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First Regulated Labour Hire Arrangement Order

The first tranche of amendments to the Fair Work Act 2009 (Cth) pursuant to the Fair Work Legislation Amendment (Closing Loopholes) Act 2023 (Cth) provided new powers to the Fair Work Commission to make a “regulated labour hire arrangement order”.

The first tranche of amendments to the Fair Work Act 2009 (Cth) (FW Act) pursuant to the Fair Work Legislation Amendment (Closing Loopholes) Act 2023(Cth) provided new powers to the Fair Work Commission (FWC) to make a “regulated labour hire arrangement order”.

These amendments, known more widely as “same-job, same pay” laws were intended to ensure that labour employers who supply labour to a host employer pay their employees no less than the rate that they would be paid if they were directly employed by the host employer.

The Full Bench of FWC recently made the first regulated labour hire arrangement order following an application by the Mining and Energy Union (MEU) (see Application by the Mining and Energy Union [2024] FWCFB 299)

The MEU’s application for an order was in respect of labour hire employees working at a black coal mine operated by Batchfire Callide Management Pty Ltd (Batchfire). WorkPac Pty Ltd and WorkPac Mining Pty Ltd (WorkPac) provided labour hire employees to Batchfire who worked at the Callide black coal mine.

Both employees of Batchfire and WorkPac who worked at the mine performed the same production work, were required to attend the same pre-start meetings on a daily basis, wear the same uniform belonging to Batchfire, were required to comply with Batchfire’s operating procedures, were rostered on the same rosters, and took breaks and annual leave at times determined by Batchfire.

The Full Bench was satisfied that the application made by the MEU met the requirements under section 306E of the FW Act and accordingly was required to make the regulated labour hire arrangement order. The order will provide WorkPac is to pay no less than the rate of pay which is derived from the Callide Mine Union Enterprise Agreement 2021 to its employees performing work for Batchfire at the mine from 1 November 2024.

Information provided in this news alert is not legal advice and should not be relied upon as such. Workplace Law does not accept liability for any loss or damage arising from reliance on the content of this blog, or from links on this website to any external website. Where applicable, liability is limited by a scheme approved under Professional Standards Legislation.

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