Future Phases

Phase 2 – Labour Hire Services

On 7 October 2022, as part of the development of People Panel Phase 2 (Labour Hire Services), Finance published an Industry Consultation Paper on AusTender to seek feedback from labour hire providers on key concepts for inclusion in the scope of services for Phase 2, including service categories and pricing mechanisms, as well as general feedback regarding the provision of labour hire services.  The consultation period closed on 21 October 2022.

Finance published a Request for Tender (RFT) for the People Panel Phase 2 (Labour Hire Services) through AusTender on 9 November 2022. The RFT closed on 19 December 2022 and responses are currently being evaluated - successful and unsuccessful Respondents will be advised of the procurement process outcome in due course. Phase 2 is scheduled to commence mid-2023, and guidance material for entities will be made available in the near future. Finance will work with entities regarding transitioning existing arrangements.

The Services that will be available under Phase 2 (Labour Hire Services) will be:

  • Labour Hire Workers to perform work for an Entity for a defined period of time
  • Conversion of labour hire workers in a relevant position to be a directly engaged Entity employee
  • Introduction Services, where the Service Provider introduces to the Entity an APS employee from another entity
  • Placement Services, where the Service Provider facilitates the sourcing of a candidate for a non-ongoing APS position of employment.

For the purposes of the People Panel, Labour Hire is defined as a “triangular employment arrangement”, involving three parties: a worker supplying labour; an Entity; and an intermediary, such as a Labour Hire Supplier (see Diagram 1).

In the ‘standard’ form of this arrangement, the Entity engages a Labour Hire Supplier to provide them with labour (a Labour Hire Worker). The Labour Hire Supplier then contracts a Labour Hire Worker (via an employment agreement) to provide that labour and is responsible for paying the Labour Hire Worker and making all statutory Employment On-cost payments.

In a labour hire arrangement, the Labour Hire Worker has no direct employment contract with the Entity.

Diagram 1: Labour Hire Definition

The Services available for Phase 2 will not include provision of Labour Hire Workers for:

  • ICT roles (roles commonly listed in the ICT and Digital Solutions job family)
  • Resources and construction roles (including industrial, agricultural, infrastructure, mining, forestry, fisheries, maritime, meatworkers, manufacturing, textiles, building roles)
  • Military engineering roles
  • Statutory Appointments
  • Non-Statutory Appointments (for example Audit committee and consultative committees)
  • Learning and development roles
  • Other WoAG coordinated procurements such as legal services and property services
  • Consultants as defined in RMG423 (Procurement Publishing and Reporting Obligations (RMG 423) | Department of Finance); and
  • Recruitment of permanent and non-ongoing Australian Public Service employees, other than the provision of Introduction and Placement Services.

Phase 3 of the People Panel (Professional Contractor Services) is under development. The scope of services for Phase 3 will be made following stakeholder engagement activities.

The high-level definition of a Professional Contractor is a person who performs a specialised role for a short and fixed term. 

Further information on the People Panel including future phases will be made available as it progresses.

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