology and they'll be repealed on common sense.

"We end up with a situation where the innocent are punished just to get to a few guilty."

The move has been met with both support and outrage, with Business SA applauding the repeal but the Opposition and SA Unions vowing to fight against it.

An 'attack' on the most vulnerable workers: Opposition

Opposition spokesman Kyam Maher said the laws were originally supposed to come into operation last month.

"This act is a scheme to license labour hire firms, this will make sure that those businesses that are doing the right thing will continue to be able to exist and conduct business," he said.

"But what it will mean is those who are doing the wrong thing, will get detected and won't be licensed."

Mr Maher condemned the decision to abandon the reforms, saying it would leave workers open to exploitation.

"It really is an attack on some of the most vulnerable workers in this state," he said.

But Business SA executive director Anthony Penney said the laws targeted businesses which were doing the right thing, rather than seeking out the bad.

"There is potential the definition will unintentionally capture a vast array of South Australian businesses that are not in the labour hire industry," he said.

"[It] does not focus on the industries that are of particular concern, such as horticulture."

Four Corners exposed a labour hire company underpaying workers by up to $5 per hour. ( ABC: Four Corners )

Ms Chapman said a taskforce would be introduced to investigate and prosecute companies that were exploiting workers.

"From our perspective, anyone who exploits someone in the workplace, particularly those that might vulnerable … then they should be investigated and prosecuted accordingly," she said.

"But to set up an entire regulatory regime of licensing, which clearly was going to capture way beyond what was expected, was just absurd.

"But with it I will establish a taskforce to be absolutely sure that if there is a complaint relating to behaviour which should be dealt with, then we can obviously identify that.

"The whole regime required a level of red tape, a licensing regime for everybody, just to deal with a few … so of course, it was a ridiculous process to be undertaken."

Unions 'shocked' and 'flabbergasted' by decision

SA Unions secretary Joe Szakacs said he was "shocked" and "flabbergasted" by the decision and said the organisation would strongly resist the move.

"We think it's a pretty shocking decision from the current Liberal Government, in particular the Attorney-General Vickie Chapman. These laws were not a fly-by-night idea," he said.

"These laws protect the most vulnerable members of our community… they're facing rampant exploitation and frankly, the laws are simply just enough to start to deal with this exploitation.

"For the current Government to announce that they're going to repeal the laws after a process of consultation with members of the business community, we're shocked, we're flabbergasted.

"We don't think that the Liberals are doing this for any other reason than payback for the business community that got them elected."