What is a Labour Hire? A Complete Aussie Guide for Workers and Employers

How Labour Hire Works

• The Labour Hire Agency: They’re the official employer. They handle recruitment, payroll, super, tax, and entitlements.
• The Host Company: This is the client business where the worker actually performs the job. They direct daily duties and supervise the worker on-site.
• The Worker: Employed by the agency, but works at the host company under their direction.

In this triangular arrangement, communication and clarity between all parties is key. Confusion can arise if roles and responsibilities aren’t clearly defined — especially when it comes to safety, entitlements, or resolving disputes.

Benefits of Labour Hire

• Flexibility: Hire tradies, chefs, or traffic controllers for a day, a week, or however long you need — without the long-term commitment.
• Access to Skilled Workers: Agencies often maintain talent pools with workers ready to hit the ground running.
• Less Admin: No need to worry about payroll, super, or tax — the agency takes care of that.
• Cost Savings: For many businesses, it’s cheaper than going through the full recruitment cycle.

Important Legal Considerations

Labour hire arrangements are governed by Australian employment law. Key areas to be aware of include:

• Workplace Health & Safety: Both the agency and the host have responsibilities for ensuring the worker is safe on the job.
• Discrimination & Fair Work: Workers must be treated fairly, regardless of whether they’re agency or direct employees.
• Awards and Agreements: Labour hire workers must be paid according to the correct award or enterprise agreement.

Real Talk: Common Challenges

• Who’s the Boss? Workers often aren’t sure who to turn to with issues. Is it the agency or the host?
• Confusion Around Entitlements: Some workers may not know if they’re getting the correct pay, leave, or protections.
• Short Notice Shifts: Flexibility can be a blessing and a curse — workers may be asked to work with little notice.

That’s why choosing a reputable labour hire agency — one that’s upfront, fair, and knows the ropes — is so important.

what is a labour hire

FAQs: 15 Common Questions About Labour Hire

1. 1. What is labour hire?
   It’s when a worker is employed by an agency but works at a different company (the host) under their supervision.
2. 2. Who pays the worker?
   The labour hire agency pays the worker, even though the worker is on-site at the host company.
3. 3. Is labour hire legal in Australia?
   Absolutely — but it’s tightly regulated under Fair Work and WHS laws.
4. 4. What industries use labour hire?
   Construction, hospitality, agriculture, logistics, events, healthcare, and more.
5. 5. Are labour hire workers entitled to super?
   Yes, the agency must pay super just like any other employer.
6. 6. Can I get a permanent job from a labour hire role?
   Yes, many temp jobs lead to full-time offers. It’s often seen as a foot in the door.
7. 7. Do labour hire workers get leave?
   Casual workers don’t, but part-time/full-time agency employees do.
8. 8. What’s the difference between labour hire and outsourcing?
   Labour hire = you control the worker. Outsourcing = you contract out the task and don’t manage the workers.
9. 9. Is there a minimum shift length?
   Yes — typically 3 or 4 hours depending on the award.
10. 10. Can a labour hire worker be dismissed unfairly?
    Yes, and they have access to unfair dismissal protections under Fair Work.
11. 11. Who’s responsible for safety?
    Both the agency and the host share responsibility.
12. 12. Are there laws specifically for labour hire?
    Yes. Some states (like Victoria and Queensland) have labour hire licensing laws in place.
13. 13. What are the worker’s rights?
    The same rights as other employees: fair pay, safe work, and protection from discrimination.
14. 14. How quickly can a business get workers?
    Sometimes same-day. Agencies keep pools of ready-to-go workers.
15. 15. How do I choose a good labour hire agency?
    Look for transparency, good reviews, and compliance with labour laws and licences.

Quick Recap

• Labour hire = 3-way relationship between agency, host, and worker.
• Used in loads of industries — it’s flexible, efficient, and scalable.
• Both agency and host have responsibilities to the worker.
• Know your rights and choose agencies that play fair.

Final Thoughts: Is Labour Hire Right for You?

Whether you’re a business needing hands on deck fast, or a worker looking for flexible gigs or a foot in the door, labour hire can be a ripper solution. Just make sure everyone knows their role, and that your agency is licensed, above board, and treating people right.

What People Are Saying

“Yakka Labour found us skilled traffic controllers in under 2 hours. Life saver for our Sydney site.” – Steve M., Site Supervisor

“As a worker, I love the freedom. I get steady work but can still surf in the mornings.” – Jake T., Labourer in Byron Bay

“We used to waste time recruiting. Now we ring Yakka, and boom — someone’s onsite within hours.” – Helen R., Operations Manager

The Labour Hire Agency

A labour hire agency is a business that officially employs workers and assigns them to work at third-party businesses (the hosts). They carry the legal responsibility for employment matters such as:

• Recruitment: Advertising roles, shortlisting, interviewing and selecting suitable candidates.
• Payroll: Handling wages, tax withholdings, superannuation payments and payslip distribution.
• Entitlements: Ensuring workers receive their legal entitlements under Fair Work, including minimum wage, super, leave (if applicable), and safe working conditions.

Think of them as the legal ’employer of record’ — the behind-the-scenes engine that keeps everything compliant and above board.

The Host Company (or “Host”)

The host company is the business that actually needs the workers. They bring in the labour hire staff from the agency to support their operations, often during busy periods, special projects, or to cover absences. Their main roles include:

• Day-to-Day Supervision: Directing what the workers do, setting daily tasks, and managing workflow.
• Providing Tools and Induction: Ensuring workers are trained on their systems, safety protocols, and equipped to do the job properly.
• Communicating Performance: Feeding back to the agency on the quality of the worker’s performance and work ethic.

While they’re not technically the employer, hosts must treat workers fairly and provide a safe, respectful workplace — no dodging responsibility here.

The Worker

The worker is the individual employed by the labour hire agency, but who physically works on-site at the host company. They follow instructions from the host’s supervisors but remain legally employed by the agency. Workers often benefit from:

• Flexibility: They can take on jobs that suit their schedule — from casual day shifts to longer-term placements.
• Exposure to Different Workplaces: They gain varied experience across industries or sites.
• Stepping Stone to Permanent Roles: Many start with agency work and are later hired directly by the host.

That said, workers should always understand their entitlements and know which party to contact if something goes wrong — whether it’s about pay, safety, or unfair treatment.

Terms and Conditions

Pay rates, shift times, allowances, overtime rules — these can vary between jobs and agencies. It all comes down to the contract between the agency and the host company. Workers should ask upfront:

• What award or enterprise agreement applies?
• Are there penalties, allowances, or overtime?
• How are shifts confirmed or cancelled?

Having this info in writing avoids misunderstandings and protects everyone involved.