What each service actually is
Labour hire
Labour hire is a tripartite arrangement. A licensed agency employs a worker (paying wages, super, workers compensation and PAYG tax) and supplies that worker to a host business for a per-hour charge rate. The host business directs the day-to-day work but is not the legal employer. This structure is defined in state-based labour hire licensing acts and is subject to the Fair Work Act 2009.
Source: Fair Work Act 2009 s15A; QLD/VIC/SA/ACT Labour Hire Licensing Acts.
Permanent recruitment
Permanent recruitment is a two-party arrangement. The agency sources a candidate; the client directly employs that candidate; the agency is paid a one-off placement fee, typically expressed as a percentage of the successful candidate's first-year total remuneration. Reputable agencies offer a replacement guarantee window (commonly 30–90 days).
Source: RCSA industry code of conduct — the peak body for recruitment and staffing in Australia and New Zealand.
When to use each
Choose labour hire when…
- Demand is variable, project-driven or urgent.
- You need someone on site within hours or overnight.
- You want to trial a worker before offering a permanent role.
- You are scaling a site up for a phase and back down afterwards.
- You want to avoid carrying the workers compensation premium and termination risk.
Choose recruitment when…
- The role is long-term — years, not months.
- You want the direct employment relationship for loyalty and progression.
- The role is senior, specialist or salaried (project managers, engineers, estimators).
- You are happy to carry all payroll, super, workers comp and Fair Work obligations from day one.
- Candidate access, screening rigour and shortlist speed are the levers you need.
Cost comparison
The two models are billed in fundamentally different ways. Labour hire is billed per hour worked; permanent recruitment is billed as a one-off placement fee tied to salary. Ranges below are typical Australian market bands for 2026 — the exact figure for any placement depends on trade, classification, state, shift type and rate agreement.
| Line | Labour Hire | Permanent Recruitment |
|---|---|---|
| Billing basis | Per hour worked, evidenced by a docket. | One-off placement fee on start date. |
| Typical pay rate (worker) | $35–$65/hr (construction and civil trades) | Salary — direct from client |
| Typical charge rate (client) | $50–$95/hr | n/a |
| Placement fee | n/a | 15–20% of first-year salary (blue-collar / admin); 20–30% (specialist / white-collar / exec) |
| Legal employer | The labour hire agency | The client |
| Payment terms | Typically 7 days | Typically 30 days from start |
Source: HBG placement data and rate agreements; ranges are indicative for the Australian market in 2026.
Legal, insurance and oncost differences
- Who pays wages, super and PAYG?
- Labour hire: the agency. Recruitment: the client (from day one).
- Who holds the workers compensation policy?
- Labour hire: the agency, at the labour hire industry classification for that trade. Recruitment: the client, under the client's own policy.
- Who owes Fair Work compliance?
- Labour hire: the agency for wages and entitlements; the host for direction of work and site conditions. Both share duty of care under Model WHS laws. Recruitment: the client from day one.
- Is a licence required?
- Labour hire providers must hold a licence in QLD, VIC, SA and ACT. Recruitment agencies are not separately licensed under those regimes but are still subject to Fair Work, privacy and consumer law.
Source: Safe Work Australia Model WHS laws; QLD Labour Hire Licensing Act 2017; VIC Labour Hire Licensing Act 2018; SA Labour Hire Licensing Act 2017; ACT Labour Hire Licensing Act 2020.
By the numbers
A snapshot of HBG's scale across labour hire and permanent recruitment.
- Candidates in Our Network
- 128,000+
- Job-Ready Workers
- 10,800+
- Unique Workers On-Site (12m)
- 1,270+
- Client Return Rate
- 92%
- Full-Time Jobs Found (12m)
- 106+
- Perm Placement Rate
- 82%
Source: HBG internal placement data (published on /reviews and /about). Also referenced: Fair Work Commission Annual Wage Review; award minimum rates published on the HBG Labour Market Index (/labour-market-index).
What clients say
“Whether you require a full-time civil labourer, one-off placement, or a whole team, they provide highly-skilled, reliable, and safety-focused labour with a great work ethic for our civil labour needs.”
