Host or labour hire PCBU

  • Labour hire involves a host organisation using workers from a labour hire agency for a short period of time to relieve staff shortages, or to supplement the workforce during peak seasonal demand. These arrangements are sometimes referred to as 'on-hire' or 'agency' arrangements.

There may be multiple labour hire or host organisations. For example, one labour hire agency may provide workers to another labour hire agency which then supplies workers to a host. 

Both the labour hire agency and the host organisation are persons conducting a business or undertaking (PCBUs). As PCBUs they are both responsible for the health and safety of the labour hire worker.  Labour hire PCBUs and host PCBUs cannot contract out of or transfer their WHS duties to each other or another party.

Labour hire PCBUs and host PCBUs must work together in a cooperative and coordinated way to ensure: 

  • risks to the health and safety of labour hire workers are eliminated or minimised so far as is reasonably practicable. 
  • the work environment of the labour hire worker is safe and without risks to health and safety. 
    • As the PCBU at the workplace, the host PCBU must make sure workers are provided with adequate and accessible facilities (e.g washing facilities) and have access to first aid equipment and trained first aid officers. An emergency plan must also be prepared, maintained and implemented for the workplace. 
    • The labour hire PCBU must ensure the host PCBU is providing a safe working environment. This includes verifying workers have access to adequate facilities, first aid and there are emergency plans and procedures in place.  
  • information, instruction, training and supervision is provided to labour hire workers. This includes making sure labour hire workers have the relevant qualifications, experience and/or necessary licence to carry out the work. Workers must also be provided with any additional training required for the particular work and a safety induction that sets out WHS policies, procedures and practices.
  • suitable personal protective equipment (PPE) is provided to labour hire workers as well as information, training and instruction on how to use, store and maintain PPE.
  • agreed processes are in place to inform the WHS regulator of notifiable incidents.
  • agreed processes are in place to ensure workers are consulted before making decisions that impact their health and safety. PCBUs must ensure the worker is informed and understands the consultation process and how to report hazards or incidents.
  • conditions of the workplace and health and safety of workers are monitored and reviewed. Any new hazards or changing risks to health and safety are assessed and managed.

Depending on the type of work being performed, there may be additional WHS duties and obligations common to both the labour hire and host PCBU. All PCBUs involved in the arrangement need to  work together in a cooperative and coordinated way to ensure all duties are met. 

Labour hire and workers' compensation

In most jurisdictions the labour hire PCBU (not the host PCBU) provides workers' compensation to the workers. However, there are exemptions to this. Labour hire and host PCBUs should work together to:

  • coordinate return to work arrangements, and
  • support workers through the return-to-work process.

Contact your workers' compensation authority about understanding and complying with your workers' compensation obligations, as penalties can apply.

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