This question comes up most often after something has already happened, which is the worst time to be reading a policy schedule. The short version: casual employees are covered by workers compensation the same way permanent employees are, and the business that pays for that cover is the one that legally employs them. Where it gets genuinely confusing is labour hire, because the business directing the work and the business employing the worker are not the same.
The short answer
- You employ the casual directly. You hold the policy, you declare their wages, you pay the premium. Casual status changes nothing about whether cover is required.
- You engage them through labour hire or an Employer of Record. The provider is the employer, so the provider holds the policy and pays the premium on those wages. You do not declare them as your workers.
- They are genuinely an independent contractor. Different rules apply, and this is where most disputes start, because a worker doing employee-shaped shift work under your direction is usually not a contractor no matter what the paperwork says.
Why it gets confusing
Workers compensation is not one national scheme. Each state and territory runs its own, with its own insurer arrangements, its own premium calculation and its own definitions of who counts as a worker. A business operating across two states is dealing with two sets of rules, and a labour hire provider supplying into several states has to hold cover in each one where the work is performed, not just where its head office sits.
That last point is the one worth checking. A certificate of currency proves a policy exists. It does not by itself prove the policy covers on-hired workers in the state where your site is. Ask for both.
What changes under an Employer of Record
Under an Employer of Record arrangement the provider is the legal employer for every hour worked. The employment contract, payroll, PAYG withholding, superannuation and the workers compensation policy all sit with them. You direct the work and pay an invoice. That is the entire point of the structure, and it is why the premium cost shows up inside the on-costs on your estimate rather than on your own policy renewal.
MyGig operates this way in NSW, WA, TAS and NT. Every worker on every shift is a MyGig employee for those hours, and the workers compensation premium is one of the on-costs itemised before you book. You can see how the whole structure is put together on our compliance page, or how the employment sits on the Employer of Record page.
What the host business still owes
Not holding the policy is not the same as having no duty. Work health and safety sits under a separate body of law from workers compensation, and it follows the workplace rather than the payslip. How the duty is allocated between a host and a labour hire provider is set out in the model WHS laws and the regulator guidance built on them, which Safe Work Australia publishes at safeworkaustralia.gov.au along with links to the regulator in each state. Read it for your situation rather than assuming the duty moved with the employment.
The practical version, whatever the legal allocation turns out to be in your case: agree in writing who inducts, who supervises, and how incidents are reported, before the first shift rather than after the first incident.
What to ask before the first shift
- Who is the legal employer of the workers being supplied? Get it in writing.
- Is there a current workers compensation policy covering on-hired workers in the state where my site is? Ask for the certificate of currency.
- How are wages declared for premium purposes, and does that include casual loading and penalties?
- Who runs the site induction, and what is the incident reporting path on day one?
- If a claim is made, who manages it and who is my contact?
The full seven-point version of this, covering authorisation, award compliance and pricing transparency as well, is in our labour hire due-diligence checklist.
Quick answers
Do casual workers get workers compensation in Australia?
Yes. Casual employees are covered by workers compensation on the same basis as permanent employees. The schemes are state and territory based, so the specific arrangements differ, but casual status itself does not remove cover.
Who pays workers compensation for a labour hire worker?
The labour hire provider, because the provider is the legal employer of the on-hired worker. The host business does not declare those workers on its own policy. The host still owes work health and safety duties as the business controlling the workplace.
Does a casual worker need to have worked a minimum number of shifts to be covered?
No. Cover attaches to the employment relationship, not to a length of service threshold. A worker injured on their first shift is covered on the same basis as one who has worked a hundred.
Who holds the policy for MyGig workers?
MyGig does. We are the authorised Employer of Record in NSW, WA, TAS and NT, so we hold workers compensation cover for every worker on every shift. The premium is one of the on-costs itemised on your estimate before you book.
Nothing here is legal advice, and the schemes differ enough between states that a specific situation deserves a specific answer. If you want to see how the cost of properly covered casual labour actually breaks down, the shift cost calculator itemises it hour by hour.