[2025] FWC 2711
General information, not legal advice.
Fair Work Commission
2025-09-12
Original judgment source is linked above.
s.306E - Application for a regulated labour hire arrangement order
Applications for regulated labour hire arrangement orders - s.306E(2) - whether it is not fair and reasonable in all the circumstances to make the proposed orders -- form of order.
306E FWC may make a regulated labour hire arrangement order
(1) The FWC must, on application by a person mentioned in subsection (7), make an order (a regulated labour hire arrangement order) if the FWC is satisfied that:
(a) an employer supplies or will supply, either directly or indirectly, one or more employees of the employer to perform work for a regulated host; and
(b) a covered employment instrument that applies to the regulated host would apply to the employees if the regulated host were to employ the employees to perform work of that kind; and
(c) the regulated host is not a small business employer.
Note: The FWC may make other decisions under this Part which relate to regulated labour hire arrangement orders: see Subdivisions C (short‑term arrangements) and D (alternative protected rate of pay orders) of this Division, and Division 3 (dealing with disputes).
(1A) Despite subsection (1), the FWC must not make the order unless it is satisfied that the performance of the work is not or will not be for the provision of a service, rather than the supply of labour, having regard to the matters in subsection (7A).
(2) Despite subsection (1), the FWC must not make the order if the FWC is satisfied that it is not fair and reasonable in all the circumstances to do so, having regard to any matters in subsection (8) in relation to which submissions have been made.
(4) For the purposes of paragraph (1)(b), in determining whether a covered employment instrument would apply to the employees, it does not matter on what basis the employees are or would be employed.
Regulated employee and host employment instrument
(5) An employee referred to in paragraph (1)(a) is a regulated employee.
(6) The covered employment instrument referred to in paragraph (1)(b) is a host employment instrument.
(7) The following persons may apply for the order:
(c) an employee organisation that is entitled to represent the industrial interests of an employee mentioned in paragraph (a) or (b);
Matters that must be considered in relation to whether work is for the provision of a service
(7A) For the purposes of subsection (1A), the matters are as follows:
(a) the involvement of the employer in matters relating to the performance of the work;
(b) the extent to which, in practice, the employer or a person acting on behalf of the employer directs, supervises or controls (or will direct, supervise or control) the regulated employees when they perform the work, including by managing rosters, assigning tasks or reviewing the quality of the work;
(c) the extent to which the regulated employees use or will use systems, plant or structures of the employer to perform the work;
(d) the extent to which either the employer or another person is or will be subject to industry or professional standards or responsibilities in relation to the regulated employees;
(e) the extent to which the work is of a specialist or expert nature.
(8) For the purposes of subsection (2), the matters are as follows:
(a) the pay arrangements that apply to employees of the regulated host (or related bodies corporate of the regulated host) and the regulated employees, including in relation to:
(i) whether the host employment instrument applies only to a particular class or group of employees; and
(ii) whether, in practice, the host employment instrument has ever applied to an employee at a classification, job level or grade that would be applicable to the regulated employees; and
(iii) the rate of pay that would be payable to the regulated employees if the order were made;
(c) the history of industrial arrangements applying to the regulated host and the employer;
(d) the relationship between the regulated host and the employer, including whether they are related bodies corporate or engaged in a joint venture or common enterprise;
(da) if the performance of the work is or will be wholly or principally for the benefit of a joint venture or common enterprise engaged in by the regulated host and one or more other persons:
(i) the nature of the regulated host's interests in the joint venture or common enterprise; and
(ii) the pay arrangements that apply to employees of any of the other persons engaged in the joint venture or common enterprise (or related bodies corporate of those other persons);
(e) the terms and nature of the arrangement under which the work will be performed, including:
(i) the period for which the arrangement operates or will operate; and
(ii) the location of the work being performed or to be performed under the arrangement; and
(iii) the industry in which the regulated host and the employer operate; and
(iv) the number of employees of the employer performing work, or who are to perform work, for the regulated host under the arrangement;
(9) A regulated labour hire arrangement order must specify:
(b) the employer covered by the order under this section; and
(c) the regulated employees covered by the order under this section; and
(d) the host employment instrument covered by the order; and
(e) the day the order comes into force, which must be:
(i) if the order is made before 1 November 2024 - that day or a later day; or
(ii) otherwise - the day the order is made or a later day.
Note: For paragraphs (b) and (c), additional employers and regulated employees of those employers may be covered by the order under section 306EA.
The regulated employees covered by the order are employees of the Employers, who;
The submissions made by Skilled assume that it is possible for the Commission to make a regulated labour hire arrangement order under s 306E which applies to some, but not all, employees supplied to perform work for the regulated host. It is not clear to us that the assumption is correct. Section 306E(1) requires the Commission to make an order if the circumstances in that subsection are met. The prohibitions in s 306E(1A) and (2) then set out circumstances in which the Commission must not make "the order". The language suggests that either the Commission must make an order applying to the regulated employees or it must not. However, it is not appropriate for the Full Bench to express a view about that question given the conclusions we have reached.
