Quick answer: Labour hire businesses in Australia have significant WHS obligations as PCBUs — and so do the host employers who engage them. The shared duty of care between provider and host is the defining feature of WHS compliance in this industry. Key obligations include pre-placement host site assessments, worker competency checks, two-layer inductions, and ongoing consultation and coordination between both PCBUs. This page pulls together the essential resources, guides, and SWMS templates that labour hire businesses need.
Last reviewed: 12 June 2026
Labour hire businesses operate at the intersection of two workplaces and two duty holders — and that intersection is where WHS risk most often falls through the cracks. When a worker is placed at a host site, both the labour hire provider and the host employer carry a primary duty of care under Australian WHS legislation. Neither duty can be contracted away, and both parties remain on the hook if something goes wrong.
Understanding how the shared duty works, how to assess and manage host sites, and how to put the right documentation in place is the foundation of WHS compliance for labour hire businesses. This page is a practical resource hub for labour hire providers. It links to guides, checklists, SWMS templates, and WHS document resources relevant to the labour hire industry across Australia.
Note: WHS laws in Australia are based on the model Work Health and Safety Act 2011, but each state and territory has its own legislation and regulator. Labour hire licensing requirements also vary by jurisdiction. Always check the requirements that apply in the states and territories where your business operates.
The shared WHS duty in labour hire
The most important concept in labour hire WHS compliance is the concurrent PCBU duty. Under the WHS Act, more than one PCBU can owe a duty in relation to the same matter, and each must discharge their duty to the extent it falls within their management or control.
In a labour hire arrangement:
- The labour hire provider is a PCBU because it conducts a business of supplying workers.
- The host employer is a PCBU because it conducts a business at a workplace where the placed worker performs work.
Both duties exist at the same time. Neither PCBU can point to the other as solely responsible. The WHS Act requires both PCBUs to consult, cooperate, and coordinate with each other — not just at the outset of an engagement, but on an ongoing basis throughout the placement.
What the shared duty means in practice
The labour hire provider's duty extends to matters within their management or control, which typically includes:
- Assessing the host site before placing a worker to determine whether risks are adequately managed
- Ensuring the worker has the skills, qualifications, and competencies required for the role
- Providing a company-level induction before the worker commences at the host site
- Establishing clear communication channels with the host employer for ongoing WHS matters
- Monitoring worker welfare after placement and responding to concerns or incidents
The host employer's duty covers matters within their management or control, which typically includes:
- Providing a safe workplace with hazards identified and controlled
- Delivering a site-specific induction to the placed worker
- Ensuring the worker is supervised appropriately for the role and their level of experience
- Including the placed worker in consultation, toolbox talks, and any relevant WHS activities at the workplace
- Reporting incidents and near misses to the labour hire provider in a timely way
For a plain-language explanation of how PCBU duties work and overlap, see WHS Duty Holders Explained.
Assessing host sites before placement
Pre-placement host site assessment is one of the most important — and most commonly overlooked — obligations for labour hire providers. Placing a worker at a site without understanding the risks of that site is not a defensible position under the WHS Act.
A pre-placement host site assessment should cover:
- The nature of the work the placed worker will perform, including any physical demands, equipment operated, or chemicals handled
- The specific hazards present at the workplace — including physical, ergonomic, chemical, and psychosocial hazards
- The controls the host employer has in place to manage those hazards, and whether those controls are adequate
- The level of supervision the host employer will provide, and whether that supervision is appropriate for the worker's experience level
- Emergency response procedures at the host site
- The host employer's WHS management systems, including whether they have a WHS policy, induction process, incident reporting system, and SWMS for relevant activities
The assessment should be documented and retained on file. It should be reviewed and updated whenever there is a significant change at the host workplace — including changes to the nature of the work, the physical environment, supervision arrangements, or following a workplace incident.
For a practical tool to support this process, see the New Worker Induction Checklist.
Worker competency and pre-placement checks
A labour hire provider must ensure that each worker placed is competent to perform the work safely. This is not simply a matter of holding the right qualifications on paper — it means verifying that the worker's skills match the demands and hazards of the specific role and host site.
Pre-placement competency checks for labour hire workers should include:
- Verification of qualifications and licences — confirm that all required tickets, certifications, and licences are current and appropriate for the role (for example, a white card for construction placements, forklift licence for warehousing, or relevant trade qualification)
- Work history and experience review — understand the worker's prior experience, particularly where the placement involves significant physical demands, operating plant, or exposure to hazardous substances
- Health and fitness assessment — for physically demanding roles, confirm that any relevant pre-employment health assessment requirements are met
- Induction readiness — ensure the worker is ready to complete the host-site induction and understands their obligation to follow host site safety rules
Maintaining a training and competency register for each worker is essential. Records should be updated whenever a worker completes new training, a licence is renewed, or a competency is reassessed.
Inductions for labour hire workers
Labour hire workers require two distinct layers of induction before commencing at a host site.
