Meaning of labour hire services
7 Meaning of labour hire services
Subject to subsection (2), a person provides labour hire services if—
in the course of conducting a business the person supplies, to another person (the host), an individual to undertake work;
and
the individual is a labour hire worker for the person.
A person does not provide labour hire services under subsection (1) in the following circumstances:
where an individual is supplied to a host to undertake work that is not undertaken as part of a business or commercial undertaking of the host;
where an individual is supplied to a host to undertake work by a body corporate that has not more than 2 directors and the individual is a director or senior manager of the body corporate and is the only individual who is supplied by the body corporate to undertake work for another person;
where an individual is supplied to a host to undertake work by a business carried on by a partnership comprised of no more than 2 persons and of which the individual is a partner;
where an individual is supplied to a host to undertake work by a business carried on by the individual operating as a sole trader;
where an individual is supplied to a host to undertake work for which the annual wages for the individual are equal to or more than the amount of the high income threshold within the meaning of the
Fair Work Act 2009 of the Commonwealth and the individual's employment is not subject to or covered by a modern award or enterprise agreement under that Act;
any other circumstances prescribed by the regulations.
For the purposes of subsection (1), a person may provide labour hire services to a host regardless of whether—
a worker supplied by the person is supplied to the host directly or indirectly through 1 or more agents or intermediaries; or
the work performed is under the control of the person or the host;
or
an individual supplied by the person to undertake work is an employee of the person; or
a contract is entered into between the worker and the person, or between the person and the host.
Examples1 A has a labour hire business and has an arrangement with B under which A may supply B to other persons to undertake work for which B will be paid by A. In the course of conducting the business, A agrees with C to supply an individual to undertake meat processing work for C at C's meat processing business. A sends
B to C to undertake the work for which A will pay B. A provides labour hire services in supplying B to C.2 A runs a horticultural processing business and employs B to undertake work in the business. In the course of conducting the business,
A enters into a contract with C to pick the grapes at
C's commercial winery. As part of employment in A's business,
B attends at C's winery and picks the grapes. A does not provide labour hire services to C because A is not supplying an individual to undertake work (see section 9) and B is not a labour hire worker for A (see section 8). At a neighbouring winery, D wants to pick their grapes but does not want to contract out the job, preferring to undertake the work themselves. Needing a worker and having seen A's business working at
C's winery, D asks if A would be able to send an individual to work for D at D's winery for 2 days.
A asks B if B would agree to be sent to undertake work for another person but be paid by A, to which B agrees.
A sends B to work for D at D's winery for the
2 days but B also continues to work 4 regular shifts per week in A's horticultural services business. A does not provide labour hire services to D because, despite the new arrangement between
A and B and the supply of B to undertake work for D, B is an in‑house employee of A and therefore not a labour hire worker for A (see section 8).
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