Labour Agency Contracting
Labour hiring is a legitimate part of the range of options for a business to acquire its needed workforce skills requirements. It can be used as an alternative to direct employment totally, to meet short term needs, or as a structured approach to provide the necessary skills during busy periods while maintaining a core of permanent workers to cover minimum workforce requirements and jobs which require in house experience.
We are a licenced business operating a unique type of "labour hire" known as the "ODCO" system.
Where we differ from other labour hire businesses, is that the workers we provide are not our employees. They are self employed contractors. We are not their employers, we are their agents.
This creates significant benefits for our client businesses:
- As there is no employer/employee relationship anywhere, the whole host of industrial laws, such as the Federal Workplace relations act (including the application of Awards etc), Annual Holidays Act, Long Service Leave Act, do not apply. The laws that apply are the common law principles of fair contracting.
- As almost all employee conditions have there conditions of employment governed by Awards, EBA's or AWA's, their wages are almost always expressed as hourly or weekly rates and overtime penalties. It is extremely difficult to have employee wages expressed as "piece rates" This is not the case with contractors. Therefore it is easier (provided unfair contracts are not created) to arrange pay rates in a way to maximise workforce productivity and ensure labour costs are more closely aligned to business needs, giving more certainty on the labour cost as a proportion of business turnover.
- As contractors are self employed and are all on daily renewable contracts, it is easier, if operated properly, to develop and maintain better work attitudes within your workforce. This also adds to the productivity (profitability) of your business.
For an explanation of the ODCO system, see the attached information at attachment 2
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Industrial Relations Resolution Methodology
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The Benefits of Agency Contracting
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