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Labour hire is a form of employment in which an employer directs their de jure employees ("labour hire employees", or "agency workers") to perform work at an external workplace, belonging to a client of the legal employer. [1] [2] A labour-hire agency employs workers who are then "on-hired" to perform labour for a second party organisation.
Agency worker law refers to a body of law which regulates the conduct of employment agencies and the labour law rights of people who get jobs through them. The typical situation involves the person going to an employment agency and then the employment agency sending the person to an actual employer for proper work.
The first known private employment agency Robinson, Gabbitas & Thring, was founded in 1873 by John Gabbitas who recruited schoolmasters for public schools in England. [3] In the United States, the first private employment agency was opened by Fred Winslow who started an Engineering Agency in 1893.
Labour brokers are different from recruitment agencies in that labour brokers handle almost all aspects of the worker's employment (including interviews, recruitment, HR, admin, payroll, transport, etc.), whereas recruitment agencies are only responsible for sourcing candidates for employment.
Labour hire arrangements are situations in which an employee has a legal employer, but no direct employment contract with the place of work. [3] Companies that provide labour hire are often referred to as 'recruitment agencies' however, labour hire arrangements do not involve an agency relationship with an employee or the worksite in a legal ...
Rather, the contents of a contract may instead indicate the relationship. The High Court found the worker at the centre of the dispute between the parties was an employee of the labour hire agency for whom he had worked, rather than an independent contractor. The judgment means worker relationships will be defined by the terms of their contract.
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