Recruitment & Labour Hire in Perth

How Labour Hire Works in Western Australia: A Step-by-Step Guide

Employer Guide | Perth & Western Australia

Labour hire gives Western Australian businesses a flexible way to add workforce capacity for short-term, project-based or longer-term requirements. This guide explains how the arrangement works from the first role brief through to payroll, assignment management and the choice between labour hire and permanent recruitment.

What Is Labour Hire?

Under a labour hire arrangement, the labour hire provider employs the worker and supplies them to a client for an agreed assignment. The client, often referred to as the host employer, manages the worker’s day-to-day activities while the labour hire provider manages the employment relationship.

This structure can give businesses additional workforce flexibility without employing every temporary or project worker directly. The worker performs their role within the host business, while the labour hire provider manages employment-related administration such as payroll and other agreed employment obligations.

The exact responsibilities of the labour hire provider and host employer should be clearly understood before an assignment begins, particularly in relation to site requirements, supervision, safety and communication.

Why WA Businesses Use Labour Hire

Labour hire can be useful where workforce requirements change with projects, seasonal demand, shutdowns, temporary absences or changing operational workloads.

·        Short-term workforce requirements where additional workers are needed for a defined period.

·        Project-based staffing where workforce numbers may change as the project progresses.

·        Shutdown and maintenance work requiring additional trades and support personnel.

·        Temporary gaps caused by leave, vacancies or unexpected changes in workforce availability.

·        Longer-term assignments where a business wants flexibility without immediately creating a permanent position.

·        Temp-to-permanent arrangements where both the employer and worker have an opportunity to assess the fit before direct employment is considered.

Step 1 – Define the Role & Workforce Requirement

Before contacting a labour hire provider, define the assignment as clearly as possible. A good role brief makes it easier to identify candidates whose experience and availability match the requirement.

·        Position title and key duties

·        Required skills and experience

·        Relevant licences, tickets or qualifications

·        Work location

·        Expected commencement date

·        Days, hours or roster

·        Expected assignment duration

·        Any site-specific or mobilisation requirements

A two-week project requirement may need a different recruitment approach from a six-month assignment, even when the job title is the same. Clear information at the beginning helps establish realistic recruitment expectations.

Step 2 – Choose the Right Labour Hire Provider

Labour hire providers differ in the industries, roles and workforce types they recruit. Choosing a provider with relevant experience can make it easier to communicate the practical requirements of the assignment.

Aurora Resourcing & Talent recruits across Blue Collar, White Collar, IT and Professional Services and supports employers across Perth and Western Australia. For businesses with trade, construction, mining, maintenance or project requirements, our Blue Collar recruitment capability can support both labour hire and permanent recruitment needs.

Learn more about Aurora’s Blue Collar Recruitment & Labour Hire services.

Step 3 – Discuss the Assignment Requirements

Once a provider has been selected, the next step is to discuss the assignment in detail. This conversation should confirm the number of workers required, timing, experience, work location, expected duration and any specific conditions relevant to the role.

It is also an opportunity to ask how candidates are sourced and screened, what information the provider requires from the host business, how changes to an assignment are managed and what communication will occur during the placement.

Where a role may later become permanent, it is worth discussing that possibility at the beginning so the most suitable recruitment approach can be considered.

Step 4 – Understand the Labour Hire Charge Rate

A labour hire charge rate is more than the worker’s hourly pay rate. It reflects the agreed cost of supplying and employing the worker for the assignment.

Depending on the arrangement, the charge rate may incorporate the worker’s pay together with applicable employment-related costs and the labour hire provider’s recruitment, payroll and administrative services.

Employers should ask for a clear explanation of what is included in the agreed rate and whether any additional costs may apply. Comparing providers solely on the lowest hourly rate can overlook differences in recruitment effort, candidate screening, service and ongoing support.

Step 5 – Recruitment & Candidate Screening

Once the assignment is confirmed, the labour hire provider can begin identifying suitable candidates. This may include candidates already registered with the agency as well as people sourced through advertising, networks and targeted recruitment activity.

Depending on the role and client requirements, screening may include:

·        Candidate interviews

·        Review of employment history and relevant experience

·        Reference checks

·        Verification of relevant licences or tickets

·        Work rights checks where required

·        Confirmation of availability and assignment requirements

Additional role, client or site-specific requirements may also apply. For specialised trades, mining, shutdown or construction roles, employers should allow appropriate lead time for sourcing and screening.