Company induction (labour hire provider)
The labour hire provider is responsible for delivering a company-level induction to each worker. This induction should cover:
- The provider's WHS policy and the worker's rights and responsibilities
- How to report a hazard, incident, or near miss, including who to contact at the provider
- The worker's right to cease unsafe work
- The provider's consultation and communication arrangements
- Workers compensation and injury management — who to contact if the worker is injured
- The placement process and what to expect at the host site
Company inductions should be documented and signed by each worker. Records should be retained throughout the employment relationship and for the required period after it ends.
Site-specific induction (host employer)
The host employer is responsible for providing a site-specific induction before the placed worker commences work. The labour hire provider should confirm that this induction has been completed and documented before treating the placement as fully operational.
Site-specific inductions must cover:
- Emergency procedures for the specific workplace, including evacuation routes and assembly points
- The specific hazards present at the workplace and the controls in place to manage them
- Site rules — including PPE requirements, restricted areas, and any drug and alcohol policies
- The reporting process for incidents, near misses, and hazards at that site
- Supervision arrangements and who the placed worker reports to at the host site
For detailed guidance on induction obligations, see Site Inductions Requirements.
Consultation, cooperation, and coordination
The WHS Act does not simply require each PCBU to discharge their duty in isolation. It requires duty holders who share responsibility for the same matter to consult, cooperate, and coordinate with each other.
For labour hire, this means:
- At the outset of a placement: the provider and host employer should agree in writing on how WHS will be managed — including the scope of each party's responsibilities, how hazard information will be shared, and how incidents will be reported
- During the placement: the provider should maintain regular contact with both the worker and the host employer to monitor welfare and address emerging issues
- After an incident: both PCBUs must cooperate in incident investigation, notifiable incident reporting, and any return-to-work process
A service agreement or placement agreement that clearly sets out each party's WHS responsibilities is a practical tool for formalising consultation and coordination arrangements. These agreements should be reviewed and updated for each significant placement or change in work arrangements.
For detailed guidance on consultation obligations, see WHS Consultation Requirements.
Labour hire licensing in Australia
In addition to WHS obligations, labour hire providers in several jurisdictions must hold a valid licence before supplying workers to a host employer. The key licensing schemes currently in place are:
| Jurisdiction | Scheme | Authority |
|---|---|---|
| Queensland | Labour Hire Licensing Act 2017 (Qld) | Queensland Labour Hire Authority (LHA) |
| Victoria | Labour Hire Licensing Act 2018 (Vic) | Consumer Affairs Victoria |
| South Australia | Labour Hire Licensing Act 2017 (SA) | Commissioner for Consumer Affairs SA |
| Australian Capital Territory | Labour Hire Licensing Act 2020 (ACT) | ACT Government |
In each of these jurisdictions, it is an offence to provide labour hire services without a valid licence. It is also an offence for a host employer to engage an unlicensed provider. Penalties for non-compliance can be significant.
If your business supplies workers in any of these jurisdictions, confirm your licensing obligations with the relevant authority before commencing operations. National labour hire businesses must comply with the requirements in each state or territory where they operate.
SWMS requirements for labour hire businesses
When does a labour hire placement require a SWMS?
The requirement for a Safe Work Method Statement (SWMS) attaches to the specific work activity — not to the employment arrangement. If a placed worker will perform high risk construction work (HRCW) at a host site, a SWMS must be in place before that work commences, regardless of whether the worker is directly employed by the host or supplied by a labour hire provider.
In practice, SWMS obligations are usually managed by the host employer as the PCBU who controls the workplace and the work. However, a labour hire provider should:
- Confirm that a SWMS is in place for any HRCW the worker will perform before placement commences
- Ensure the worker has read, understood, and signed the relevant SWMS prior to commencing work
- Retain evidence that SWMS compliance has been confirmed as part of the pre-placement process
Common SWMS for labour hire placements
The specific SWMS required depend on the nature of the placement. The table below lists the SWMS most commonly relevant to labour hire work placements.
| SWMS | When needed |
|---|---|
| Manual Handling SWMS | Placements involving lifting, carrying, pushing, pulling, or repetitive physical tasks — warehousing, manufacturing, logistics |
| General Work Site Practices SWMS | Placements on active worksites where the worker is exposed to general site hazards |
| Working at Heights SWMS | Placements involving work above 2 metres, including construction, maintenance, and logistics roles |
| Forklift Operation SWMS | Placements where the worker will operate a forklift or other powered industrial vehicle |
| Excavation and Trenching SWMS | Placements on civil or construction sites involving earthworks |
| Mobile Plant SWMS | Placements where the worker will operate excavators, skid steers, or other mobile plant |
| Confined Space Entry SWMS | Placements in manufacturing, utilities, or civil construction where confined space entry is required |
For host-site SWMS specific to a particular industry or trade activity, the host employer's WHS management system should be the primary source. Labour hire providers should confirm that host-site SWMS are current, site-specific, and signed off by the placed worker before work commences.
