What is labour hire?
Labour hire is where a worker is employed by an agency but placed to work for a host business; 'same job, same pay' orders can now apply.
Labour hire is an arrangement where a worker is employed by a labour hire agency (the employer) but performs work for a separate host business that directs their day-to-day work. The agency pays the worker and the host pays the agency a fee.
Since the 2024 Closing Loopholes reforms, the Fair Work Commission can make 'same job, same pay' (regulated labour hire arrangement) orders. These require a labour hire worker to be paid at least the same as a directly engaged employee would receive under the host's enterprise agreement when doing the same work, closing a long-standing pay gap.
Key facts
- •The agency is the legal employer; the host business directs the work
- •Since the 2024 reforms, the Fair Work Commission can make 'same job, same pay' orders
- •Such orders lift labour hire pay to match the host's enterprise agreement rate for the same work
- •A 3-month exemption can apply for genuine short-term placements
- •Some states also operate labour hire licensing schemes that agencies must comply with
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Ask FairWork Mate AIFrequently asked questions
Am I employed by the agency or the host business?
In a genuine labour hire arrangement, the agency is your legal employer — it pays your wages, super and entitlements — while the host business directs your daily tasks. Your employment rights are generally against the agency.
Does 'same job, same pay' mean I earn the same as permanent staff?
If the Fair Work Commission makes a regulated labour hire arrangement order, you must be paid at least the rate a directly engaged employee would get under the host's enterprise agreement for the same work. It applies to base pay, not necessarily every condition.
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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.