Labour Hire WHS Responsibilities in NSW

23 / 09 / 2026

A common misunderstanding is that the agency is responsible for a worker’s safety because the agency is the employer. When it comes to labour hire WHS responsibilities in New South Wales, that’s only half the picture. Both the host business and the labour hire provider have safety duties — and neither can contract them away.

Here’s how those duties are shared on a warehouse floor, and how to get it right.

Labour hire WHS responsibilities

Under the Work Health and Safety Act 2011 (NSW), a “person conducting a business or undertaking” (PCBU) must ensure, so far as is reasonably practicable, the health and safety of workers engaged or directed by the business.

In a labour hire arrangement there are usually two PCBUs:

  • The labour hire provider, which employs the worker
  • The host business, which directs the work and controls the workplace

Both owe the worker a duty of care at the same time, and the law requires them to consult, cooperate and coordinate with each other so far as is reasonably practicable.

Host duties

Because the host controls the site, equipment and day-to-day work, it’s usually best placed to manage:

  • Site-specific induction — layout, traffic management, emergency procedures, first aid and reporting
  • Safe plant and equipment — forklifts, conveyors, racking and pallet jacks that are maintained and fit for purpose
  • Safe systems of work — picking, loading, working at height and manual handling
  • Supervision — especially for new starters in their first shifts
  • Task-specific training on your equipment and processes
  • Site PPE requirements
  • Incident reporting — to the labour hire provider immediately, and to SafeWork NSW for notifiable incidents

Agency duties

  • Checking the site and understanding tasks and hazards before placing workers
  • Screening workers for the right skills, experience and licences — see forklift driver labour hire in Sydney for what that involves for forklift roles
  • General safety induction before the first shift
  • Making sure workers know how to raise safety concerns
  • Staying in contact with workers and host sites, including after incidents
  • Workers compensation insurance and injury management

Want your safety responsibilities agreed in writing? ASTAR works through this with every host site before placing workers. Call 1300 562 562 or talk to our team.

Where it goes wrong

  • A worker is asked to operate equipment they’re not licensed or trained for
  • The host changes tasks without telling the agency
  • No site induction because “they’re only here for a day”
  • Incidents and near misses aren’t reported back to the agency
  • Nobody has agreed in writing who does what

Getting it right

  • Put it in writing. Agree who handles each part of induction, training, PPE and supervision before workers start.
  • Tell your agency when things change. New tasks, equipment or shifts change the risk profile. A clear brief helps — see how to choose and brief a warehouse labour hire company.
  • Treat labour hire workers like your own team. Same induction, supervision, toolbox talks and standards.
  • Report everything. Near misses are early warnings. Share them so both businesses can act.

FAQs

Who is responsible for safety?

Both the host business and the labour hire provider. Each has its own duty and they must consult, cooperate and coordinate with each other.

Does the host need to induct?

Yes. The host is usually best placed to deliver the site-specific induction, as it controls the workplace and its hazards.

Who reports incidents?

The host should tell the labour hire provider straight away. Notifiable incidents must be reported to SafeWork NSW.

Talk to ASTAR

ASTAR Recruitment has supplied warehouse and logistics workers across Sydney since 2006, from Smithfield to Blacktown and beyond. We agree safety responsibilities with host sites before placement, screen workers for the licences and experience your tasks need, and stay in contact with workers and supervisors throughout.

Call 1300 562 562 or send us your enquiry.

This article is general information only and isn’t legal advice. For current requirements, refer to SafeWork NSW and Safe Work Australia’s guidance on labour hire.