Managing your labour contracting
It makes business sense to check that your contractors and any subcontractors in the supply chain comply with workplace laws.
Where do I start?
When you are looking to contract out labour, it’s a good idea to make sure you understand the cost of employment. Your contractor/subcontractor will need to pay their employees correctly as well as cover employment costs (like superannuation, workers' compensation, payroll tax, insurance and licenses). If you understand these costs, it'll help you make sure the contracted price isn't too low.
You should also check any state requirements as some states have laws preventing you from using labour hire providers who don’t have a license. Read about state Labour hire licensing laws in our Library to find out if they apply to you.
Follow our 5 steps to effectively engage a new contractor
The steps are:
- Know the pay and conditions that apply.
- Ask potential contractors about their workplace practices.
- Check the contract price to make sure it's enough to cover wages.
- Set clear expectations.
- Make sure you know of subcontracting arrangements.
We've developed resources to help you do this:
Review your existing contracts
Things change over time. You can follow these 3 steps to check whether there are any issues in your contracting network:
- Map your existing contracts.
- Examine compliance with workplace laws.
- Act on any problems you find.
Read our Guide to monitoring your labour contracting (DOCX 1.8MB) (PDF 1.5MB) for help on mapping existing contractors and subcontractors, checking compliance and addressing any problems
Regular self-audits can help. You (and your contractors) can use our Guide to self-auditing your business (DOCX 112.1KB) (PDF 900.8KB) to check you're complying with workplace laws.
What we do
We work with businesses, associations and government to help them get it right when it comes to contracting labour and supply chains.
What to do next
- Use our Pay Calculator to find minimum pay rates including penalties and overtime.
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