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.
FairWork Mate is an independent commercial service. We are not affiliated with, endorsed by, or associated with the Fair Work Ombudsman, the Fair Work Commission, or any Australian Government agency. Content is general information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.