On November 1, 2024 new ‘same job, same pay’ laws came into effect, requiring labour hire workers to be paid the same as host company employees if certain criteria are met. Here’s what the laws mean for businesses:
How does ‘same job, same pay’ work?
Under the changes to the Fair Work Act 2009, the Fair Work Commission (FWC) has the authority to issue a “regulated labour hire arrangement order” requiring an employer to pay labour hire workers at least the same as their host company’s direct workforce if those labour hire employees are classified under the host company’s enterprise agreement.
Construction, mining, resources and other industries using labour hire firms are particularly impacted by this change to regulated labour hire.
However, the same job, same pay laws do not apply:
- if the host company has less than 15 employees;
- if labour hire workers are providing a service rather than their labour; or
- they are covered by a training arrangement or working for a host company for a short period (three months or less).
Protected rates of pay and penalties for non-compliance
The FWC has the power to issue orders for protected rates of pay.
A host company or its employees, labour hire workers or a union can apply to the FWC for an order.
If an order is made, labour hire workers will receive the same "full rate of pay" as host company employees, which includes monetary allowances, overtime or penalty rates and incentive-based payments and loadings.
Failing to comply with the same job, same pay legislation exposes businesses to significant penalties, including fines and potential legal action from employees or unions.
Case law: how the laws are being applied in practice
In a landmark case, the FWC ordered in July 2025 that labour hire workers at BHP Queensland coal mines be paid the same as directly employed workers performing equivalent work. This was upheld by the Federal Court in December.
On January 16, 2026, BHP filed a High Court challenge to overturn the Federal Court’s decision.
The case is a key test of how broadly the laws apply, including to in-house labour hire models, and reinforces the need for employers to carefully assess labour hire arrangements and pay structures.
What do I need to do to comply with ‘same job, same pay’?
Employers who use labour hire workers need to ensure they’re compliant with the laws since they came into effect in November 2024.
Importantly, host companies cannot avoid the same job, same pay laws by entering an alternative arrangement or by hiring other types of workers.
Businesses should review existing labour hire contracts to determine if they are captured under the same job, same pay legislation and are paying labour hire workers correctly.
How Business Law WA can help:
The Business Law WA team can help with:
- Advising on whether there are any potential risks to your business
- Contractual negotiations and drafting agreements
- Wage and remuneration audits
- Representation in the FWC
- Reviewing and updating contracts
Business Law WA provides practical legal advice to ensure your business stays compliant and minimises commercial impacts arising from these changes. Contact the Employment Law team at [email protected] or call 08 9365 7746.
This article is authorised by Business Law WA, an incorporated legal practice and wholly-owned subsidiary of CCIWA. The content of this article is general in nature and is not legal or professional advice and should not be relied upon as such.
