From 15 December 2023, employees, unions and host employers can apply to the Fair Work Commission for a regulated labour hire arrangement order. When such an order is in effect, employers will be required to pay labour hire employees the same as employees who are employed directly by the host employer.
Under an order, they must be paid at least what they would receive under a host employer’s enterprise agreement, a workplace determination, an equivalent public sector determination and other prescribed instruments made under Commonwealth, State and Territory Laws. Any orders made by the Fair Work Commission under these rules won’t come into effect before 1 November 2024.
The Fair Work Commission can’t make an order if it’s not fair and reasonable. A number of exclusions may also apply, for example to host employers who are a small business employer. The Fair Work Commission can hear disputes about an order that can’t be resolved within the workplace.
Are you compliant?
Employers and employees should educate themselves on the new Closing Loopholes workplace laws and make sure they are compliant. Most changes started on 15 December 2023, while others start between now and 2025.