How the Worker Retention Payment Will Interact With Labour Hire Workers

06.05.25 10:20 AM
The Department has confirmed that all eligible workers, including those engaged through labour hire agencies, must receive the Worker Retention Payment (WRP) funding. 

If you engage staff via a labour hire agency, please make note of the below: 

  • Worker Retention Payment funding must be passed on to workers as increased wages.
  • The payment cannot be used to cover agency fees.
  • Agencies are required to apply the minimum payment rates as outlined in the grant guidelines.

To remain compliant and transparent during this process, we recommend that you:

  • Engage directly with your labour hire agency to agree on how funding will be distributed
  • Update contracts with your agency to reflect these arrangements
  • Request clear evidence from your agency the payment has been passed on to workers

We also recommend collecting one of the following formats from your labour hire agency, to serve as evidence they are passing on the Worker Retention Payment to workers:

1. A formal written declaration, which could include:
  • Worker names that are receiving funding 
  • Funding provided to each worker (hourly rate + super)
  • Period covered by funding and any backpay
  • Relevant contract updates, inclusive of relevant clauses and effective dates

OR

2. Invoices or supplementary invoice reports, showing the payment has been passed on. It could include:

  • Line item for Worker Retention Payment
  • Detailed breakdown for each eligible worker (name, hours, amount)
  • Line item for any backpay claimed

As part of your annual reporting, you must show that all funding has been passed on to workers. There is no requirement to confirm whether the labour hire agency has a compliant workplace instrument.

Further, new workers hired during the grant period will be eligible for the WRP if they:

  • Meet general eligibility criteria
  • Are covered by a compliant workplace instrument

If you have questions or need support, please reach out to our ACA WRP team via phone - 1300 856 379 or via email - wrp@childcarealliance.org.au.

If you would like to read more about this update from the Department, you can do so here, under the heading "Who the payment covers".