Position Not for Hire: Labour Hire and Business Services in the 186 Direct Entry Stream

Direct Entry nominations have an extra rule: if the employer hires out workers to other businesses, the nominated position must be in the employer’s own business, not on-hired to an unrelated business. This position not for hire rule does not apply to the TRT stream. On-hire businesses may be able to use a labour agreement instead.

What on-hire means

On-hire means supplying workers to clients for a fee, usually for short assignments, with the client’s staff directing and supervising the work. A position like this cannot be nominated in the Direct Entry stream. An internal role at the on-hire business, such as a payroll officer, can be.

---

Business services are different

Not every placement at a client’s site is on-hire. The Department’s instructions describe business services as work for another entity under a contract for service, with the employer keeping direction and control, even on the client’s premises. Examples include an IT company placing a project team at a client, or an accounting firm doing an external audit. Typical features are:

1. a formal contract between the provider and the client;
2. a specific project or service for a set period;
3. the provider decides how many staff, which staff and who does what;
4. the provider manages the project within agreed parameters;
5. payments tied to delivery, progress or a regular service fee.

---

Side by side

Feature	On-hire	Business services
Contract	Supplying personnel to the client	Delivering a defined project or service
Control of the work	Split, with the client directing day to day	The employer keeps full control
Payment	Timesheets and hourly invoices	Progress or periodic payments for delivery
Typical roles	Anything from trades to managers	Usually skilled ICT or consulting roles

For the wider control test, see the direct control test for 186 nominations.

---

What you should do now

• Review your client contracts: check whether they supply staff or deliver a defined project or service.
• Show who directs the work: provide project plans, reporting lines and supervision arrangements.
• Internal roles: if you are an on-hire business, nominate positions that sit within your own operations.
• Consider a labour agreement: if your model is on-hire, ask us about the on-hire labour agreement.