Construction Labour Hire: How It Works & What to Check
Construction labour hire means a provider employs workers and places them with your site for a set period, while you direct the daily work. The provider pays wages and super, and you share responsibility for site safety. NSW has no labour hire licensing scheme, but Victoria, Queensland, South Australia and the ACT do.
This guide, which builds on our what is labour hire explainer, shows how to hire construction labour step by step, what to check and what to avoid.
Construction labour hire: how it works on site
Each party has a clear job.
| Party | What they do | What to check |
|---|---|---|
| Labour hire provider | Employs the worker, pays wages, super and insurance, and supplies the person | Award rates, payslips, workers insurance and licence in states that require one |
| Host employer | Directs daily work, runs the site induction and controls the work area | Site safety, supervision and signed timesheets |
| Worker | Performs the work under the host's direction and follows site rules | White card, licences, tickets and the right to a safe site |
| Principal contractor | Manages the whole construction site and its safety systems | Induction, permits and site rules |
| Subcontractor | Runs its own workers under its own contract | Whether the arrangement is true subcontracting or labour supply |
| Regulator | SafeWork NSW oversees safety on NSW sites | Notifications, inspections and codes of practice |
Construction labour hire for host employers: shared safety duties
Under the Work Health and Safety Act 2011 (NSW), host and provider both have duties.
- Run a site induction on the first day, covering hazards, emergency plans, reporting lines and the site rules the worker must follow.
- Confirm that the worker holds a white card, which is needed for construction work in NSW, including labourers and supervisors.
- Check any licence or ticket that the task needs, such as for a forklift or a crane, before the worker starts that task.
- Agree with the provider who supplies protective equipment, who supervises, and who reports incidents to SafeWork NSW.
- Manage psychosocial hazards such as bullying, high job demands and poor support, following the SafeWork NSW code of practice.
- Treat the labour hire worker the same as your own staff when it comes to safety briefings, toolbox talks and consultation.
How to hire construction labour hire workers
Follow these six steps in order.
Define the role
- Write down the tasks, the site, the start date, the expected length of the job and any tickets the work needs.
Check the provider
- Ask for proof of workers insurance, public liability cover and award compliance, plus a licence if the provider operates in Victoria, Queensland, South Australia or the ACT.
Agree the terms in writing
- Set out the hourly charge, the minimum engagement, the notice to end the placement and who signs off timesheets.
Screen the worker
- Confirm identity, right to work, white card and relevant tickets, and arrange a police check only with the worker's written consent.
Induct and supervise
- Run your site induction on day one and assign a named supervisor who can answer questions during the first week.
Review and adjust
- Check timesheets against hours worked, give feedback early, and tell the provider promptly about any safety or performance concern.
Construction labour hire licensing by state
Licensing differs by state, so check where the work happens, not where the provider is based. Our labour hire licence in Australia guide covers the schemes in more detail.
| Jurisdiction | Licensing position | What to do |
|---|---|---|
| NSW | No labour hire licensing scheme, and the state is working with others on a nationally consistent approach | Check insurance, references and award compliance yourself |
| Victoria | Licensing scheme, with expanded fit and proper person and financial viability rules from 1 June 2026 | Ask for the licence number and check it |
| Queensland | Licensing scheme | Ask for the licence and verify it |
| South Australia | Licensing scheme, with newly covered providers needing a licence by 29 July 2026 | Ask for the licence and verify it |
| ACT | Licensing scheme | Ask for the licence and verify it |
| Other states | Rules differ, so check with the state regulator | Confirm before signing |
Construction labour hire pay, costs and compliance
The charge is more than the worker's hourly wage, so ask how it is built.
- Expect the hourly charge to cover wages at the award or agreement rate, super at 12% of ordinary time earnings and workers insurance.
- Expect a margin for the provider's administration, recruitment and compliance work (indicative — get quotes from more than one provider).
- Ask whether the provider pays NSW payroll tax, which is 5.45% of NSW taxable wages above the $1,200,000 annual threshold for 2026-27.
- Remember that a Fair Work Commission regulated labour hire arrangement order, in general terms, may require the same pay for the same job.
- Check that casual workers receive the 25% loading and that timesheets are signed off by your supervisor each week.
- Keep copies of invoices and signed timesheets, because you may need them if a pay or safety question comes up.
Construction labour hire checklist before day one
Use this as a starting point and adapt it for your own site.
- Confirm the worker's white card, and ask for a duplicate if the card is lost, which costs $43 in 2026-27.
- Check the completion statement if the worker is still waiting for a card, because it is valid for 60 days.
- Confirm any licence, ticket or high-risk work licence needed for the task before the worker starts it.
- Arrange a police check where relevant to the role, using the worker's written consent and the check that suits the job.
- Book the induction, supply the site map, emergency plan and contact list, and name the person who will supervise.
- Confirm start time, hours, break arrangements and who signs the timesheet, so the first pay run is accurate.
Common mistakes to avoid
- Assuming the provider carries all safety responsibility, when a host employer still has duties for the site and the work.
- Letting a worker start without a white card or the right ticket, which exposes both the worker and the business.
- Treating the workers as contractors to save costs, which can be illegal if the real arrangement is employment.
- Skipping the written terms and finding out later who pays for overtime, travel or a late finish.
- Choosing the cheapest provider without asking about insurance, award rates and super, and then facing the shortfall later.
Construction labour hire FAQ
Is construction labour hire legal in NSW?
Yes. NSW has no labour hire licensing scheme, so any provider can supply workers, but all workplace laws still apply. You should check award compliance, insurance and references before you sign. Victoria, Queensland, South Australia and the ACT do require a licence.
Who is the employer of a labour hire worker?
The labour hire provider is the employer and pays wages, super and insurance. You, as the host, direct the daily work and share responsibility for safety on site. Both parties have duties under the Work Health and Safety Act 2011 (NSW), so agree roles in writing.
Do labour hire workers need a white card?
Yes, for construction work in NSW. The card has no expiry date, but it is cancelled if the holder does no construction work for 2 years. A completion statement from the training provider is valid for 60 days while the card is processed, and a duplicate costs $43 in 2026-27.
How much does construction labour hire cost?
The cost depends on the role, the award, the length of the job and the provider's margin. It covers wages, super and insurance plus a service charge (indicative — get quotes). Ask each provider for a written breakdown so you can compare like with like.
Getting construction labour hire right
This is general information, not legal, tax or financial advice, so check the Fair Work Ombudsman, SafeWork NSW, the ATO or an employment lawyer for your situation. For more on related checks, see our white card in NSW and police check in NSW guides.
If you need construction labour, we supply screened and inducted workers across Sydney. Visit our host employer labour hire page to talk to us.