Hiring

Before the first shift: the onboarding paperwork for a labour hire worker, and who owns each piece

When a worker turns up on your site on Monday, a stack of employment paperwork should already be done. Most of it isn't yours to do, but knowing what it is tells you what to ask your provider.

Busy-season starts are when new clients ask us the same quiet question: "What actually has to happen before these people start?" It's a good question, because the answer is split across two businesses. The agency is the employer and carries the employment paperwork. You're the host and carry the site. When the split is clear, day one runs smoothly. When it isn't, things get missed in the gap.

Here's the paperwork side, what each document is for, and what you should expect your provider to have done.

Why the agency holds most of it

With labour hire, the worker is employed by the agency, not by you. That means the legal obligations that come with being an employer, such as giving statements, collecting tax details and sorting super, sit with the agency. When you book workers through us, we are their legal employer, so this section of the checklist is ours.

That doesn't mean you can ignore it. If the paperwork isn't done properly, it's your workers who are confused about their pay, and your roster that gets disrupted. It's fair to ask a provider how they handle it.

The Fair Work Information Statement

The Fair Work Ombudsman is clear that employers must give every new employee a copy of the Fair Work Information Statement before, or as soon as possible after, they start. It covers the National Employment Standards, flexible working requests, modern awards, individual flexibility arrangements, general protections, termination, and the roles of the Fair Work Ombudsman and the Fair Work Commission.

It can be handed over in person, posted, emailed, or sent as an emailed link to the Fair Work Ombudsman's page. It isn't complicated. The point is that it is done, and done for everyone, including short-term and casual starters.

The Casual Employment Information Statement

A lot of labour hire work is casual. For those workers there's a second document. Employers must give each new casual employee the Casual Employment Information Statement at the same time as the first one. It explains what casual employment is and how a casual can notify their employer that they want to change to permanent employment.

There's a timing detail worth knowing, because it applies to longer placements. The Fair Work Ombudsman says that for employers other than small businesses, the statement must be given again after 6 and 12 months of employment, and then after every 12 months. For small businesses (fewer than 15 employees), it's after 12 months. Also, employers should give the version in force at the time, not an old saved copy. If you're planning a long placement, our piece on how casual to permanent works explains why this matters.

Tax file number declaration and super choice

The ATO's guidance tells employers to ask a new employee to complete a tax file number declaration and a superannuation standard choice form. These let the employer work out how much tax to withhold and where to pay super.

A few details from the ATO that matter in practice:

  • A worker can complete online commencement forms through ATO online services instead. They must do that within 28 days of starting, then give the employer the summary to enter into payroll.
  • If a worker doesn't give a TFN and doesn't claim a valid exemption, the employer must withhold at the top rate of tax (plus Medicare). That is a very unpleasant first payslip, so it's worth chasing early.
  • If a worker gives their TFN, the employer must pass it to their super fund the next time they pay super for them, or within 14 days of receiving it, whichever is later.
  • If a worker doesn't choose a fund, the employer may need to ask the ATO for the worker's stapled super fund. The ATO says that if the employer doesn't meet its choice-of-fund obligations, the super guarantee charge may apply.

None of this is visible to you as a host, but it's a good indicator of how organised your provider is. If a worker tells you they haven't been asked for their TFN after a week, mention it to the agency.

What sits with you as the host

The employment paperwork is the agency's. The site is yours. Before the first shift, you should have:

  • A site induction ready, covering layout, traffic, emergency points and who supervises. Our article on your safety duties as a host covers why this can't be handed to the agency.
  • A named supervisor for each shift whose contact details your provider has.
  • A clear brief on tasks, hours, PPE and any licences. If forklift work is involved, read what to check before anyone touches the keys.
  • A plan for work rights checks. Who verifies this, and how, should be agreed up front. See checking work rights before someone starts.
  • A way to feed back in the first week, so the provider can fix a bad fit quickly.

If you haven't written a brief for a provider before, how to brief a labour hire agency is the place to start.

Questions worth asking your provider

You don't need to audit anyone, but a few direct questions tell you a lot:

  1. Do workers receive the Fair Work Information Statement, and the Casual Employment Information Statement if casual, before or at the start of their first shift?
  2. How do you collect TFN and super details, and what happens if a worker hasn't supplied them by their first pay?
  3. Who confirms work rights, and when?
  4. What does your own induction cover, and what do you expect us to cover?
  5. Who do we call if something goes wrong in the first week?

A provider who answers these quickly and specifically is usually one who does it properly. One who is vague is telling you something too.

A realistic day one

In practice, the best starts we see have the paperwork finished before the worker walks in. They arrive knowing their pay arrangements, the address, the start time and who to ask for. The host's supervisor meets them, runs the induction, shows them the job and checks in at the end of the shift. Nobody is filling out forms in the car park.

That takes a bit of lead time, so a booking made the day before has less room for this than one made a week ahead. That's a real trade-off of urgent starts, and we'd rather tell you so than pretend otherwise.

If you're setting up a new warehouse or distribution crew, our warehouse and distribution labour hire page explains how we approach it, and you can get in touch to talk through your site.

This is general information, not legal advice. Obligations depend on the worker's employment type and your circumstances, so get advice on your specific situation.

General information only, current at the time of writing — not legal advice. Workplace and licensing laws change; confirm anything decision-critical with the relevant regulator or a qualified adviser.

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