Alternative protected rate of pay orders

A regulated labour hire arrangement order requires labour hire employees working for a host employer to be paid at least the same rate of pay as employees of the host employer who are doing the same kind of work (the protected rate of pay).

The protected rate of pay is set by the host employment instrument covered by the regulated labour hire arrangement order, but sometimes it may be unreasonable to use the pay rates in that instrument for certain employees (for example, if the rates are too low or too high).

When that happens, we can make an alternative protected rate of pay order where the protected rate of pay for certain employees is based on a different (alternative) employment instrument.

We can only make these orders if someone applies asking us to do so.

You can apply for an alternative protected rate of pay order if you are:

• a regulated employee, employer or regulated host covered by, or potentially covered by, a regulated labour hire arrangement order, or
• an organisation (such as a union or employer association) that can represent any of those people or businesses.

We can make an alternative protected rate of pay order if:

• it would be unreasonable for the employer to pay at least the protected rate of pay specified in the host employment instrument (for example, if the rate would be too low or too high) and
• there is a relevant alternative employment instrument that covers the regulated host or a related body corporate.

The alternative instrument we use must:

• apply to a related body corporate of the regulated host and its employees performing work of the same kind, or
• apply to the regulated host and its employees performing work of the same kind, in circumstances that do not apply to the regulated employee.

An order must specify how the employee’s rate of pay is to be calculated. The rate of pay must be the protected rate of pay that would apply if the alternative instrument was the host employment instrument.