7—Meaning of " "labour hire services"
(1) Subject to
subsection (2), a person provides "labour hire services" if—
(a) in
the course of conducting a business the person supplies, to another
person (the "host"), an individual to undertake work; and
(b) the
individual is a labour hire worker for the person.
(2) A person does not
provide labour hire services under subsection (1) in the following
circumstances:
(a)
where an individual is supplied to a host to undertake work that is not
undertaken as part of a business or commercial undertaking of the host;
(b)
where an individual is supplied to undertake work that is not prescribed work;
(c) any
other circumstances prescribed by the regulations.
(3) For the purposes
of subsection (1), a person may provide labour hire services to a host
regardless of whether—
(a) a
worker supplied by the person is supplied to the host directly or indirectly
through 1 or more agents or intermediaries; or
(b) the
work performed is under the control of the person or the host.
Examples—
1 A has a labour hire business and has an
arrangement with B under which A may supply B to
other persons to undertake work for which B will be paid by A.
In the course of conducting the business, A agrees with C to
supply an individual to undertake meat processing work for C at
C's meat processing business. A sends B to C to
undertake the work for which A will pay B. A provides
labour hire services in supplying B to C.
2 A runs a horticultural processing business and
employs B to undertake work in the business. In the course of conducting
the business, A enters into a contract with C to pick the grapes at
C's commercial winery. As part of employment in A's business,
B attends at C's winery and picks the grapes. A does not
provide labour hire services to C because A is not supplying an
individual to undertake work (see section 9) and B is not a
labour hire worker for A (see section 8).
At a neighbouring winery, D wants to pick their grapes but does not want
to contract out the job, preferring to undertake the work themselves. Needing
a worker and having seen A's business working at C's winery,
D asks if A would be able to send an individual to work for
D at D's winery for 2 days. A asks B if B would
agree to be sent to undertake work for another person but be paid by
A, to which B agrees. A sends B to work for D at
D's winery for the 2 days but B also continues to work
4 regular shifts per week in A's horticultural services business.
A does not provide labour hire services to D because, despite the
new arrangement between A and B and the supply of B to undertake
work for D, B is an in-house employee of A and therefore not a
labour hire worker for A (see section 8).