Case note - Roosters, ducks and labour hire arrangements : Damevski v Guidice (2003) 202 ALR 494 (FCA Full Court)

One of the features of the current Australian labour market is the growth in the number of businesses "contracting out" work that was previously performed by their employees. The "contracting out" is often done through labour hire arrangements: the business engages a labour hire agency to provide it with suitable labour on an "as needs" basis. A common scenario is that the labour hire agency contracts both with the workers who provide the services to the agency's client, and with the client to whom those services are provided. Often the agency pays the workers and bills its client for the labour costs, plus a service fee. Research indicates that during the first half of the 1990s, "the number of agency workers more or less doubled."1 Analysis of the latest data from the Australian Bureau of Statistics on the number of workers employed through labour hire arrangements has suggested: "290,100 employees were 'on-hired' through agencies in June 2002 and 162,000 workers were paid by labour hire firms in November 2001 (almost doubling from 84,300 some three years earlier)." The value of the employment services industry in 2001-02 was $10.2 billion. 2