Find the Best Labour Hire Companies Near You

'Labour hire' refers to the practice of hiring workers from an external agency rather than hiring them directly as employees. Labour hire involves three parties: the worker, the labour hire company and the client. These workers, provided by the labour hire agency, are employed by the agency, which also handles their wages, taxes, and insurance.

The labour hire company outsources their workers to their clients on either a temporary or permanent basis. This arrangement allows companies to flexibly manage their workforce according to current demand, without the long-term commitment associated with direct hiring. If the workers are hired temporarily, they are officially employed by the labour hire company. This means that the same labour hire company pays all benefits owed to the worker. Labour hire can encompass a wide range of skill levels, from unskilled to highly specialised workers, depending on the needs of the hiring company.

Below are the benefits of using labour hire:

• Pre-screened and vetted. The screening process is one of the most time-consuming processes when looking for new workers. However, with labour hire companies, you are immediately provided with workers that are screened thoroughly according to your work preferences. To deliver quality labour services, labour hire companies also go through a vetting process which includes background checks, reference checks, resume reviews, and medical assessments, including drug and alcohol screenings.

• Save time and money. Through labour hire contractors, you will have less time and money spent on advertising, finding, recruiting and even training new employees. This is because labour hire companies already have all that covered. Instead, you only need to provide details of the work you require, such as the location and the start date. Labour hire benefits you in a way so that you can focus on completing the project instead of wasting time looking for workers for the project.

Other than the hiring process, you will also save money through reduced employment costs associated with recruiting new workers; for instance, payroll taxes, sick and annual leaves, worker's compensations, training costs and more.

• Hire workers with specialised skills. Labour hire companies have all the necessary skills and experience to find the worker that will fit the job description their clients provided. Using their extensive database of workers, they will be able to hand over someone to fill the position quickly. For times when a specific worker is unavailable in their database, labour hire companies are experts in immediately finding a suitable worker.

• Flexible and timely. Fluctuations tend to happen to businesses. There will be times of sudden increase in their demand for services, as well as downtimes. For instance, construction labour hire may increase when extra hands are needed to complete a project. Labour hire companies can cater to these needs in a timely manner.

Labour hire workers are also called 'casual employees'. Labour hire workers are employed by labour hire companies when they are not hired permanently by the clients. Therefore, labour hire companies are the ones who pay the wages and have a legal contract of employment with the worker.

The key difference between a contractor and labour hire lies in the employment relationship and the nature of the work arrangement. Contractors are self-employed individuals or businesses contracted to perform a specific task or project within a set timeframe, often with a particular outcome in mind. They manage their own taxes, insurance, and work processes.

In contrast, labour hire workers are employed by an agency that handles their employment obligations, and they are supplied to work under the direction of the hiring company. While contractors operate independently, labour hire workers integrate into the hiring company’s workforce for the contract duration.

Below are three differences between labour hire and contractors:

• Employment period. Labour hire workers have a more flexible employment period than contractors. This is because contractors have a defined term of employment in their contracts. So, when employers choose to extend the contractor's employment period, they will have to draft another contract. Meanwhile, employers can simply extend the employment period of a labour hire worker indefinitely.

• Cost. For contractors, you will be required to spend money in finding, recruiting and training them. While labour hire companies have already done all the recruitment, vetting, and training process for your labour hire workers.

• Changing workers. It is easier to change labour hire workers than contractors. If you are unsatisfied with the work of a contractor, it may require legal proceedings pertaining to the contract. But with labour hires, you can simply call the labour hire company to ask for a worker replacement.

With iseekplant's nationwide network of labour hire suppliers, you can easily find them in all capital cities from Brisbane to Sydney, Canberra, Melbourne to Darwin, Perth and Adelaide. You can also find labour hire quotes in all major towns and cities from Cairns down to Townsville, Mackay, Sunshine Coast, Gold Coast and Newcastle.

Use iseekplant's get a quote tool to easily book labour services in your area. We offer a wide network of labour hire solutions across the country. Simply give us a call on 1300 691 912 or email us at projects@iseekplant.com.au to request your needs and we'll get quotes to you within a few hours!

Average common tradie rates

• Bricklayer: $40 - $60 per hour
• Carpenter: $40 - $120 per hour
• Concreter: $40 - $67 per hour
• Demolition Contractor: $75 per hour
• Electrician: $80 - $130
• Painter: $12 - $60 depending on the location (interior or exterior)
• Tiler: $45 - $65

Find our 2021 Labour Hire Cost Guide here!

Labour hire is not the same as casual employment, although they share some characteristics, like flexibility. Casual employees are directly hired and paid by a company, usually with a loading to offset the lack of benefits like sick leave. They work irregular hours and have no guaranteed work continuity.

Labour hire workers, on the other hand, are employed by the labour hire agency, not the company they work at. They might work set hours for the duration of a project, and the labour hire agency is responsible for their pay and entitlements. Both arrangements offer flexibility, but they operate within different employment frameworks.

Companies use labour hire for several reasons. It offers flexibility to scale the workforce up or down based on current demand, reducing the financial and administrative burden of direct employment. Labour hire allows businesses to access a pool of skilled workers quickly, which is particularly useful for meeting project deadlines or covering staff shortages without the lengthy process of recruiting and hiring.

It also provides an opportunity to evaluate workers’ performance without long-term commitment, offering a potential pathway to permanent employment for standout individuals. Additionally, using labour hire can help companies manage risks associated with employment, as the labour hire agency is responsible for employment obligations.

Labour hire is not typically considered a sole trader. Labour hire refers to a business model where a company (labour hire provider) leases out employees to other businesses (hosts or clients) for work. A sole trader, on the other hand, is an individual running their own business.

While individuals can work as contractors through labour hire companies, the labour hire providers themselves are usually structured as companies or partnerships that employ workers and lease them out. This distinction is crucial for understanding legal, tax, and operational responsibilities.

Yes, in many regions within Australia, operating a labour hire company requires obtaining a labour hire licence. This regulatory measure ensures that labour hire providers meet specific standards for worker rights, safety, and pay.

The requirement for a licence varies by state and territory, with specific legislation in place to govern the application process, the standards to be met, and the penalties for non-compliance. Before starting a labour hire service or engaging with one, it's essential to check the local regulations to ensure all legal obligations are met.

On a tax return, labour hire arrangements might have implications for both the labour hire company and the individuals they employ. For the labour hire company, payments made to workers are generally deductible expenses. For workers, income earned through labour hire is assessable and must be reported. The specifics can vary based on individual circumstances and the business structure of the labour hire provider. It's recommended to seek advice from a tax professional to understand how to report income and expenses related to labour hire accurately.

Yes, labour hire companies are required to pay superannuation for their employees, just like any other employer in Australia. This obligation applies to both Australian residents and workers in Australia on temporary visas. Superannuation contributions must meet the minimum Super Guarantee rate (11%) set by the government, which is calculated as a percentage of the employee's ordinary time earnings. Failure to meet superannuation obligations can result in penalties for the labour hire company. This ensures that individuals working through labour hire arrangements are afforded the same superannuation benefits as direct employees.