Labour hire is when workers of a labour hire recruitment agency work for a client company, generally for short periods of time. A Labour hire recruiter employs labour hire workers as casuals or as independent contractors as sole directorships operating under a contact for service.
Labour Hire firms assume the role of the employer. As you will be receiving payments for your employees from the company you are hiring out the employees or contractors to, you need to ensure that you have in place appropriate insurances. You are leasing staff to your clients where they are under the control of the client, but remain legally employed and paid by you as the Labour Hire company provider.
Business Insurance Specialists has experience in and is able to provide competitive terms for Labour Hire insurance.
Labour Hire firms allows business, agencies and Labour Hire employees to work together. Depending on the job required, a business can increase or decrease their numbers to fit the volume of work that is requiring to be done. As an example, often in a construction stage of a project many employees are required, but as the project converts to operational, the number required decreases.
The types of industries where we see Labour Hire being commonplace include:
As the employer, the labour hire provider is responsible for all the workers’ wages and related costs, and all other responsibilities associated with employment. Particularly vital is the responsibility of ensuring a safe working environment. Workers are often referred to as ‘indirect employees’ of the labour hire provider.
Labour hire is the most flexible temporary staffing option. It amounts to the provision of a ready, outsourced workforce that can be available to clients at short notice and deployed for periods ranging from one day to weeks or months.
Temporary placement involves the outsourced hire of staff for non-permanent positions. It is unlike labour hire in that the placed worker becomes an employee of the client. Generally speaking, a significant proportion of temporary placements tend to be in white-collar jobs.
The temporary placement segment is dwarfed by the labour hire segment.
We are also aware of the risks faced by Host Employers and the obtaining of competitive insurance whilst workers are engaged. As an experience insurance broker, we are happy to discuss these risks. We suggest that the contracts be closely reviewed.
Examples of exposures arising from a recruitment firm providing Labour Hire employees, in addition to the standard recruitment company exposures include
The nature of the work determines the level of risk involved.
The main insurances to consider for Labour Hire firms are
For a competitive quotation for your Labour Hire insurance, contact Business Insurance Specialists. We have an experienced team that can help you.