Labour Hire – What’s it all about?
Labour hire is the concept of outsourcing a business’ recruitment process to a third party (aka the labour hire agency/company). They take care of the entire hiring process, including payroll, superannuation, tax, etc., and ensure that the workers provided meet the needs and expectations of the client company.
What is the difference between labour hire and contractors?
Independent contractors are self-employed and work for businesses under a contract for their services. Labour hire agencies engage workers and then hire them out to a business to perform work for that business. The business where the worker actually performs work is often referred to as the ‘host’.
Who is a labour hire provider?
A labour hire provider is an individual or organisation that in the course of conducting a business has an arrangement with one or more individuals under which the business supplies the individuals to perform work in and as part of a host’s business or undertaking and the provider is obliged to pay the individual for performance of the work.
To operate legally in Victoria from 30 October 2019, a labour hire provider must:
- be licensed, or
- have applied for a licence before 30 October 2019 and the application has not been refused.
Prowell Group is a licensed Labour Hire provider and provides both permanent and temporary labour to leading businesses across Australia. Contact Us today to discuss your requirements.
