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Author
Head of Workplace Relations
2026-01-28
4 minutes
2026 Compliance made simple for Councils: Why labour hire governance is now a leadership issue
Local government is entering a new phase of workforce compliance. In 2026, councils are no longer being judged solely on whether they intend to comply with workplace laws, but on whether they can demonstrate active governance across labour hire, referred workers and contingent engagement models.
This shift is being driven by the practical application of Same Job, Same Pay reforms, RLHAO obligations, and increasing scrutiny from regulators, unions and the broader public sector. For councils, the risk is no longer theoretical. It is operational, reputational and financial.
The compliance landscape has changed, even if your workforce model hasn’t
Many councils still rely on labour hire and referred worker models that were designed for a simpler regulatory environment. These models often assume that:
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Suppliers are responsible for pay accuracy and parity
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Compliance risk sits primarily with the labour hire agency
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Councils only need high-level assurance, not line-of-sight
In 2026, those assumptions no longer hold.
Same Job, Same Pay obligations, labour hire licensing frameworks and public-sector governance expectations mean councils are increasingly expected to know what workers are being paid, why they are being paid that way, and how parity risks are being managed across suppliers. The challenge is that most councils don’t have this visibility today.
Where councils are being exposed
Across NSW, QLD and VIC, the most common compliance gaps we see are not caused by bad intent, they are caused by structural fragmentation.
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Pay rates become opaque once workers are live
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Allowances, penalties and site-specific conditions are applied inconsistently
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Referred workers sit outside formal labour hire controls
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Procurement, HR and payroll operate in silo
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Councils rely on suppliers to “self-assure” compliance
Individually, these issues may seem manageable. Collectively, they create a material risk profile, particularly when regulators or unions start asking parity questions.
What ‘Good’ looks like in 2026
Leading councils are shifting away from fragmented supplier-led compliance and towards centralised workforce governance. In practice, this means:
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Clear, auditable visibility of pay rates across all labour hire and referred workers
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Controls that allow councils to test parity and alignment, not just trust it
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A clear separation between MSP oversight (governance, supplier management, rate control) and CMS employer obligations (employment, pay, statutory compliance)
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Systems and processes that stand up to Fair Work, RLHAO and public accountability scrutiny
This isn’t about removing flexibility. It’s about ensuring flexibility doesn’t come at the cost of compliance.
How Comensura supports councils
Comensura’s CMS employer-of-record model is designed specifically for this environment. By combining a strong MSP governance framework with CMS delivery for referred workers, councils gain:
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End-to-end visibility across their contingent workforce
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Confidence that pay parity risks are being actively managed
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Reduced exposure without disrupting service delivery
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Audit-ready records that support governance, not just operations
In 2026, compliance isn’t something councils can outsource and forget. But with the right model, it can be simplified.
Get in touch to find out how the Comensura team can support your workforce compliance goals.
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