If you’re wondering “what is a labour hire company and how do I find one?”, you’re in the right place. The short answer? If you are finding it hard to find reliable, cost-effective human resources, a labour hire company can bridge this gap by tapping into skilled employees who can ensure your project runs smoothly and stays on schedule.

How to Evaluate a Labour Hire Company

Whether you’re hiring for construction workers or electrical engineers, a good team can make or break the success of a project.  When deciding who to trust with your labour hire, make sure you’ve vetted the company well.  Here’s a list of what you should review:

Licensing and Compliance Checks

Every state and territory in Australia has different labour hire licensing requirements. Make sure you check that the company is licensed in your state and complies with all federal employment laws. This also extends to checking that their labour has up-to-date licences for industries such as construction, manufacturing, engineering, and more.

Reputation and References

A labour hire company’s reputation offers a clear insight into how reliable and professional it is.

Here’s how to check out a company’s reputation:

✔️ Check online reviews
✔️ Look for customer testimonials on their website
✔️ Ask for client references.
✔️ Look for a proven track record of happy clients on similar projects.

A trustworthy company would deliver consistent performance across your industry. Speaking directly with past clients can help you gauge the calibre of a company’s workers.

Expertise in Your Specific Industry

A company with true industry expertise will know how to match skilled labour to your project. There are two parts to checking this:

• Does the company specialise in your industry?
• Can they provide workers experienced in your specific project type?

Transparent Pricing and Contracts

Transparency in pricing builds trust and prevents disputes down the line. Look for a clear outline of all costs, including hourly rates, overtime, allowances, and any additional fees. Avoid vague quotes. Always ask for a written contract or Service Level Agreement (SLA) that outlines payment terms and the scope of service.

Trial Periods and Service-Level Agreements

Carefully review all terms for trial periods and the final service-level agreement (SLA). At a minimum, SLAs should outline the following:

• Scope of service
• Rates and payments
• Quality standards
• Insurance, liability and indemnification information
• Dispute resolution and reporting mechanisms
• Terms of termination or extension of the contract

A red flag in SLAs is unclear job descriptions and responsibilities. Being specific ensures that your business gets the right candidate who can meet your project requirements.

Questions to Ask

Before you choose a labour hire company, ask the following questions and check if the answers align with your requirements:

• Are they up-to-date with all state and federal licensing and compliance requirements?
• How do they maintain ongoing communication with their clients?
• What is their screening and recruitment process? Do they perform background checks on their labour?
• Do they check that workers’ licenses are up to date?
• Do they provide ongoing training and onboarding for new hires?
• Do they subcontract?
• Clarify payment terms, insurance coverage, and how they handle disputes or worker replacements.
• How do they maintain employee records? Can your business review the feedback that the worker received on previous jobs?
• Are the workers part of a union?

Labour Hire vs Direct Hiring: Which is Right for Your Project?

Often, people wonder whether it’s better just to hire directly rather than work with a labour hire company. The right choice depends on your project’s duration, the skill set needed, and your capacity to hire and manage employees.

Pros and Cons of Labour Hire

Labour hire allows businesses to access skilled workers on a temporary or project basis without any long-term obligations. This flexibility is ideal for short-term projects, seasonal demand spikes, or when specialised skills are required quickly.

Pros	Cons
Flexible and quick access to skilled, experienced and vetted workers Scale your workforce up or down according to project demands Reduces administrative responsibilities	Less control over company culture Possible risk if the company subcontracts without your knowledge

Pros and Cons of Direct Hiring

Direct hiring (or permanent recruitment), on the other hand, involves recruiting employees to your team on a permanent basis.

Pros	Cons
Someone who will learn your business, work culture, and quality control inside out Full control over the hiring process, training, performance, and development	Recruitment is time-consuming and costly Your business takes on all the responsibilities of a new employee. Scaling your team quickly for short-term projects can also be challenging Possibly working with a smaller candidate pool, looking for full-time, stable work

Why Trust Matters When Hiring Labour for Projects

With labour hire, you’re not just filling roles. You’re trusting a partner to maintain your project’s timelines, safety standards, and overall business reputation. Working with a trustworthy labour hire partner means you get cost-effective staffing solutions, skilled workers, and reliable service at the right time. The right workforce will also prevent costly mistakes or compliance errors in your project.

Consistent communication and transparency are the first indicators of a reliable professional relationship. A trustworthy labour hire company like People 2U can find the right fit for your industry and can help protect your business’ brand reputation.

Make the Right Choice for Your Workforce

At the end of the day, a reliable labour hire partner is a key part of your project’s success. By knowing how to find a trustworthy labour hire partner, you can protect your business and your project.

People 2U cares about creating solutions that make a difference to your business. Our strong and professional team of recruitment experts can deliver the right people to you at the right time. Enjoy a simple labour hire process by the people who understand you. We provide labour hire solutions all over Australia. Contact us today to get started.