The model Work Health and Safety (WHS) Act covers labour hire arrangements, including:
- arranging a worker for a short time to relieve staff shortages
- supplementing the workforce during peak seasonal demand.
PCBUs in labour hire
Typically, labour hire workers are engaged by a labour hire agency which then on-hires them to do work for another organisation (the host organisation). Both the labour hire agency and the host organisation are persons conducting a business or undertaking (PCBUs) responsible for the health and safety of the labour hire worker.
As PCBUs both the labour hire agency and host organisation are responsible for the health and safety of the labour hire worker. Labour hire PCBUs and host PCBUs cannot contract out of or transfer their WHS duties to each other or another party.
You should consider how the model WHS laws apply to you.
There may be multiple labour hire or host PCBUs. For example, one agency may provide workers to another agency which then supplies workers to a host.
Labour hire and workers’ compensation
In most jurisdictions the labour hire PCBU (not the host PCBU) provides workers’ compensation to the worker. However, there are exceptions to this.
Labour hire and host PCBUs should work together to:
- coordinate return to work arrangements
- support workers through the return-to-work process.
Contact your workers’ compensation authority about understanding and complying with your workers’ compensation obligations, as penalties can apply.