Every day a job role stays empty costs your organization money and stretches your existing team. One might think you just need a labour hire agency. But if you pick the wrong provider, you risk fines too, since Queensland is strict about who can legally supply staff.
A labour hire agency can fix this fast. It fills the gap within days, stays compliant with the law, and keeps costs clear from the start.
This guide shows you how labour hire works, what it costs, and how to pick an agency you can trust. Read it before you sign with anyone.
What Is Labour Hire and How Does It Work?
Labour hire is a three-way arrangement. An agency employs the worker. Your business directs their daily work. The worker shows up and does the job.
The agency handles payroll, superannuation, workers’ compensation, and award pay rates. You handle supervision and safety on-site. This is the core process behind every labour hire placement.
Labour hire differs from a recruitment agency. A recruitment agency finds candidates for your business to employ directly. With labour hire, the agency stays the legal employer the whole time.
Labour hire suits variable demand. Think seasonal peaks, a sick roster, or a new production line. Many employers also use a temp placement as a trial before offering a permanent role.
Why a Labour Hire Agency Queensland Businesses Use Must Be Licensed
Queensland was the first Australian state to require labour hire licensing. The Labour Hire Licensing Act 2017 (Qld) makes this mandatory for every provider.
Any agency that supplies and pays workers for a Queensland business needs a current licence. This applies even if the agency is based in Sydney, Melbourne, Adelaide, or Perth. If the work happens in Queensland, a Queensland licence is required.
The duty doesn’t sit only with the agency. As the host business, you must confirm your provider is licensed before you engage them. Using an unlicensed provider is an offence under Queensland law.
What the Penalties Look Like
A company can be fined up to $378,450 for knowingly engaging an unlicensed labour hire provider. An individual can face a fine of up to $130,439, or three years in prison. These figures come from the Queensland Government’s labour hire licensing scheme and can change over time, so confirm the current amount before you rely on it.
A limited defence exists. It applies if the provider showed as licensed on the public register when you engaged them. That defence only holds up if you checked the register and kept a record of the search.
Ask the agency for their licence number in writing. Save your search result and the date you checked it.
Licences renew every year from the date they were first granted. This is not a fixed calendar date. Re-check your current provider once a year, because a licence that was valid last year may have lapsed.
To hold a licence, a provider must prove they are a fit and proper business. They must also show financial viability and comply with tax, safety, and employment law. This process protects workers and gives host businesses a way to check who they are dealing with.
Not sure if your current provider is compliant?Contact FINDMEAand we will talk you through what to check.
Labour Hire vs a Recruitment Agency
The two terms get used interchangeably, but they are not the same service.
A labour hire agency employs the worker and supplies them to your business on a temporary or ongoing basis. A recruitment agency finds candidates and places them directly onto your payroll for permanent placements.
FINDMEA operates across both models. We offer temp and on-hire staffing alongside permanent recruitment, depending on what your business needs.
Job seekers benefit from this too. A labour hire role gives someone real experience with your business. For a strong performer, it can lead to a genuine, permanent opportunity.
What Labour Hire Services Actually Cost
Labour hire pricing runs on a bill rate. This single hourly figure covers the worker’s wage, casual loading, superannuation, the workers’ comp premium, and the agency’s margin.
Bill rates vary by industry award, role risk, shift pattern, and location. On an hourly basis, labour hire can cost more than a direct hire.
But that comparison misses the full picture. Direct employment carries hidden costs too, including advertising, interview time, onboarding, and termination risk if a hire does not work out.
For short-term or variable demand, labour hire usually wins on total cost. For a long-tenure role, direct employment tends to become more cost-effective after the first year.
Ask any agency about temp-to-perm conversion fees before you sign. These fees vary, and your agreement should spell them out clearly.
Want a cost comparison for your team?Get in touch with FINDMEAand we will walk you through the numbers.
Your Compliance Obligations as a Host Business
A licensed agency takes on a lot of risk, but not all of it. Under the Work Health and Safety Act 2011, your business is still a Person Conducting a Business or Undertaking.
This means site inductions, safety briefings, PPE, and safe work systems remain your job. You cannot contract these duties away, even through a licensed agency.
Labour hire workers also hold the same workplace rights as your direct employees. The Fair Work Act’s general protections apply, no matter who pays their wage.
