With government agencies working together to enforce labour hire employment compliance, it is important to understand responsibilities. GM Joe Galea highlights what organisations and supervisors and managers need to know.

Labour hire is an arrangement where an agency supplies workers to your business, who becomes the host employer, on a temporary or contract basis. There are strict compliance obligations in Australia for both the labour hire provider and the host employer.

“When onboarding a new client, we always provide a guide for supervisors and managers,” Joe says, “and more often than not, the Host Employer is surprised by one or more of the items listed, even when they’ve previously used labour hire agencies.”

The two main reasons employment compliance issues occur in labour hire arrangements is because the provider is not above board, or the direct supervisor doesn’t understand their obligations.

With government agencies working together to crack down on compliance and casual employment now determined by what is happening in practice, not just what the employment contract states, it’s essential to get it right.

Here are a few things Supervisors and Managers need to know.

Understanding the Relationship

Under the changes to the definition of casual employment, the real working relationship is what counts, not just what the contract says.

A Host Employer is not the employer, so it can't act like one. Supervisors and on-hired workers often find this hard to grasp, especially once they've built a working relationship.

That's why the labour hire provider needs to know who each worker's direct supervisor is. Let them know if this changes, so the new supervisor understands their responsibilities.

Key supervisor responsibilities:

• Provide a safe work environment
• Deliver site familiarisation
• Set expectations, including relevant company policies
• Give clear directions on agreed duties
• Supervise day-to-day work
• Verify and approve hours worked
• Give performance feedback to the labour hire provider

Onboarding

Unless agreed otherwise with the labour hire provider, the supervisor handles site familiarisation and induction. This covers on-site safety and relevant policies and procedures. Check the provider's onboarding process so nothing falls through the gaps.

The provider handles everything else: recruitment, WHS induction, start time coordination, employment documentation, and payroll and rostering setup. They also manage ongoing payroll, licences, registrations and compliance.

Position Description & Responsibilities

If an on-hired worker's role changes from the original request, supervisors and managers must raise it with the labour hire provider first. This includes changes to title, tasks, hours, location or finish date. The provider will check the changes against the worker's capabilities and make sure the pay rate and relevant award still comply.

If the worker asks about pay, the Supervisor should refer them to their employer, the labour hire provider. This applies in every case.

“We’ve had instances where the supervisor has approved billable hours for personal time off for a casual on-hired worker, as a reward for hard work. Unfortunately, this changes the working relationship and may have significant implications for the host employer,” explains Joe.

Health & Safety

If an on-hired worker is injured, the host employer provides immediate assistance. The labour hire provider manages the injury from there and must be notified as soon as possible.

You should also notify the provider if the worker:

• Needs to work in a different area or department from their usual place of work
• Doesn't have the correct Personal Protective Equipment (PPE)
• Isn't working safely

The provider must complete a Workplace Assessment for every site the worker is expected to work at.

As with your own employees, never let an on-hired worker perform tasks they aren't trained or capable of doing. Make sure they understand the policies and procedures for any equipment they use.

Discipline, Issue Resolution or Termination Discussions

This is where the employment relationship matters most. The labour hire provider is the worker's employer, so they must handle all disciplinary action, issue resolution and termination discussions. This applies even when the work has simply dried up.

Never formally discipline an on-hired worker. Call your consultant instead. The provider will gather information from everyone involved before deciding on any action.

If a worker is putting themselves or others at risk, you can send them home for the day. Contact the provider straight away, and avoid any further discussion with the worker about the issue.

Harassment and Complaints

If inappropriate behaviour involving an on-hired worker is reported, you will need to refer it to the labour hire provider immediately for investigation. However, as the Host Employer, you can keep all relevant documentation in your own HR records.

Getting it Right

“Many of these obligations seem counterintuitive when a person is on a host employers’ site, but it is essential to maintain the employer/employee relationship,” says Joe.

Clear responsibilities protect your business, your supervisors and your on-hired workers. The right labour hire provider will take the time to understand your business and work closely with your team, so you get the support you need at every step.

Want to learn more about our labour hire, recruitment or workplace relations services? Contact Acclaimed Workforce today.