Labour hire offers businesses valuable flexibility, but it also raises an important question: who is responsible for the safety of labour hire workers? Many host businesses assume that safety is the provider’s job, while some providers assume the host will handle everything on site. In reality, both have legal duties, and misunderstandings can leave workers exposed to unnecessary risks. If you’re working with labour hire companies sydney businesses rely on, understanding these shared obligations is essential for protecting workers and your business.
This article explains how work health and safety duties are shared under Australian law and offers practical steps to manage them effectively. It’s general information only, so seek specific advice where needed.
Understanding the Legal Framework
New South Wales, like most Australian jurisdictions, has work health and safety laws based on the national model laws. Under these laws, a person conducting a business or undertaking, commonly referred to as a PCBU, has a primary duty of care to ensure, so far as is reasonably practicable, the health and safety of workers engaged or influenced by the business.
In a labour hire arrangement, there are at least two PCBUs: the labour hire provider, who employs the worker, and the host business, where the worker carries out their duties. Both owe a duty of care to the labour hire worker at the same time. One business can’t simply transfer its responsibilities to the other.
The Duty to Consult, Cooperate and Coordinate
When more than one business shares a duty, the law requires them to consult, cooperate and coordinate their activities with each other, so far as is reasonably practicable. In practice, this means the host business and labour hire provider must work together to identify hazards, agree on how risks will be controlled and clarify who will do what.
Safe Work Australia has published guidance on labour hire arrangements that outlines how these shared duties work in practice.
What Labour Hire Providers Should Do
While the host business controls the workplace day to day, the labour hire provider still has significant responsibilities. These typically include assessing the host’s workplace and the tasks the worker will perform before placement, making sure workers have the skills, licences and training needed for the role, providing general WHS training and information, maintaining regular contact with workers and the host to monitor conditions, and responding promptly to any safety concerns or incidents.
What Host Businesses Should Do
As the business directing the work and controlling the workplace, the host plays a critical role in day-to-day safety. Host obligations generally include providing a site-specific induction covering hazards, emergency procedures and site rules, ensuring the work environment, plant and equipment are safe, providing appropriate supervision, supplying any personal protective equipment needed for the task, and consulting with labour hire workers about safety matters, just as you would with your own employees.
Practical Steps for Getting It Right
Shared duties work best when expectations are clear from the outset.
Put Responsibilities in Writing
Your service agreement should clearly outline who is responsible for each aspect of safety, including inductions, training, PPE, supervision and incident reporting. While a contract can’t remove legal duties, it can clarify how they’ll be managed.
Share Information About Hazards
Before workers start, provide your labour hire provider with detailed information about the tasks, equipment and hazards involved. Invite them to visit your site and review your risk assessments.
Don’t Change the Job Without Telling the Provider
One of the most common problems in labour hire arrangements is “task creep”, where workers are asked to perform duties they weren’t placed for or trained in. If a worker’s role changes, notify the provider and confirm the worker has the necessary skills, licences and training.
Treat Labour Hire Workers Like Your Own Team
Include labour hire workers in toolbox talks, safety meetings and consultation processes. Make sure they know how to raise concerns and that their feedback is taken seriously. Workers who feel included are more likely to speak up about hazards.
Report and Investigate Incidents Together
If an incident or near miss occurs, notify the labour hire provider promptly and work together to investigate what happened and prevent a recurrence. Remember that certain serious incidents must be notified to the regulator.
Common Pitfalls to Avoid
Businesses can run into trouble by assuming the provider has trained workers for site-specific tasks, failing to induct short-term or casual workers, using labour hire workers for high-risk tasks without verifying licences, and not involving labour hire workers in safety consultation. Each of these gaps can increase the risk of harm and expose both businesses to legal consequences.
The Benefits of Getting It Right
A strong, collaborative approach to safety benefits everyone. Workers are better protected, incidents are reduced, productivity improves and your business builds a reputation as a safe place to work. Labour hire providers are also more likely to send their best workers to hosts who take safety seriously.
Regularly reviewing these arrangements helps ensure they keep pace with changes in your workplace.
Final Thoughts
Safety in labour hire arrangements is a shared responsibility. Both the labour hire provider and the host business owe a duty of care to workers, and they must consult, cooperate and coordinate to manage risks effectively. By clarifying responsibilities, sharing information, providing proper inductions and treating labour hire workers as part of your team, you can create a safer workplace for everyone.