Step 6 – The Worker Commences the Assignment

Once a suitable worker accepts the assignment and relevant requirements have been completed, the worker begins work with the host business for the agreed period.

The host employer manages the worker’s day-to-day activities and workplace requirements, while the labour hire provider remains responsible for the employment relationship. Clear communication between the worker, host employer and provider is important throughout the assignment.

If requirements change, the assignment may be extended, shortened or reviewed depending on the agreed terms and circumstances.

Step 7 – Timesheets, Payroll & Assignment Management

During the assignment, the labour hire provider manages payroll and agreed employment administration for the worker. Timesheets or other approved time records are typically used to confirm hours worked and support payroll and client invoicing.

The host employer should communicate any changes to hours, duties, assignment duration or worker availability as early as possible so the placement can be managed appropriately.

Ongoing communication also gives both parties an opportunity to address issues promptly and confirm whether the assignment remains suitable.

Labour Hire vs Permanent Recruitment

Labour hire and permanent recruitment solve different workforce problems, and many businesses use both.

 Labour Hire

 Worker is employed by the labour hire provider and supplied to the host business for an agreed assignment.

 Projects, temporary requirements, shutdowns, flexible workforce needs.

 Permanent Recruitment

 Recruitment provider sources and assesses candidates; the successful candidate is employed directly by the client.

 Ongoing positions that form part of the permanent workforce.

When Temp-to-Permanent May Be Appropriate

A temp-to-permanent arrangement sits between labour hire and direct permanent recruitment. The worker initially joins the business through labour hire, with the possibility of moving to direct employment later if both parties agree.

This approach can be useful where an employer expects a position may become ongoing but wants an initial period to assess the role, workload and suitability of the arrangement before making a permanent appointment.

Industries Using Labour Hire in Western Australia

Labour hire is used across many Western Australian industries where workforce requirements change with projects, operations and demand.

·        Mining & Resources

·        Construction

·        Engineering

·        Maintenance

·        Civil

·        Industrial

·        Transport

·        Blue Collar trades and labour

·        White Collar and project support

·        IT and specialist project roles

The recruitment approach should be matched to the individual role and industry rather than assuming the same labour hire process will suit every assignment.

How to Get Started With Labour Hire in WA

The first step is to prepare a clear description of the workforce requirement and discuss it with a provider that recruits within the relevant market.

Before confirming an assignment, ask about candidate availability, screening, charge rates, expected recruitment timeframes, assignment administration and what information the provider requires from your business.

For a broader overview, read Aurora’s Practical Guide to Labour Hire in Perth.

Frequently Asked Questions

Who employs the worker in a labour hire arrangement?

The labour hire provider employs the worker and supplies them to the host business for the agreed assignment. The host business generally manages day-to-day work activities while the provider manages the employment relationship.

What is the difference between labour hire and permanent recruitment?

With labour hire, the provider employs the worker for the assignment. With permanent recruitment, the recruitment agency sources and assesses candidates, but the successful candidate is employed directly by the client.

What does a labour hire charge rate include?

The agreed charge rate reflects the cost of supplying and employing the worker and may incorporate the worker’s pay, applicable employment-related costs and the provider’s recruitment, payroll and administrative services. Employers should confirm exactly what is included before commencing an assignment.

How quickly can a labour hire worker start?

Timeframes depend on the role, location, required experience, candidate availability and any screening, ticket or site requirements. General roles may be filled more quickly than highly specialised positions, so employers should discuss realistic timeframes with the provider.

Can labour hire become permanent employment?

Yes. Some labour hire assignments can transition into direct employment where the client and worker both want to continue the relationship and the agreed terms allow for that arrangement.

Labour Hire & Recruitment with Aurora

Aurora Resourcing & Talent provides labour hire and permanent recruitment solutions to employers across Perth and Western Australia, covering Blue Collar, White Collar, IT and Professional Services.

Whether you need one worker for a short assignment, additional personnel for a project or shutdown, or support filling an ongoing position, our team can work with you to understand the role and the most appropriate recruitment approach.

To discuss your workforce requirements, contact Aurora Resourcing & Talent.