Enterprise agreements are a central feature of workplace relations in Australia, but they interact with labour hire in ways that confuse many host employers. The short version: your enterprise agreement does not directly cover labour hire workers on your site. The labour hire provider is the employer of record, and their own EA — or the relevant modern award — governs those workers’ terms. But “directly” is doing a lot of work in that sentence, because the Same Job Same Pay framework now creates a functional link between your EA and what labour hire workers on your site get paid.
If your site operates under an enterprise agreement and you use labour hire, you need to understand how EA coverage works, what your provider needs from you to stay compliant, and what you should be building into your labour hire contracts right now. Getting this wrong creates pricing surprises, underpayment risk for your provider, and — if a Fair Work Commission order applies — potential liability flowing back to you as the host.
Programmed’s managed skilled workforce service is built to handle the complexity of EA-adjacent labour hire, including pay comparison calculations, agreement tracking, and proactive cost modelling when your EA is renegotiated. Learn how the managed skilled workforce model works.
Key takeaways
- Labour hire workers are employed by the provider, not the host — the host’s EA does not automatically apply to them, but Same Job Same Pay now requires providers to match the EA rate for equivalent work where an FWC order is in force.
- Providers need access to your current EA to run pay comparisons — share it proactively and build variation-notification obligations into your contracts.
- Major project and greenfields agreements create specific pricing dynamics for labour hire that need to be modelled at contract stage, not discovered mid-project.
How enterprise agreements interact with labour hire employment
An enterprise agreement is made between an employer and its employees (or a union on their behalf). It binds that employer and those employees. A labour hire provider is a separate legal entity employing its own workers — so the host’s EA has no direct legal reach over those workers or the provider.
In practice, this means labour hire workers on your site are paid under one of two instruments: the provider’s own enterprise agreement (if the provider has one that covers the relevant classification and work type), or the applicable modern award. Many larger labour hire providers do operate their own EAs, often structured to cover the industries and classifications they commonly service. Smaller operators will typically rely on the award as the minimum.
Before Same Job Same Pay, this created a gap. A host employer might have an EA paying significantly above award for a classification, while labour hire workers doing the same work beside direct employees received only award rates. That gap is now regulated.
Same Job Same Pay and the EA pay floor
The Closing Loopholes Act introduced a mechanism allowing unions (and, in some cases, labour hire workers) to apply to the Fair Work Commission for a labour hire order. Where an order is granted, it requires the provider to pay the labour hire worker no less than what the host’s enterprise agreement (or other applicable instrument) would pay for performing the same work.
This does not mean the host’s EA now applies to labour hire workers — it doesn’t. The provider is still the employer, and the EA the provider operates under (or the award) still governs the employment relationship. But the host’s EA now sets a pay floor for what the provider must pay when a valid order is in place. The provider must:
- Obtain a copy of the host’s EA and any applicable instruments.
- Calculate the comparison rate for the relevant classification and work type.
- Ensure the labour hire worker receives at least that comparison rate.
- Update worker pay when the host’s EA is varied or replaced.
For more detail on how Same Job Same Pay works and which situations it applies to, see our article on Same Job Same Pay and labour hire.
What this means for your provider operationally
The operational burden falls primarily on the provider, but the host’s cooperation is essential. A provider cannot run a pay comparison without access to your EA. If your EA is varied or a new agreement is certified, the provider needs to know promptly — not at the next quarterly review meeting.
Hosts should treat EA information as a routine operational disclosure to their labour hire provider, not a document to be shared reluctantly under request. Late disclosure creates a window where workers may be underpaid the comparison rate, and that risk sits with the provider. But the host’s contract structure drives whether the provider gets timely notice.
Build these obligations into your labour hire contracts explicitly:
- Host commits to provide current EA and all variations within a defined period (e.g., 5 business days of certification or variation).
- Provider commits to recalculate comparison rates within a defined period of receiving a varied agreement.
- Both parties agree a process for managing any backpay liability arising from delayed notification.
For background on checking that rates are correctly applied to labour hire workers, see our article on award rates and labour hire.
Greenfields agreements and major projects
Large construction and resources projects frequently operate under greenfields enterprise agreements — agreements made before any employees are engaged, covering the life of a specific project. These agreements often contain above-award rates, allowances, and conditions specific to the project environment.
