Labour hire workers in Australia are employed by agencies and supplied to host firms, often facing different conditions compared to permanent employees. The new “Same Job, Same Pay” laws, effective from November 1, 2024, ensure these workers receive the same pay as permanent employees for the same job, addressing wage disparities and making work fairer.
Note: This is general information only, and for more specific advice you should speak to your union.
A labour hire worker in Australia is employed by a labour hire agency, which then supplies their labour to a host firm under a commercial contract. The worker performs tasks for the host firm, but their wages and employment conditions are managed by the labour hire agency. This arrangement means the worker does not have a direct employment relationship with the host firm. Labour hire workers often face different conditions compared to permanent employees, such as lack of job security and benefits.
While labour hire is a legitimate form of employment, to complete short-term projects or handle busy periods for example, some employers have been using labour hire as a way to lower wages. This has resulted in situations where two people are working together, doing exactly the same job, but on vastly different pay and conditions.
Our workplace laws have been changed to address this. The new “Same Job, Same Pay” laws require that labour hire workers receive the same pay as permanent employees of the host company for performing the same job. These laws, effective from November 1, 2024, aim to close loopholes that allowed labour hire companies to undercut enterprise agreements. The Fair Work Commission can now order that labour hire workers be paid the same as the host company’s employees if certain conditions are met, ensuring fairer wages across industries.
Reach out to your union for more specific information about how you and your workmates can make the most of these new rights, or enter your details below to receive updates on your rights at work.
Read more about your new rights at work.
This publication has been funded by the Australian Government Department of Employment and Workplace Relations through the Productivity, Education and Training Fund grant program.