NSW Work Injury Claim

NSW Work Injury Claim

How do workers compensation claims work for labour-hire workers?

A labour-hire worker will usually report the claim to the labour-hire agency that employs and pays them, while also reporting the incident to the host workplace. The agency's insurer generally manages the workers compensation claim, but the host often holds critical evidence about the task, supervision, equipment and incident.

The host may direct day-to-day work without becoming the employer for the compensation claim. A separate claim against another party may sometimes require investigation, but it should not be assumed from host control alone. Workers compensation liability, workplace evidence and any third-party issue must be kept distinct.

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Illustrative editorial scene of a labour-hire warehouse worker and host supervisor reviewing an assignment beside stationary plant.

Practical review

What to check in this situation

  • Identify the legal employer from the contract, payslips, payroll and placement documents rather than the site logo.
  • Report through both the agency and host systems and keep each reference number.
  • Preserve host-site CCTV, induction, SWMS, equipment, witness and supervisor records before they are lost.

Records that may help

Keep the agency contract and payslips, host assignment, rosters, induction records, incident reports, witness details, medical records and correspondence from both organisations.

Next procedural step

Notify the agency insurer and ask both organisations to preserve records; obtain advice where employer identity, host negligence, suitable duties or PIAWE is disputed.

The position in practical terms

Notify both the agency and the host, preserve records held by each, and do not assume the host’s incident report has reached the agency’s insurer. The labour hirer generally continues as employer when its worker is lent or hired out, subject to the statutory terms and the actual contract.

Decision factors and useful evidence

FactorWhy it mattersUseful evidence
Who engaged and paid the workerThe agency contract and payroll usually identify the labour hirer, but related entities and subcontracting chains may complicate the position.Agency contract, payslips, bank deposits, onboarding emails and ABN/ACN details.
Who controlled the site taskThe host may hold the best evidence about the incident, system of work and witnesses even where it is not the compensation employer.Host induction, supervisor messages, task allocation, CCTV, SWMS and incident report.
The labour-supply arrangementSchedule 1 contains rules about workers lent or hired out and certain contractors under labour-hire service arrangements. Labels should not replace analysis of the arrangement.Assignment notice, agency-host agreement if obtainable, timesheets approved by the host and placement records.
Post-injury work and suitable dutiesThe agency and host may each say the other must arrange duties. The claim should record what work was genuinely identified and available.Certificates of Capacity, agency return-to-work contact, host response and written duty proposals.

Which employer or insurer may be involved

  • The labour-hire agency will often be the employer and claim contact, while the host may be responsible for site reporting and evidence. Confirm rather than assume.
  • Send the injury notice and Certificates of Capacity to the agency and retain proof; also notify the host so its records can be preserved.
  • If there are several agencies or a subcontracting chain, record each legal entity and ask the insurer to state the basis on which it accepts or disputes responsibility.

Evidence checklist

  • Agency engagement contract, assignment notice, payslips and approved timesheets.
  • Host induction, site access log, supervisor details and task instructions.
  • Incident reports made to the host and agency, plus proof of submission.
  • CCTV preservation request, photographs, SWMS, plant records and witness contacts.
  • Certificates of Capacity, treatment records and written restrictions.
  • Agency and host suitable-duties communications.
  • Claim number, insurer correspondence and any denial about the correct employer.

Earnings and PIAWE issues

  • Agency payslips and host-approved timesheets should be reconciled. Missing assignments, penalties, overtime or allowances can affect the earnings record used for PIAWE.
  • If the worker held another job at the date of injury, preserve that employer’s earnings separately. Do not merge gross earnings from different jobs before applying the statutory calculation.

Reporting and jurisdiction

  • A host report may satisfy an internal safety process but still not reach the agency’s insurer. Notify the agency directly and keep the email or claim reference.
  • If the placement crossed state borders, the NSW state-of-connection test may require review of where the worker usually worked, was based, and the employer’s principal place of business.
  • Obtain documents early because host CCTV, access logs and assignment records may be overwritten after the placement ends.

Common reasons for dispute

  • The agency and host each say the other entity employed the worker or should handle the claim.
  • The host disputes the task, incident or instructions because its report is incomplete.
  • The insurer calculates PIAWE from incomplete agency payroll or excludes host-recorded overtime.
  • Suitable duties are described in general terms but neither the agency nor host confirms a real placement.

Practical next steps

  1. Notify both agency and host and request a claim number from the agency’s insurer.
  2. Save the assignment, timesheets, roster, induction and all host-system evidence.
  3. Ask the host in writing to preserve CCTV and incident material.
  4. Require any suitable-duties proposal to identify the workplace, hours, tasks and supervision.
  5. Get advice if the entities dispute employer status, insurer responsibility or cross-border coverage.

Illustrative example

A host-site forklift incident with two reporting systems

An agency worker is struck by a pallet at a host warehouse. The host completes a safety report and sends the worker home. The agency later says it was not notified until the medical certificate arrived, while the host’s CCTV retention period is about to expire.

  • The worker should notify the agency directly and preserve proof, while immediately asking the host to retain CCTV and incident records.
  • The assignment, host supervision and agency payroll establish the two relationships that need to be understood.
  • The claim and the host safety investigation are related but not the same process.
  • This example does not decide liability or identify the employer without the actual documents.

Common questions

Do I claim against the labour-hire agency or the host?

The agency will often be the employer for compensation purposes, but the statutory arrangement and contracts must be checked. Notify both and ask the insurer to confirm its position.

What if the host has the CCTV and witnesses?

Ask the host promptly in writing to preserve the material and identify witnesses. The agency and insurer should also be told that the evidence is held by the host.

Who should provide suitable duties?

That depends on the actual arrangement and available work. Any proposal should identify a real site, tasks, hours and controls rather than simply referring to “light duties”.

Can the agency end my placement after injury?

The end of a placement does not itself decide workers compensation entitlement. It may create separate employment and suitable-work issues that require fact-specific advice.

Related guides

Unsure whether your work arrangement is covered?

Send the contract or engagement records, a short injury chronology and any insurer decision. We can assess the workers compensation issue and whether an ILARS funding application may be available, subject to eligibility, merits and IRO approval.

Request a free claim checkCall (02) 7233 3661

Legal service provider

NSW workers compensation help from Stephen Young Lawyers

NSW Work Injury Claim is the workers compensation service of Stephen Young Lawyers. Stephen Young Lawyers provides the legal service. Stephen Young Lawyers.

Stephen Young Lawyers was established in 2012. The firm is led by Stephen Young, Principal Solicitor and Accredited Specialist in Personal Injury Law.

Workers across New South Wales can arrange telephone or video appointments. In-person appointments can be arranged at the Sydney office when appropriate.

NSW Work Injury Claim enquiries: (02) 7233 3661

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NSW Work Injury Claim
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Key legal sources

This information is general in nature and is not legal advice. You should obtain advice about your own circumstances.

This page provides general information about NSW workers compensation. It is not legal advice. Worker status, jurisdiction and entitlement depend on the actual relationship, evidence and law applying to the claim.

Primary sources