The reach of the order covers the employees who are currently supplied, provided it - if, in the future, it also covers maintenance employees, in my submission that would be permissible. All that is required is that the Commission reach a certain state of satisfaction about the employees who are supplied or will be supplied, which necessarily imputes a degree of determinism. It does not require to reach a state of absolute certainty about the employees who are subject of the application or the order. All that is required is that it reach a state of satisfaction having regard to the material before it.[44]
General principles - s.306E(2) and (8) - 'fair and reasonable'
Pay arrangements that apply to employees of the regulated host and the regulated employees - 306E(8)(a)
History of industrial arrangements applying to the regulated host and employers- 306E(8)(c)
Relationship between the regulated host and the employers- 306E(8)(d)
Terms and nature of the arrangement under which the work will be performed - s.306E(8)(e)
Form of order and the regulated employees issue
[26] .... The substance of the submission advanced by BHP and the OS Parties is that the regulated employees the Commission is able, and required, to specify as being covered by a regulated labour hire arrangement order must be narrowly confined to the particular set of duties undertaken by employees which are subject of evidence in the proceedings, or the precise roles being then undertaken by regulated employees at the time the order is made. That is, in our opinion, to take a too narrow view of the intended operation of s 306E and demands a degree of granularity in the description of the regulated workers which is not required by the provisions.
[27] Section 306E(1)(a) establishes, as a precondition to an order being made, that the Commission must be satisfied that an employer supplies, or will supply, employees to perform work for the regulated host. However, the focus in s 306E(1)(b) then changes to ask whether a covered employment instrument would apply to those employees if the regulated host were to employ the employees to perform work of that kind. The subsection does not ask whether the covered employment instrument would apply to the employees if they were employed to perform the same work but, rather, refers to the same kind of work. In our view, the reference to a "work of a kind" is intended to incorporate a broad description of the kind of work being undertaken rather than a narrow set of specific duties, tasks or responsibilities....
[29] Further, as we have observed, the Revised Explanatory Memorandum indicates that "[t]he orders are intended to be broad and to cover employees engaged to work as part of the regulated labour hire arrangement after the order is made" when referring to s 306E(9). That suggests the focus of an order is intended to be work performed as part of the same regulated labour hire arrangement, rather than a precise set of particular duties, tasks or responsibilities which, if the submissions of BHP and the OS Parties are accepted, would need to be recorded in every regulated labour hire arrangement order.[57]
In the circumstances of this matter, the orders should expressly specify that the regulated employees covered are those to whom the BMA Agreement would apply if they were employed by BHP Coal. That form of drafting draws in the coverage provisions of the BMA Agreement and specifies the employees covered by the orders in a manner which can be readily ascertained and tested.
[23] Second, as the MEU points out, FES does not suggest it currently has any concrete plan to provide services to Boggabri Coal other than as a labour hire provider. FES says no more than that it must consider potential diversification opportunities having regard to the legislative changes that have taken place. There is, at present, no more than the most speculative possibility that FES will ever provide services to Boggabri Coal beyond the provision of labour. In our opinion, it is not appropriate to frame the form of the regulated labour hire arrangement order by reference to what is no more than a speculative possibility.
[24] If FES were to change its business and, in the future, provide services at the Boggabri Mine rather than supplying labour, a number of issues may arise. If, as part of those services, employees of FES perform work at the Mine, those workers may or may not be 'regulated employees' for the purposes of s 306E(1)(a) and (5) depending on whether it could be said that the employees were supplied to perform work for Boggabri Coal. The relevant covered employment instrument may or may not apply to the employee if the employee were directly employed by the regulated host. The answer to those questions is likely to depend on the nature of the services provided and the arrangements under which the services are performed. It is not possible to consider that question in the hypothetical.
[25] If, in the future, some uncertainty does arise in relation to the coverage of the order, or it is contended that the order applies to employees who should be excluded from its operation, the Commission could vary the order....
Skilled then submits that any employees of Skilled must be excluded if the employees perform work in respect of Skilled's provision of services to Bengalla in the future within the meaning of s306E(1A). It is not suggested that Skilled's employees performing work for Bengalla do perform work for the provision of a service, or that there is any proposal or likelihood of Skilled providing a service in the future. There is no evidence Skilled provides services, as opposed to supplying labour, as part of its business at all. We do not think it is necessary, or appropriate, to make this provision in circumstances in which there is no identified prospect of the eventuality ever occurring. The proposed exclusion would introduce uncertainty and a lack of clarity in the order which Skilled says must be avoided.[65]
In-person at the Fair Work Commission, Brisbane on Wednesday, 11 June 2025.
[7] Appendix 1 and exhibit W1 at [48].
[11] See also exhibit A2 at [7]-[8].
[12] Ibid at [14] and exhibit A2 at [11].
[39] See Batchfire, Application by Mining and Energy Union re Boggabri Coal Mine [2024] FWCFB 415 at [13] and Applications by The Australasian Meat Industry Employees Union [2024] FWCFB 388 at [12] for analogous facts in relation to the conduct of the business of the Labour Hire Employers.
[43] Submissions in Reply at [12] and see Exhibit W1 Annexure CH3.
[59] See also CQS Submissions at 22(c).
[63] Application by Mining and Energy Union re Boggabri Coal Mine [2024] FWCFB 415 at [22].
[66] Alcan (NT) Alumina Pty Ltd v. Commissioner of Territory Revenue [2009] HCA 41; (2009) 239 CLR 27 at [46], Project Blue Sky v. Australian Broadcasting Authority (1998) 194 CLR 255 at 384.
[67] See Bengalla, Boggabri, op cit. See also Applications by Mining and Energy Union re Maules Creek Pty Ltd [2025] FWC 1499, Applications by the Mining and Energy Union re Bulga Open Cut Mine [2025] FWC 1273 and Applications by Mining and Energy Union re Mangoola Open Cut Coal Mining Operation [2025] FWC 2190.
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(2009) 239 CLR 27
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