12Labour hire arrangements

12 Labour hire arrangements For this Act, an individual is taken to be a worker employed by a person (the labour hirer) if— (a) the individual has been engaged by the labour hirer under a contract for services to work for someone other than the labour hirer; and (b) there is no contract to perform the work between the individual and the person for whom the work is to be performed; and (c) the individual personally does part or all of the work; and (d) if the labour hirer is a corporation—the individual is not an Note 1 This section does not make an employment agent the employer of those for whom the agency finds work if the workers are engaged directly by the person for whom the work is to be performed. It makes the labour hirer the employer only if there is no contractual relationship between the worker and the person for whom the work is to be performed (see par (b)). Note 2 Under s 13 (Subcontracting), the person for whom the work is to be performed may be liable as ‘principal’ to pay compensation to the worker, as well as the labour hirer under this section. The ‘principal’ may then recover compensation from the labour hirer (see s 13 (3)). See also note 3 at the beginning of this chapter.