Recruitment and placement services

Another category of labour hire service providers that require a licence are recruitment or placement services that provide accommodation, pursuant to section 8(1) of the Labour Hire Licensing Act 2018 (Vic.).

Recruitment or placement services are considered labour hire when, an individual or organisation, in the course of providing recruitment or placement services, recruits or places one or more individuals to perform work in and as part of a host’s business or undertaking and the provider provides or procures accommodation for some or all of the period that the individuals are working for the host.

There is no requirement that the provider (the recruiter in this example) has any obligation to pay the worker. This is because in these kinds of arrangements, the worker is paid by the host either directly or indirectly through one or more intermediaries.

The examples provided on this page are for illustrative purposes only, and do not constitute legal advice. You should consider your particular circumstances when determining whether you require a labour hire licence. If you are unsure, you should seek legal advice.

Scenario 1:

Wonderful Workers Pty Ltd is engaged by an engineering company Big Machinery Pty Ltd (BM) to recruit workers for a number of positions in a project manufacturing and installing equipment in several sugar mills. The workers recruited are engaged both as employees of BM, and independent contractors who are directly contracted to BM, and as a result BM is responsible for paying the workers.

However, as part of Wonderful Workers Pty Ltd’s engagement with BM, Wonderful Workers Pty Ltd is responsible for onboarding and providing accommodation for the workers while they are doing site work. Wonderful Workers Pty Ltd rents a number of houses in the towns local to the installation sites and provides these to the workers when required.

As a result, Wonderful Workers Pty Ltd is a labour hire provider, and will require a labour hire licence.

Scenario 2:

John Smith (a sole trader) trading as Super Staff is engaged by a large resources company, LRC Ltd, to recruit workers for a number of positions in a project doing mineral exploration work. The workers recruited are engaged both as employees of LRC Ltd, and independent contractors who are directly contracted to LRC Ltd, and as a result LRC Ltd is responsible for paying the workers.

However, as part of Mr Smith’s engagement with LRC Ltd, he is responsible for onboarding and providing accommodation for the workers while they are doing mineral exploration work. There are no towns near the exploration site, so Mr Smith engages another company, Amazing Accommodation Pty Ltd, to provide all accommodation to the workers as they have a camp near the exploration site. Amazing Accommodation Pty Ltd provides all accommodation and associated services (such as cleaning) for the workers.

In this example, John Smith trading as Super Staff is a labour hire provider and will require a licence.   This is because he is conducting a business providing a recruitment services to LRC Ltd and procures accommodation for the workers he recruits.  

Scenario 3:

Recruitment Pty Ltd is engaged by a large resources company, LRC Ltd, to recruit workers for a number of positions doing maintenance and upgrade work. The workers recruited are engaged both as employees of LRC Ltd, and independent contractors who are directly contracted to LRC Ltd. Recruitment Pty Ltd is not responsible to pay the workers for any work done for LRC Ltd, as the workers are directly engaged to LRC Ltd. Recruitment Pty Ltd is engaged to do onboarding, but does not provide or procure accommodation.

In this example, Recruitment Pty Ltd is not a labour hire provider, and will not require a labour hire licence. This is because Recruitment Pty Ltd is not obliged to pay the workers and does not provide accommodation for them.