With labour hire, another business employs the worker and supplies them to you. With a recruitment agency, the agency finds the candidate and you employ them directly. CrossNation is a recruitment agency, not a labour hire provider, so it does not supply workers. Licensing and pay rules differ between the two.
By CrossNation Editorial Team. Sources checked 4 October 2026.
Labour hire providers are businesses that supply workers to other businesses. To operate legally in Victoria, providers must be licensed, and serious penalties apply to unlicensed providers.
Source: Labour Hire Authority (Victoria) (retrieved 4 October 2026)
A business that is supplied workers must use licensed labour hire providers.
Source: Labour Hire Authority (Victoria): Fact sheet (retrieved 4 October 2026)
A business needs a labour hire licence if it provides workers directly to carry out work for someone else, the host, as part of the host's business.
Source: SA.GOV.AU: Who needs a labour hire licence (retrieved 4 October 2026)
Licensing started with five industries (horticulture processing, meat processing, seafood processing, cleaning and trolley collection) and was expanded to all industries from 29 January 2026.
Source: Legal Services Commission of South Australia: Employment and labour hire workers (retrieved 4 October 2026)
When a regulated labour hire arrangement order is in force, the employer supplying a regulated employee to the regulated host must pay at least the protected rate of pay for the work the employee performs for the host.
Source: Fair Work Commission: Regulated labour hire arrangement orders (retrieved 4 October 2026)
In a labour hire arrangement, one business employs a worker and sends them to work for another business, the host, as part of the host's operations. South Australia's regulator describes it as a business that provides workers directly to carry out work for someone else. The host pays the provider, and the provider pays the worker. The worker's employer is the provider, not the host.
A recruitment agency finds and shortlists candidates for a role. The employer interviews, makes the offer and employs the person. CrossNation is a recruitment agency, not a labour hire provider, so it does not supply workers. It works this way: the employer tells us the role, location and start date, we search candidates already in Australia and sponsorship-ready overseas candidates, and we send a shortlist. The fee is 12% of the candidate's annual salary, charged only when a placement succeeds, with a 90-day placement guarantee.
Several states license businesses that supply workers. In Victoria, labour hire providers must hold a licence and a business that uses supplied workers must use licensed providers. South Australia started licensing in five industries, including cleaning and meat and seafood processing, and expanded the scheme to all industries from 29 January 2026. If you only use a recruitment agency and employ the person yourself, a supply licence is not the question, but the dividing line can be fine, so check your own arrangement with the regulator or an adviser.
Under a regulated labour hire arrangement order made by the Fair Work Commission, an employer that supplies a worker to a regulated host must pay at least the protected rate of pay for the work done for that host. Separate from that, an employee you hire directly is covered by the award or enterprise agreement that applies to your business. Either way, work out the full employment cost, including superannuation, before you compare the two options.
If you need a person who will be part of your team for a year or more, a recruitment placement is usually the better fit, because you build the employment relationship yourself. If you need cover for a few weeks, a licensed provider may fit better. Many employers use both for different needs. Tell us the role and the time frame, and we will say plainly whether a recruitment placement is the right service.
| Question | Labour hire | Recruitment agency (CrossNation) |
|---|---|---|
| Who employs the worker? | The labour hire provider | You, the employer |
| What do you pay? | The provider's charge for supplying the worker | The worker's salary to the worker, plus a fee of 12% of annual salary to CrossNation, charged only when a placement succeeds |
| Does the agency hold a supply licence? | Required in states with a licensing scheme, such as Victoria and South Australia | CrossNation is not a labour hire provider and does not supply workers |
| Typical use | Short cover and peaks | Permanent and contract roles you want on your own payroll |
The fee is 12% of the candidate's annual salary, charged only when a placement succeeds.
No. CrossNation is a recruitment agency. It finds and shortlists candidates and does not employ or supply workers.
Labour hire providers charge for the supplied worker. CrossNation's fee is 12% of the candidate's annual salary, charged only when a placement succeeds, with a 90-day placement guarantee.
Victoria and South Australia are two that do, and the sources above describe their schemes. Check the regulator in your state, because the rules and the industries covered differ.
The orders apply to employers that supply workers to a regulated host. A worker you hire and employ directly is paid under your own award or agreement. Take advice if your arrangements blur the two.
Yes, where the role suits. CrossNation shortlists sponsorship-ready overseas candidates, but the employer sponsors and visa decisions sit with Home Affairs. See the overseas hiring guide. This is general information, not migration advice. Speak to a registered migration agent.