“We came across Harrison Barratt Group via a Google search. At the time, our current provider let us down three times in a row on a major project. HBG was able to send 3 asbestos workers within one hour. We have been working with them ever since.”
“Working with HBG has transformed our approach to staffing. Their ability to provide skilled personnel even on short notice has kept our projects on track and within budget. I’m particularly impressed with their commitment to safety and diversity in the workplace.”
Source: HBG client reviews (published on /reviews). Author first names and company categories are the anonymisation applied where the reviewer requested anonymity.
Frequently asked questions
- What is labour hire in Australia?
- Labour hire is a tripartite arrangement where a licensed agency (the labour hire provider) employs a worker and supplies that worker to a host business for a per-hour charge. The agency remains the legal employer — it pays wages, superannuation, workers compensation and PAYG tax. The host business directs the day-to-day work but does not directly employ the worker. This is defined in state-based labour hire licensing legislation (QLD Labour Hire Licensing Act 2017, VIC Labour Hire Licensing Act 2018, SA Labour Hire Licensing Act 2017, ACT Labour Hire Licensing Act 2020) and is subject to the Fair Work Act 2009.
- What is recruitment in Australia?
- Permanent recruitment is a two-party arrangement where an agency sources a candidate and the client directly employs that candidate. The agency is paid a one-off placement fee — commonly a percentage of the first-year salary — and usually offers a replacement guarantee period if the placement does not work out. The client owns all payroll, super, workers compensation and Fair Work obligations from day one.
- When should I use labour hire instead of hiring directly?
- Labour hire suits variable, project-driven or urgent workforce demand: filling a shift the next morning, scaling a site up for a phase of works, covering illness or absence, or trialling a worker before offering a permanent role. Because the agency carries the employment relationship, the host business can flex its workforce without carrying redundancy risk, workers compensation premiums or termination liability.
- When should I use permanent recruitment?
- Permanent recruitment suits roles you expect to keep for years: site managers, project engineers, estimators, department leads. The client wants to build long-term loyalty and career progression, which is easier when the employment relationship is direct. The agency's value is candidate access, screening rigour and speed to shortlist — not ongoing employment administration.
- How much does labour hire cost?
- A labour hire charge rate is the pay rate plus oncosts (superannuation, workers compensation, payroll tax, leave loading and administration) plus the agency's margin. For construction and civil trades in Australia a typical pay rate range is $35–$65 per hour, and a typical charge rate range is $50–$95 per hour, depending on trade, classification, state and shift type. See our /guides/how-labour-hire-billing-works page for a full worked example.
- How much does a permanent placement cost?
- Placement fees in Australia are almost always expressed as a percentage of the successful candidate's first-year total remuneration. Typical ranges are 15–20% for blue-collar and administrative roles, and 20–30% for specialist white-collar, engineering and executive roles. Most reputable agencies include a replacement guarantee window (commonly 30–90 days) during which they will re-recruit at no additional fee if the placement leaves or is terminated.
- Who is legally responsible for the worker's pay and safety?
- In labour hire the agency is the legal employer and is responsible for wages, super, workers compensation and PAYG tax. The host business is legally responsible for site safety, induction, direction of work, and Work Health and Safety compliance for anything that happens on its premises. Both parties share a duty of care under the Model WHS laws administered by Safe Work Australia. In permanent recruitment the client owns all employment obligations from the candidate's first day.
- Is labour hire licensed in Australia?
- Yes — labour hire licensing is mandatory in Queensland, Victoria, South Australia and the Australian Capital Territory. Each of these regimes requires the labour hire provider to hold a current licence, to be a fit and proper person, and to comply with wage, superannuation and taxation obligations. Operating without a licence in a licensed state carries fines exceeding $500,000 for corporations and potential criminal charges for directors. NSW, WA, NT and Tasmania do not currently have a mandatory labour hire licensing scheme.
Cited sources
- Fair Work Ombudsman — Award interpretation, minimum wage, entitlements enforcement.
- Fair Work Commission — Modern awards, Annual Wage Review, workplace determinations.
- Recruitment, Consulting & Staffing Association (RCSA) — Industry code of conduct for labour hire and recruitment agencies in Australia and NZ.
- Safe Work Australia — Model WHS laws — the framework each state and territory adopts.