Clarification — WHS responsibilities for on-hire arrangements

The duties of the host organisation and the placement agency in on-hire arrangements have traditionally been a matter of uncertainty and ambiguity. With the on-hire firm serving as the actual employer of the worker, people tend to think that the primary responsibility for their wellbeing on the job resides with that organisation.

Revised model work health and safety (WHS) laws, which were released in 2012, clarified the shared obligations of all parties involved — the on-hire firm, the host organisation and the individual.

Nonetheless, the model laws (and the similar legislation effective in Victoria and Western Australia) don't provide specific regulations or requirements for a person conducting a business or undertaking (PCBU) who is involved in an on-hire arrangement when it comes to upholding duty of care. At the same time, a number of misconceptions and misunderstandings remain regarding who has responsibilities and what they should do about them.

For that reason, WorkPro — a specialist in employee inductions and work health and safety training solutions — has addressed the nuances of the topic in its latest e-book. The Work Health & Safety for Contractors in On-Hire e-book, sponsored by Safe Work Consulting, describes key aspects of legislative guidelines, details case studies and provides tips for managing on-hire workers in terms of health and safety concerns.

This is the fifth production in WorkPro's series of e-books that provide direction on WHS. It follows the Independent Contractor e-book, which outlined responsibilities for independent contractors and those who engage them. All resources are free to download from WorkPro's website.

On-hire arrangements explained

Managing and monitoring work health and safety within on-hire arrangements is complicated. There are multiple parties involved with numerous types of employment relationships, such as full-time or casual and a range of contracts.

To bring some clarity to the situation, WorkPro's e-book describes what an on-hire arrangement is as well as the main classifications of workers and organisations involved. It also explains that the labour hire entity retains WHS obligations even while the employees are on the premises of their host enterprises.

Because just about every industry in Australia utilises on-hire arrangements as part of its composite workforce, the changes in WHS laws and their implications for on-hire firms have a wide reach. Not having a clear sense of each party's legal obligations does not absolve entities from their duty or liability, so the time to gain a better understanding is now.

Clearer guidelines on WHS duties

In terms of WHS law, a person conducting a business or undertaking (PCBU) has duty of care to uphold work health and safety. This term applies to the on-hire firm and host organisation, and can apply to workers as well. No one can contract out their responsibilities. Instead, they must share them and coordinate as much as possible.

WorkPro's e-book explains the three vital factors each PCBU must take into consideration for every engagement:

• Obligations to maintain safe, healthy workplaces as much as it is 'reasonably practicable'
• Systems of work
• Consultation, cooperation and coordination with the other PCBUs involved

For on-hire firms, this means they must have a high degree of awareness of the industry, company and role to which they're sending workers.

What on-hire companies can do

Although labour hire agencies may not have the same degree of control over the work site as the host organisation, there are steps they can and should take to safeguard the wellbeing of the employees they place.

Additionally, because enterprises often require placements on short notice — one of the benefits of using an on-hire firm — taking steps like conducting a site assessment might not be feasible. Instead, the firm could carry out an online employee induction with the worker to inform him or her about specific risks and best practices tailored to the host organisation's site. Furthermore, the labour firm could follow up with the worker after he or she arrives on-site for a report about the conditions.

As the e-book makes clear, the on-hire firm will have to coordinate with its clients to conduct inspections of the site and ensure changes are made if anything is amiss. Labour agencies should also ask host organisations for specific details about the roles and skills that will be needed. Both enterprises should also cooperate to keep open lines of communication and ensure all on-hire workers are as well informed about any hazards or process changes as regular employees.

Where to find practical information

On-hire firms should know their obligations in managing and monitoring WHS, especially since they can be held liable for not meeting their duty if they rely exclusively on the host organisation to protect workers.

Any organisation that works with on-hire employees should become familiar with the legislation by reviewing the relevant WHS Act for their jurisdictions, the Guide to Model Work Health & Safety Act and Safe Work Australia's Work Health and Safety Consultation Co-operation and Co-ordination Code of Practice.

For a more practical guideline that relates the law specifically to the types of operations they're involved in, on-hire firms can turn to WorkPro's free On-Hire e-book. By giving specific actions these firms can take, the resource provides a great starting place to create a more proactive, strategic plan for managing WHS for on-hire workers.

The changes to the model WHS laws that clarified all organisations retain responsibility when it comes to workers' health and safety are an important step towards ensuring all people have the protection they deserve on the job. However, now it's in the court of each firm to ensure it understands the extent of its duties and knows how to carry them out thoroughly and confidently.