b'C SAME JOB, SAMECLLOOSSIINNGGLLOOOOPPHHOOLLEESS PAY, LABOUR HIRE When: 1st November 2024a covered employment instrument generally an enterprise agreementthatWhat it is:applies to the host would apply to theRelates to the employees of a labour hire employees if the host employed theagencyemployees directly to perform work ofLabour hire employees may be required to that kind; and bepaidthesameratesasemployeesof the host is not a small business employer. the host employerIf a RLHAO is made by the FWC, the labour hire agencyThe rate of pay is the full rate (including cannot, subject to limited exceptions, pay its employeesbonuses,loadings,allowances,overtime less than the relevant rate of pay which would apply toand penalty rates)the employee under the hosts covered employment Various parties can make an applicationinstrument. What it isnt: The RLHAO ultimately applies to the host employer i.e. Two-waya decision by FWC sticks to the host employer and they Applicable to small businesseshave an obligation to apply to the FWC for an order to vary the RLHAO if they engage through a new labour hire agency; and to let potential agencies know that an RLHAO may apply. Key Changes:The Governments stated intent behind the same job, same pay measures is to prevent host employers from The Fair Work Commission (FWC) now has the power to undercutting bargained wages in enterprise make a regulated labour hire arrangement order agreements by engaging labour hire workers (who are (RLHAO) requiring employers that supply their paid less than they would be under the host employers employees as labour hire to perform work for a host enterprise agreement). employer, to pay their employees the same rate of payas employees of the host employer who perform The FWC will only be able to make a labour hire order comparable work.where it is fair and reasonable to do so and can take The new labour hire provisions create a right for variousinto consideration a number of factors such as the parties to apply to the FWC for a RLHAO.current and historical coverage and application of the host employment instrument, and the nature of the work being performed. The FWC must make a RLHAO if: an employer (in this case, the labour hire Interesting Statistic:agency) supplies or will supply, either 66 orders made since November 2024directly or indirectly, employees to a hostto perform work for the host;Practical Tips for Employers: 1) As a labour hire agency, checkwhether an EnterpriseAgreement applies in a hostemployer before quoting ratesin case of a RLHAO 2) As a host, be aware of potential RLHAOs and consider the nancial implication Page | 8IR Update July 2025'