ARTICLE · 20 SEPTEMBER 2025

Labour Hire Arrangement Orders: What You Must Know

Clifford Gouldson Lawyers

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A LHAO can only be made upon application to the Fair Work Commission and only by an employee of the labour hire company or of the host business, a Union, or the host business.

AustraliaEmployment and HR

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*This alert is particularly important for those businesses that engage employees in a labour hire arrangement.

As part of the changes effected by the Fair Work Legislation Amendment (Closing Loopholes) Act 2023 (Cth) (effective 15 December 2023), we are now seeing an increasing number of Fair Work Commission decisions being made in relation to Labour Hire Arrangement Orders (LHAO).

In essence, an LHAO is designed to regulate labour hire arrangements by ensuring that labour hire employees are paid no less than the rates which they would have received if they were directly employed by the host business under its applicable employment instruments. It aims to prevent the undercutting of bargained wages through the use of labour hire workers.

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