(1) In this
section —
labour hire employment means employment of an
individual (the employee ) under a contract of employment pursuant to which
the services of the employee are temporarily lent or let on hire by the
employer (the labour hirer ) to another person (the host ).
(2) If employment is
labour hire employment, the employee is a worker for the purposes of this Act.
(3) If employment is
labour hire employment, the labour hirer (and not the host) is the
worker’s employer for the purposes of this Act for work done personally
by the worker for the host but only if the following conditions are
satisfied —
(a)
there is no contract between the worker and the host for the work to be done
for the host;
(b) if
the labour hirer is a corporation — the worker is not a director of
the corporation.
(4) A reference in
subsection (3) to work done for the host includes work done for another
person —
(a) at
the direction of the host; or
(b)
under an arrangement between the labour hirer and the host.
Notes for this section:
1. This section does
not make an employment agent the employer of a person for whom the agent finds
work if the worker is engaged directly by the person for whom the work is to
be done. It makes the labour hirer the employer only if there is no
contractual relationship between the worker and the host.
2. Under Part 5
Division 2 the host may be liable as “principal” to pay
compensation to the worker as well as the labour hirer under this section. The
“principal” may then recover compensation from the labour
hirer (see section 217) in specific circumstances.