Closing the loophole - Regulated labour hire arrangement orders
18-April-2024| 
Felicity is a workplace lawyer who assists clients in the private and public sector with privacy and employment related issues. She has seen matters through to state and federal courts and tribunals including unfair dismissals, general protections claims, contractual disputes and anti-discrimination claims.
Emma is an experienced workplace lawyer who advises on employment and work health and safety (WHS) issues for clients in diverse sectors, including mining, transport, financial services, insurance, health care and government.
The Fair Work Act 2009 (Cth) has been amended to allow employees, unions and host business/organisations to apply to the Fair Work Commission for an order (RLHA Order) that labour hire employees must be paid at least what they would receive under a host business/organisation’s enterprise agreement (protected rate of pay). If a RLHA Order is made, the labour hire employer will need to pay labour hire employees this protected rate of pay.
What is the rationale for the changes?
- A Senate Inquiry heard evidence of examples where workers, who were employed by labour hire companies, were paid thousands of dollars less to perform the same work alongside employees directly employed by a host company.
- In some context, labour hire has been perceived as means of circumventing enterprise agreement pay rates and remain competitive.
- The changes aim to address concerns about ‘the labour-hire loophole’.
- They provide a regulatory framework to implement the ‘same job, same pay’ principle.
Will this impact me?
We have compiled some questions to help you asses the risk:
When will these changes come into effect?
These changes commenced on 15 December 2023; however, regulated labour hire arrangement orders cannot come into force until at least 1 November 2024.
