Labour hire worker

Labour hire workers are like employees of a temporary staffing agency. They are sent to work in different companies, known as 'hosts,' for short-term assignments or specific projects. The key point here is that their legal employer is the staffing agency, not the host company. This means the agency pays them, provides benefits and handles their employment rights. The hosts benefit from flexible staffing solutions without the long-term commitment of hiring permanent staff.

Labour hire and "same job, same pay"

The labour hire agency is the employer, but the host business still has work health and safety duties to labour hire workers. Under the Closing Loopholes changes, the Fair Work Commission can make a regulated labour hire arrangement order, which requires the agency to pay labour hire workers at least what they would earn under the host's enterprise agreement, with payment obligations applying from 1 November 2024. Some states and territories also require labour hire providers to be licensed. For example, a warehouse with an enterprise agreement may find that labour hire pickers on its site must be paid the agreement rates.

See on-hire basis and our guide to agency and temporary staff.