Labour hire industry
and duty of care
Reforms to the
Occupational
Safety and Health
Act 1984 provide
equivalent levels
of protection
to workers in
labour hire
arrangements as
Labour hire agencies or agents and the host or client have the same
responsibilities as employers, over matters which they each control, to
ensure the safety of workers. Workers in labour hire arrangements have
the same responsibilities as employees.
Effective systems should be in place to identify any hazards, assess the
risk and ensure the safety of the worker, on placement and throughout
the time the worker is hired to carry out work for the client, including a
system for monitoring and addressing any changes that may occur in the
workplace.
The number of people working under contract, temporary and labour hire
employment arrangements has increased dramatically in the past 10 years.
The range of working relationships has created particular challenges for
managing occupational safety and health in workplaces. The biggest and
fastest growing of these new employment arrangements is labour hire
which is now utilised in many key industries.
Amendments to the Occupational Safety and Health Act 1984 (Act)
introduced from 1 January 2005, provide an equivalent level of protection
to workers engaged in labour hire arrangements as that applying to other
workers.
all other workers.
What are labour hire arrangements?
Labour hire refers to arrangements when a host organisation or person
(the client), in the course of trade or business, engages workers from an
organisation which specialises in providing labour (the labour hire agency
or agent). The arrangement is characterised by:
an agreement for remuneration between the client and the agent
regarding supply of a worker;
an agreement (which may be a contract of employment) between the
agent and the worker; and
the lack of a contract of employment between the client and the
worker.
WorkSafe
Westcentre, 5th Floor, 1260 Hay Street
West Perth, Western Australia 6005
Telephone: 9327 8777 Infoline: 1300 307 877
Facsimile: 9321 8973 Email: [email protected]
Internet: www.docep.wa.gov.au
WorkSafe bulletin 6 / 2005
Everyone involved in a labour hire arrangement has duties to ensure a
safe workplace.
An agent is a person who carries on a business which provides workers (who can be employees or
contractors) to carry out work for clients of the person. This includes a group training organisation under the
Industrial Relations Act 1979, such as a group apprenticeship scheme.
Workers are usually employed and paid by a labour hire agency or agent which requires them to perform
their tasks or functions for a client, usually under that clients direction. Other names for these workers are
on-hired workers, dependent contractors or temps.
Duties of the agent and the client
Sometimes, there is a misunderstanding that engaging a worker through a labour hire agent involves fewer
safety and health obligations.
Both the agent and the client have the same general duties of care as those applicable to an employer under
section 19 of the Act, in relation to those matters over which each has the capacity to control. In broad terms
an employer must, as far as practicable, provide a work environment in which employees are not exposed
to hazards.
While it is recognised that the agent does not have day to day control of the work at a clients workplace,
the agents responsibilities do not stop simply because the work is not carried out at the agents workplace.
There is much the agent can do, for example:
verify and match training, skills and experience of the worker to the needs of the task;
provide a general induction and make arrangements with the client to ensure that specific induction is
provided in relation to the tasks to be undertaken and the plant to be used;
ensure that any change of duties does not present a hazard to the worker should the client and/or the
worker notify the agent that change is being considered;
provide information and training to make sure the worker knows how to carry out his or her activities
safely;
ensure the work environment (including plant and equipment, systems of work and other matters under
the control of the client) is safe;
ensure that adequate on-site supervision is provided;
ensure the work of the clients employees does not harm the safety and health of the labour hire
worker; and
report notifiable injuries and diseases to WorkSafe.
The client usually has day to day control of the labour hire worker so there is much the client can do to ensure
a safe workplace, for example:
ensure the work environment (including plant and equipment, systems of work and other matters under
the control of the client) is safe;
provide specific induction in relation to the tasks to be undertaken and the plant to be used;
Regional offices:
Bunbury (08) 9722 2888
Karratha (08) 9185 0900
notify the agent if any change is being considered;
provide information and training to make sure the worker knows how to carry out his or her activities
safely;
provide adequate on-site supervision;
ensure the work of employees does not harm the safety and health of the labour hire worker; and
report notifiable injuries and diseases to WorkSafe.
There are also a number of actions to be taken jointly, with the agent and client needing to consult with each
other, for example:
identify hazards in relation to the task and assess the risk associated with the task, prior to placement
of a worker;
understand obligations of how to deal with hazards;
consider and, so far as practicable, implement control measures to ensure a safe work environment;
ensure personal protective equipment is provided to the worker at no cost to the worker; and
provide on-site training and induction, and resolution of issues procedures.
Duties of the worker
A worker in a labour hire arrangement has the same general duties of care as those applicable to an
employee under section 20 of the Act. Workers must take reasonable care of their own safety and health and
that of others in the workplace.
A person cannot contract out of their responsibilities under the Act.
There are also legal rights and obligations on workers in relation to their conditions of employment and
wages about which employers should be aware. For further information, ask for the fact sheet called
Employees and Sub-Contractors available from the Labour Relations Division or contact Wageline on
1300 655 266.
TTY: (08) 9327 8838
Need more information?
Contact WorkSafe on 1300 307 877 and ask for Legal Services
or check out the website at www.safetyline.wa.gov.au
DP100123 / Feb 05 / 1000
This bulletin is available on request in other formats to assist people with special needs.
