The model Work Health and Safety (WHS) Act covers labour hire arrangements, including:
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arranging a worker for a short time to relieve staff shortages
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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. You are a PCBU if you:
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engaged labour hire workers
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on-hired labour hire workers
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influenced or directed labour hire workers’ activities.
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.
PCBU’s duty to labour hire workers
The primary duty of care under the model WHS Act is owed by a PCBU to a ‘worker’, which includes a labour hire worker.
All labour hire PCBUs and host PCBUs have a primary duty of care to ensure, so far as is reasonably practicable, the health and safety of labour hire workers engaged by, or caused to be engaged by them, or whose activities are influenced or directed by them.
If more than one person has a duty for the same matter, each person must meet their duty to the extent to which they have the capacity to influence and control the matter.
Labour hire PCBUs and host PCBUs must work together in a cooperative and coordinated way so risks are eliminated or minimised so far as is reasonably practicable. A PCBU cannot contract out of or transfer their work health and safety obligations to another party.
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 exemptions to this.
Labour hire and host PCBUs should work together to:
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coordinate return to work arrangements
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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.