Labour Hire Agreements: What You Need To Know

If you are a labour hire business, you’ll need a Labour Hire Agreement. 

In a labour hire business, staff are provided to other businesses on-demand. However, you’re still the one who pays the staff — so it works a little differently to traditional recruitment agencies. 

Unlike a recruitment agency, in labour hire businesses, you have a continued relationship with staff once they’re placed within a workplace. For instance, you’ll continue to have Workplace Health & Safety responsibilities to these staff, and you’ll be responsible for paying the staff (along with other employer obligations).

What Is A Labour Hire Agreement?

A Labour Hire Agreement is essential to ensure that the pay rates, rights and responsibilities of all parties involved are confirmed. It also addresses issues like liability, indemnification and more. 

A Labour Hire Agreement essentially forms the contract between you and the businesses who would like to ‘hire’ your staff on-demand. 

Labour hire can be tricky (and, in some states, heavily regulated), so you want to make sure that you’re doing it right. 

This is where a Labour Hire Agreement comes in to protect your interests.

When you send staff (who are technically your employees) to another workplace, it leaves lots of room for mishaps or issues. At the end of the day, you’ll still be responsible for paying those employees — so you want to make sure that the businesses are on the same page as you.

What Is Included In A Labour Hire Agreement? 

A Labour Hire Agreement will include clauses concerning liability, dispute resolution, payment details, indemnification, and the rights and responsibilities of everyone involved. 

Need Help?

At Sprintlaw, our lawyers are experts in this area and have drafted many Labour Hire Agreements for diverse entities. 

Don’t hesitate to give us a call on 1800 730 617 or email us at team@sprintlaw.com.au to find out more. Our friendly team of legal consultants are available for a free, no-obligations chat to talk you through your options.

Justine Wu

Justine is a legal consultant at Sprintlaw. She has experience in civil law and human rights law with a double degree in law and media production. Justine has an interest in intellectual property and employment law.