Superannuation for the worker sits with the agency, as the legal employer. Payroll tax on your own business may still be affected by labour hire arrangements, so check this with your accountant.
How FINDMEA Supports Job Seekers and Employers in Queensland
FINDMEA is a Queensland labour hire and recruitment company, based in Murarrie, Brisbane. We recruit across eight specialist divisions: Industrial, Trades & Engineering, Administration, Professional, Government, Pharmacy, Retail Trade Store, and Contact Centre.
We assist job seekers directly too, not just employers. Candidates can search current vacancies, register their details, and get support finding a role that fits their skills and career goals.
How to Choose the Right Labour Hire Agency in Queensland
Check the licence first. This step is not optional. If an agency cannot produce a current licence number, do not engage them.
Ask about sector experience. A specialist team understands your industry’s award rates, safety rules, and skill shortages better than a generalist.
Ask how deep their candidate pool is. Some agencies re-advertise every time a role opens. Others keep an active pool of pre-screened candidates ready to start.
Read the agreement terms closely. Look for conversion fees, minimum engagement clauses, and current insurance certificates.
Judge their response time. How fast can they fill an urgent vacancy? Do you get a dedicated account contact, or a call centre?
Ask how far ahead they plan. Employers who brief their agency six to eight weeks before a busy season tend to get better candidates and faster fill times.
Do labour hire agencies in Queensland need to be licensed?
Yes. Any provider that supplies workers to a Queensland business must hold a current licence under the Labour Hire Licensing Act 2017. Host businesses that knowingly engage an unlicensed provider can face fines of up to $378,450.
What is the difference between a labour hire agency and a recruitment agency?
A labour hire agency employs the worker and remains their employer while they work at your business. A recruitment agency places candidates directly onto your payroll. FINDMEA offers both services, depending on what fits your needs.
How do I check if a labour hire agency is licensed in Queensland?
Can I convert a labour hire worker into a permanent employee?
Yes. Most labour hire agreements include a temp-to-perm pathway. Ask about conversion fees and minimum engagement periods before you sign.
Who is responsible for a labour hire worker’s safety on-site?
Both parties share this duty. The agency manages payroll and workers’ comp as the employer. Your business, as the host, still owes a duty of care under workplace health and safety law.
Why Queensland Employers Partner With FINDMEA
FINDMEA is located in Murarrie, Brisbane, and works with organisations across Queensland’s industry sectors. Whilst many agencies focus on one type of role, our team spans eight divisions, giving employers access to a wider range of skills.
Our consultants craft each search around your actual role, not a generic template. We take time to understand your demands, from a single urgent shift to a full project team.
This process helps us find candidates who fit, whether you need trades support, construction labour, transport staff, or office administration. We take pride in matching the right person to the right job, and we track outcomes to keep improving our process.
Employers connect with a dedicated consultant, not a call-centre queue. That partnering approach gives you one point of contact who knows your business and your history with us.
Our goal is to help your organisation succeed, whether that means covering a busy season or building a long-term team. Explore our divisions, discover which one fits your industry, and discuss your next hire with our experts.
We aim to help every client and candidate excel, and we develop our processes to keep pace with Queensland’s changing job market. Ensuring a strong match on day one supports better productivity and fewer replacement hires down the track.
Ready to connect with a consultant?Reach out to FINDMEAand tell us what you need.
Ready to Build Your Queensland Workforce?
Labour hire lets Queensland employers scale a team up or down without a long-term commitment. This only works when you partner with a licensed, transparent agency.
Check the register. Ask the right questions. Treat your provider as a long-term workforce partner, not a one-off transaction.
FINDMEA has worked with employers and job seekers across Brisbane and Queensland for years. We recruit across eight industry sectors, and our team is committed to getting the match right the first time. If you are ready to discuss your workforce needs, contact FINDMEA, and we will help you find the right fit.
Simon Leach is an experienced human resources and recruitment professional based in Brisbane, Queensland, Australia, currently serving as a Director at FINDMEA. He operates the business alongside co-founder Sheryn Leach.
Simon Leach is an experienced human resources and recruitment professional based in Brisbane, Queensland, Australia, currently serving as a Director at FINDMEA. He operates the business alongside co-founder Sheryn Leach.
Simon Leach is an experienced human resources and recruitment professional based in Brisbane, Queensland, Australia, currently serving as a Director at FINDMEA. He operates the business alongside co-founder Sheryn Leach.