Reading time: 2 minutes

What is an on-hire worker?

An on-hire worker is also known as a labour hire or agency worker. On-hire firms often hire a worker (the on-hire worker) and send them to work for another organisation, called a host organisation. The host organisation pays the on-hire firm and the on-hire firm pays the on-hire worker.

What to include in an on-hire agreement between the on-hire firm and the on-hire worker?

The on-hire firm needs to take into consideration the National Employment Standards (NES) and any relevant award when entering into an on-hire agreement with an on-hire worker. The on-hire firm needs to provide their workers with the minimum entitlements detailed in the NES. These entitlements prevail over any award, agreement or contract of employment that apply to the on-hire worker but would be considered less beneficial than these entitlements.

Do the host organisations have any obligations to on-hire workers?

Although the agreement is between the on-hire firm and the on-hire worker, the host organisation needs to follow the appropriate workplace health and safety requirements while hosting the on-hire worker. The host organisation also needs to abide by State and Commonwealth legislation relating to equal opportunity, discrimination, sexual harassment and unlawful workplace discrimination. The host organisation could be liable for contraventions of the Fair Work Act 2009 if they are involved in any way in a contravention committed by the on-hire firm.

What are the tax obligations of the on-hire firm?

As an on-hire firm, you need to withhold tax from the payments made to your on-hire worker. You may also be liable for paying superannuation or fringe benefit tax.

Are on-hire workers considered employees?

An on-hire worker is usually employed by an on-hire firm on a casual basis making them casual employees. However, depending upon the demands of the business, on-hire workers can also be hired as independent contractors.

Although the host organisation has a significant degree of control over on-hire workers, the contractual relationship is with the on-hire firm. An on-hire agreement between the on-hire firm and the on-hire worker (whether it be as employee or contractor) should clearly outline the terms and conditions of the arrangement to avoid confusion in practice.


If you are planning on entering into an on-hire agreement get in touch with LegalVision today to have your agreement drafted or reviewed by one of our specialist lawyers!


Australia’s Global Talent Visa: How to Attract Top Talent

Thursday 7 October | 11:00 - 11:45am

Understand how to navigate Australia’s complex migration system to attract top overseas talent with our free webinar.
Register Now

5 Essential Contracts for your Online Business

Thursday 14 October | 11:00 - 11:45am

Learn which key contracts will best protect your online business with our free webinar.
Register Now

Key Considerations When Buying a Business

Thursday 11 November | 11:00 - 11:45am

Learn which questions to ask when buying a business to avoid legal and operational pitfalls, so you can hit the ground running. Join our free webinar.
Register Now

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. From just $119 per week, get all your contracts sorted, trade marks registered and questions answered by experienced business lawyers.

Learn more about LVConnect

Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

Our Awards

  • 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Winner – Australasian Lawyer
  • 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year - Australasian Law Awards
  • 2019 Most Innovative Firm - Australasian Lawyer