What Is A Labour Hire Company?
A labour hire company is very much in vogue nowadays. We often hear the term “labour hire company”, but in today’s article, we will discuss it in a detailed format and help you have a better understanding about a labour hire company. A labour hire company is a third party to whom an employer outsources his business recruitment process. The labour hire company takes care of the whole hiring process which includes payroll, superannuation, tax and everything else. They also ensure that the workers they provide to the client companies to meet the client company' expectations and satisfies them. The workers are employed by the labour hire company and then 'leased' to the client company for a specific period.
The system of labour hiring is beneficial for both the employer and employees. A labour hire company is extremely beneficial for the mining and construction industries. Not only this, the entire process of labour hire is both cost-effective and time-saving as the client company does not have to waste time in recruitment. Another advantage of a labour hire company is that the workers they provide are of high quality and match the client company's prerequisites.
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Advantages of using a labour hire company:
Using a labour-hire company gives greater flexibility to the company, whether it is bigger in foundation or smaller in growth. You can hire labourers according to your company’s need and demand. If you do not need many labourers at a specific time, you can inform the labour hire company. As a result, the company’s money won’t be unnecessarily wasted. On the other hand, if the company suddenly needs a huge supply of labourers, they can inform the labour-hire company and get the needful amount of labourers as per the needs.
- Most companies need extra labourers during their peak season. But during the rest of the year, the extra labourers have little or almost no work. During such situations, labour hire companies can be beneficial. They can hire labourers as per your requirement. The client company is not committed to the workers. The entire responsibility lies in the labour hire company.
- The entire process of recruitment is lengthy and time-consuming. It involves an entire HR team which advertises for recruitment, checks CVs, interviews candidates, checks references and backgrounds. A lot of time and energy is wasted in the process. Using a labour hire company is the best option. The client company just pays the labour hire company and the rest of the formalities is done by them.
- The labour hire company files all the paperwork and all payment questions are answered by them. The labour hire company may seem to to be an expensive task, but the amount of work they do for the client company makes up all the expenses.
Difference between a Recruitment Company and a Labour Hire Company:
- A recruitment company matches individuals looking for jobs with the ones looking to hire labourer’s. They are mainly responsible for performing the work of HR. The candidate gets hired as a full employee of the client employee once the recruitment process is over. The labour hire company on the other hand just provides labours to the client company on a short term or long-term basis. The labour is not a full employee of the client company.
- The selected candidate through a recruitment company is a direct employee on the company’s payroll whereas the selected candidate through a labour hire company is not a direct employee and the payroll is maintained by the labour hire firm.
We believe today’s informative article has been helpful for both employers and employees who want to get help from a labour hire company. The article has cleared every doubt about the difference between a recruitment company and a labour hire company.
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