For labour hire on major projects, the EA landscape creates pricing complexity that needs to be modelled upfront. If a greenfields EA applies to direct employees on a project site, and a Same Job Same Pay order is in force or anticipated, the labour hire provider’s rates will need to reflect the EA entitlements — not just the award. The difference can be material, particularly where project EAs include above-award allowances for site conditions, travel, or extended hours.
Host employers tendering or contracting for major project labour hire should:
- Share the greenfields agreement with prospective providers at the RFP stage.
- Require providers to price labour hire against the EA entitlements, not just award minimums.
- Model what a Same Job Same Pay order would cost if one were made during the project.
- Build EA-change notification and repricing mechanisms into the contract.
Covered versus uncovered industries
Same Job Same Pay does not automatically apply to every labour hire arrangement in Australia. It applies where the Fair Work Commission has made a labour hire order. Orders are made in response to applications — they do not arise automatically because labour hire is being used.
The resources and construction sectors have seen the earliest and most significant order applications, reflecting the historical use of labour hire on major projects and established union coverage. But the framework is available across industries, and coverage will expand as applications are made and determined.
To check whether a labour hire order applies to your site or engagement, search the Fair Work Commission’s published orders register. Your labour hire provider should also be monitoring this as part of their compliance obligations. If you are unsure whether an order applies to your arrangement, seek legal advice before assuming you are not covered.
What host employers should do now
- Audit your current labour hire contracts to check whether EA sharing and notification obligations are included — most older contracts predate Same Job Same Pay and will need updating.
- Share your current EA with your provider immediately if you have not already done so.
- At your next EA negotiation, model the cost impact of the proposed rates on your labour hire spend — an EA increase is no longer just a direct-employment cost event.
- Ask your provider how they are managing pay comparison calculations and what their process is for updating rates when your agreement changes.
- Check whether any current or anticipated FWC labour hire orders apply to your site.
Related reading
W41-02: Collective Bargaining and the Contingent Workforce: What Employers Should Plan For
Related services
Managed Skilled Workforce — structured workforce delivery with compliance built in, including EA-adjacent pay management for complex sites.
MSP and People Solutions — end-to-end management of contingent workforce programs, including supplier governance and compliance oversight.
FAQ
Does my enterprise agreement cover labour hire workers on my site?
Not directly. Labour hire workers are employed by the provider, not your business, so your EA does not bind them or the provider. However, where a Fair Work Commission labour hire order is in force, the provider must pay the worker no less than what your EA would pay for the same work. The legal relationship sits with the provider, but your EA rates become the pay floor.
What happens if my EA changes after I have a labour hire contract in place?
If a Same Job Same Pay order applies, the provider’s obligation to match your EA rates updates when the agreement changes. If your contract does not include an EA notification obligation, the provider may not find out in time, creating a window where workers are underpaid the comparison rate. Build notification and repricing obligations into your contract now, before your next EA renegotiation.
Does Same Job Same Pay apply to every labour hire arrangement?
No. Same Job Same Pay requires an FWC labour hire order to be in force for a specific arrangement. Orders are made in response to applications and are not automatic. The resources and construction sectors have the most orders to date, but any industry can be covered. Check the FWC orders register or seek legal advice if you are unsure whether an order applies.
Should my labour hire provider be pricing against our EA or just the award?
If a Same Job Same Pay order applies (or is likely), your provider should be pricing against the EA rates, not just the award. Providers who price only to award and then face an order will need to reprice — and the commercial risk of that gap needs to be allocated clearly in your contract. Require your provider to confirm at quoting stage whether they have reviewed the EA and what rates their pricing is based on.
Next step
If your site operates under an enterprise agreement and you use labour hire, the time to review your contracts and your provider’s pay practices is before your next EA cycle — not after a Fair Work Commission order lands. Talk to Programmed about how the managed skilled workforce model handles EA-adjacent compliance, including pay comparison, agreement tracking, and cost modelling for EA variations.
Explore managed skilled workforce solutions.
General information only: This article is for general informational purposes only and does not constitute legal advice. Legislation varies by state and territory — consult a qualified employment lawyer or Fair Work adviser for guidance specific to your situation.
