On-hire basis

When a company operates on an on-hire basis, it's essentially acting as a middleman between its employees and other companies (known as host organisations). These host organisations use the services of the on-hire company's employees for various tasks, and to support with their workload. The employees continue to remain employed by the original company during these placements. This arrangement can be beneficial for businesses that need specialised or temporary help without permanently hiring new employees.

Who is responsible in an on-hire arrangement?

The on-hire business is the employer, so it must pay the worker correctly under the right award or agreement, provide leave and keep records. The host business directs the day-to-day work and shares work health and safety duties, including induction and safe systems of work. Both should agree in writing who is responsible for what. For example, a host that brings in an on-hire forklift driver must check the driver is licensed and trained for its site.

See labour hire worker and our guide to agency and temporary staff.