WHS documents a labour hire business needs
| Document | Purpose | When required |
|---|---|---|
| WHS Policy | Sets out the provider's commitment to health and safety and the responsibilities of each party | Any business with workers; expected by host employers and insurers |
| Host Site Risk Assessment | Documents the pre-placement assessment of each host workplace | Before any worker is placed at a new or changed host site |
| Company Induction Record | Evidence that each worker has completed the provider's company induction | Before the worker commences at any host site |
| Training and Competency Register | Records qualifications, licences, and competency assessments for each worker | Ongoing; updated when licences are renewed or new training is completed |
| Host Employer Register | Documents each host workplace, contact details, and risk assessment outcomes | Maintained for all active and recent placements |
| SWMS (relevant to placements made) | Identifies work activities, hazards, and controls for high risk placements | Before commencing placements involving HRCW or other high-risk activities |
| Incident and Injury Register | Records incidents, near misses, injuries, and illnesses involving placed workers | Ongoing; notifiable incidents must be reported to the WHS regulator |
| Consultation and Coordination Procedure | Sets out how the provider communicates with host employers on WHS matters | To be established before commencing labour hire operations |
| Service / Placement Agreement | Formalises WHS responsibilities between the provider and each host employer | Recommended for all placements; essential for complex or ongoing arrangements |
| Emergency Plan | Sets out emergency response procedures for the provider's own workplace | Required for the provider's business premises |
For a comprehensive guide to WHS documentation for labour hire businesses, see WHS Documents for Labour Hire Businesses.
Useful guides for labour hire businesses
The following guides cover the WHS topics most relevant to labour hire providers and host employers.
- WHS Documents for Labour Hire Businesses — Full guide to WHS documentation for labour hire providers
- WHS Duty Holders Explained — Plain-language explanation of PCBU duties and how they overlap in labour hire arrangements
- WHS Consultation Requirements — What consultation, cooperation, and coordination between PCBUs involves
- Site Inductions Requirements — Induction obligations for labour hire workers and host employers
- New Worker Induction Checklist — Practical checklist for onboarding placed workers safely
SWMS templates for labour hire businesses
Blue Safe Online provides SWMS templates for the work activities most commonly encountered in labour hire placements. Templates are professionally prepared, editable, and ready to customise to the specific placement, host site, and work methods involved.
Browse the full range of SWMS at Blue Safe Online.
Frequently asked questions
Who is responsible for the health and safety of a labour hire worker — the provider or the host employer?
Both. A labour hire provider and a host employer are each a person conducting a business or undertaking (PCBU) under Australian WHS legislation, and both owe a primary duty of care to the placed worker. The provider's duty includes assessing the host site before placement, ensuring the worker is competent for the role, and monitoring ongoing welfare. The host employer's duty applies because the worker performs work at their workplace and under their direction and control. The two duties run concurrently — one does not extinguish the other. Both PCBUs must consult, cooperate, and coordinate with each other so that nothing falls through the gap between their respective obligations.
What is a labour hire licensing scheme and does my business need a licence?
Labour hire licensing schemes require businesses that supply workers to a host employer to hold a valid licence before providing that service. Licences are currently required in Queensland, Victoria, South Australia, and the Australian Capital Territory. In those jurisdictions it is an offence to provide labour hire services without a licence, and host employers commit an offence by engaging an unlicensed provider. Requirements and application processes vary by state, so check with the relevant licensing authority: the Queensland Labour Hire Authority, Consumer Affairs Victoria, the Commissioner for Consumer Affairs South Australia, or the ACT Government.
What WHS documents does a labour hire business need?
A labour hire provider needs a WHS policy, a worker placement and pre-placement risk assessment process, induction records for each worker (both company induction and host-site induction), training and competency records, a register of host workplaces with risk assessment outcomes, SWMS relevant to the types of work placements the business makes, an incident and injury register, a consultation and coordination procedure covering how the provider communicates with host employers, and a system for monitoring worker welfare after placement. The specific SWMS required depend on the nature of the placement — workers placed in manual-handling roles will need different documents to workers placed in clerical or supervisory roles.
Does a labour hire worker need to complete an induction before starting at a host site?
Yes. Labour hire workers must receive two layers of induction before commencing work. The first is a company induction from the labour hire provider covering the provider's WHS policies, emergency contacts, incident reporting procedures, and the worker's rights and responsibilities. The second is a site-specific induction from the host employer covering the particular hazards, emergency procedures, site rules, and controls at the placement workplace. Both inductions should be documented and records retained by both parties. Workers should not commence work at a host site until both inductions are complete and signed off.
Get your WHS documents sorted
Blue Safe Online provides SWMS templates and WHS management systems for Australian labour hire businesses. Whether you are setting up your provider operations for the first time, formalising your pre-placement assessment process, or updating outdated documents, Blue Safe Online gives you access to professionally prepared, ready-to-customise WHS documents for the labour hire industry.
Browse SWMS and WHS documents for labour hire businesses on Blue Safe Online
This page provides general information only and does not constitute legal advice. WHS requirements may vary by state or territory, industry sector, the nature of the placement, and your role in the labour hire arrangement. Labour hire licensing requirements also vary by jurisdiction. Consult the relevant WHS regulator, licensing authority, or a qualified WHS professional for advice specific to your circumstances.