Labour hire agencies in Australia: what working holiday makers need to know

How does labour hire work?

When you register with a labour hire agency:

• You become an employee of the agency, not the client business
• The agency provides workers to client businesses for a fee
• You work at the client's location but are paid by the agency
• The agency manages your tax, super, and payroll

This means your payslip comes from the agency, not from the business where you actually work. The agency is your legal employer for all employment law purposes.

What are the advantages?

For working holiday makers, the main advantages are:

• Speed: agencies often place workers within days of registration
• Variety: multiple clients across different industries
• Paperwork handled: tax and super managed by the agency
• Useful for travellers: easy to move between locations
• Lower barrier to entry: less interview process than direct hiring

If you need work urgently or have just arrived in a new area, an agency can get you working quickly.

What are the risks of labour hire?

Quality varies significantly between agencies:

• Reputable agencies: pay correctly, comply with employment law, treat workers fairly
• Less reputable agencies: underpay, misclassify, apply excessive deductions

Common problems with poor-quality agencies:

• Charging for accommodation and transport at rates that bring effective pay below minimum wage (illegal)
• Misclassifying employees as contractors to avoid super and entitlements
• Failing to pay correct penalty rates
• Not providing payslips
• Withholding wages until "completion" of a placement

Before registering, check whether the agency is licensed. Several Australian states (Victoria, Queensland, South Australia, ACT) require labour hire agencies to hold a licence. Operating without one is illegal in those states.

What are your rights as a labour hire worker?

The same rights apply whether you work directly for a business or through an agency:

• Minimum casual rate for your industry ($31.19/hour for 2025-26)
• Payslips within 24 hours of each pay
• Superannuation at 12% of gross earnings (from 1 July 2025)
• Safe working environment
• Penalty rates for weekend, public holiday, and overtime work
• Clear written terms before starting

If an agency tries to tell you that "different rules apply" because they are a labour hire company, that is incorrect. Standard Australian employment law applies fully.

How do tax and super work through an agency?

As an employee of the agency:

• Provide your TFN and complete a Tax File Number Declaration form (selecting Working Holiday Maker)
• The agency withholds 15% PAYG tax
• The agency pays 12% super into your nominated fund
• Your income appears under the agency's name in your ATO records

Check your payslips to confirm:

• Tax withheld is approximately 15%
• Super line item shows 12% of gross
• Hours and rate match what you worked
• Your TFN is on file

If something looks wrong, send us your payslips and we will check the treatment.

What if you suspect underpayment?

If you suspect the agency is underpaying you:

1. Keep all payslips and any agreement documents
2. Note your hours, rates, and any deductions taken
3. Calculate your effective hourly rate (total earnings ÷ total hours)
4. Compare against the minimum for your industry
5. Get in touch with our team for help recovering what you are owed

Our team has helped working holiday makers recover unpaid wages and super from agency arrangements. The same protections apply as for direct employment, and the agency cannot use your visa status against you for raising a complaint.

How can you tell if an agency is reputable?

Signs of a reputable agency:

• Licensed in the relevant state
• Pays into a known super fund
• Provides clear, written terms before placement
• Issues professional payslips with all required information
• Has a long track record (look for online reviews)
• Pays on time consistently

If an agency seems evasive about basic details, that is a warning sign.