A labour hire worker is someone who enters into a work contract with a labour hire agency. The labour hire agency has a commercial contract to supply labour with a host firm. The worker performs work for the host firm. The host firm pays the labour hire agency, and the labour hire agency then pays the worker. The worker has no contract with the host firm and as a result cannot make an unfair dismissal claim against the host firm. An example of this is a nurse working for a nursing agency.
This arrangement is set out in the diagram below, adapted from Stewart’s Guide to Employment Law:
Labour hire agency
Performance of work
In some situations the labour hire agency and the host employer may be related entities. If this is the case, the host employer may be found to be the employer, regardless of the contract for work with the labour hire agency.
 A Stewart, Stewart’s Guide to Employment Law (4th ed, 2013) at p. 69.