Labour hire workers performing work for New South Wales councils will have their pay and conditions protected under legislative reforms that will be introduced by the Minns Labor Government.
Currently, NSW councils can undercut pay and conditions of their existing workforce by entering into a labour hire arrangement.
There is nothing stopping council park, maintenance or road workers, and many others, being replaced with a labour hire workforce doing the exact same job at the same place and same time, but on lower pay and conditions.
Under reforms announced by Premier Chris Minns at the United Services Union’s Annual Conference last night, the Government will introduce legislation to ensure all local government workers receive the same protections.
A council will not be able to enter into or amend a contract with a labour hire business for the supply of labour unless it is satisfied that each employee will receive at least the full rate of remuneration they would receive if employed directly by the council.
This will include applicable overtime and penalty rates, incentive-based payments and bonuses.
These reforms address a regulatory gap that means workers engaged by councils through labour hire businesses are some of the only workers in the country not provided pay and conditions protections.
They recognise that when councils have legitimate reasons to use labour hire firms over hiring staff in-house, these workers should receive the same renumeration for doing the same job.
This reform builds on the Minns Labor Government’s investment in the local government workforce, which includes directly funding the recruitment of an additional 1,700 apprentices, trainees and cadets in councils across the state, through the Fresh Start program.
The Government will introduce the Local Government Amendment (Labour Hire) Bill 2026 to Parliament next month to bring in these important protections for workers.
Minister for Industrial Relations Sophie Cotsis said:
“These reforms strike the right balance in giving councils the flexibility they need while making sure workers aren’t short-changed simply because they’re employed through labour hire.
“Two people doing the same job side-by-side deserve the same pay, no matter who is paying them.
“This is about a fair go for workers, a level playing field for employers and confidence in the local government workforce.”
Minister for Local Government Ron Hoenig said:
“Council workers deserve a fair go. People doing the same work for the same council should not be paid less simply because they are employed through a labour hire company.
“NSW councils sit outside the national Fair Work system, so we are acting to make sure local government workers have proper protections.
But this is also about how we build stronger councils.
“Wherever possible, councils should be providing secure jobs rather than relying on labour hire to deliver the work communities depend on.
“Direct employment builds skills and experience inside councils. It provides more secure local jobs and gives councils greater capacity to deliver services and infrastructure themselves.
“More people employed directly by councils means stronger councils and a better capacity to serve their communities.
“Labour hire will still have a place when councils genuinely need it. But it should not be used to undercut the wages of council employees or as a substitute for maintaining a strong permanent workforce.
“More people employed directly by councils means stronger councils and a better capacity to serve their communities.”
General Secretary United Services Union Graeme Kelly said:
“The long-awaited decision by the Minns Labor Government to introduce Same Job Same Pay laws protecting local government jobs from contractors who undercut wages and conditions is fully supported by tens of thousands of council workers across NSW.
“These laws will ensure that anyone trying to undercut hard fought for conditions will now have maintain local government rates of pay and conditions.”