Thread: Best way to hire day labour

While I do not work on construction sites, I do work as a Handyman for myself.
How much to pay is always a good question as to what is a reasonable rate? I charge about $60 an hour, plus materials. I do use all my own tools and transport and have my own insurance (public liability). Normally I might be on the same job for 1/2 to 2 hours.
In your case, if they are on site all day, depending on skill pay $ 30 - 50 an hour. Set your rate before hand though. Say $ 300 for the day, or $ 400 for a particular task depending on how long it might take. If they are using their own tools such as a diamond tile saw be prepared to pay a bit more.
If it is just a case of clearing rubbish and moving bricks around the site and you are providing a wheel barrow, brooms and shovels, then the lower end might be acceptable.

I am sure as you ask around you will get a feel as to what people expect.

Originally Posted by Arron

No, not a stupid question at all. It’s common for people to have various licences, then to loose them through non-renewal, but not to upgrade their stationary. We spotted a couple of people doing this while searching for various trades and a builder. One had even been deregistered and was prohibited from dealing directly with potential customers. So ignore the stationary and do the checks.

+1

When looking for someone to re-seal & tile a shower recess I think there were more who were practising while unlicensed, or without the necessary license, that those who were correctly licensed. There were a number who had licenses in the name of another company. Wonder why?

The last from AlexS is exactly why we need a tradie-check site.

I watch on Instagram a guy called EliteTradieAnthony.... he's great.

At $60 an hour, one should be getting an artist, not a grunt.

Originally Posted by Arron

Tomorrow I’ll ring my insurers and get all this sorted out, but just to clarify one theme appearing in this thread. I’m a certified owner builder working under an owner builder permit, so I’m responsible for everything that goes on in my building site to exactly the same degree as would a professional builder or building company. There are no shortcuts or soft options involved in owner building when your o.b. permit is the ‘builders licence’ on the construction certificate.

Ps. I’m still keen to hear views on the other part of my question - that is, what is the going rate for ‘general hand’ type workers on construction sites?

Arron
The national award rate for completely "unskilled labour" is almost $25 per hour -- including the 25% loading for casual hire.
For that rate you should expect a totally "thumb in bum, mind in neutral" dog's body.

I would expect to pay extra for any level of "skill" such as knowing how to cut tiles to a line, etc.

On top of that will be loadings for "own tools" etc.


Then there is the issue of Superannuation Contribution -- currently around 9.5% ??
If you are being totally legit -- no shortcuts, no soft options -- you will have to factor superannuation into the rate. After all, you are the "employer".
So the "official hourly total compensation" for unskilled labour would be about $27 and $28 per hour. Of course, if the casual employee has their own ABN, then super contributions are their responsibility. But you should still expect to include dollar amount of the contribution into what you pay them.

Agree upfront on what the half-day, full-day compensation will be (and how many hours constitute a half or full day).



Returning to the other issue you have alluded to ...
even if you pay in cash you should still provide your "unskilled employee" with a daily or weekly statement of the amount paid. (More bloody paperwork)
The employee is then responsible for declaring the amount received to the ATO.

Rate of pay is really whatever you agree to. Ask a few of the tradies you are using if they know of someone who might be interested

You will get students doing it for under $30 hr or you may pay more for someone with a better skill set

It depends if you are paying by cash or as a legit employee. Cash will work better for you

You might be lucky. Many years ago I was about to start laying bathroom tiles when there was a knock on the door. It's a kid about 14 or 15, Boy Scout doing Bob-a-Job week. I asked him if he knew anything about laying tiles, he says "Sure, Dad's a builder."
He comes in, knows more about cutting & laying tiles than I did, we got the job done in about a quarter the time it would have taken me and the MIL. Forget what I payed him, but it was more than a couple of bob.

Originally Posted by ian

The national award rate for completely "unskilled labour" is almost $25 per hour -- including the 25% loading for casual hire.
For that rate you should expect a totally "thumb in bum, mind in neutral" dog's body.

Bunnings Team Member on his day off?

All sorted now, thanks to Airtasker.

And for those thinking of doing the same - I checked the insurance issue.
- If someone in my employ is hurt due to my negligence (and it is so proven) then my OB insurance covers that.
- If you are hiring someone in NSW and total yearly expenditure on hiring is less then $8700ish per year and meet several other conditions (which I do) then you are an exempt employee - and non-negligence injury claims are funded out of iCare. There are some minor processing and lodgement fees in the event of a claim.
- Superannuation etc not relevant.

And Airtasker does cover the insurance - although in my case it doesn’t need to as explained above.

Cheers
Arron

Good to hear you have it sorted Aaron, as a builder those exemptions don’t apply. I had a labourer who worked for me for a day and 3 years later claimed he hurt his back on that day and went me for workers compensation which they are legally entitled to do.

Your arrangements are much less onerous

Here, on the river, if they hurt themselves, we just throw them overboard on the way home at the end of the day.

Originally Posted by Arron

All sorted now, thanks to Airtasker.

And for those thinking of doing the same - I checked the insurance issue.
- If someone in my employ is hurt due to my negligence (and it is so proven) then my OB insurance covers that.
- If you are hiring someone in NSW and total yearly expenditure on hiring is less then $8700ish per year and meet several other conditions (which I do) then you are an exempt employee - and non-negligence injury claims are funded out of iCare. There are some minor processing and lodgement fees in the event of a claim.
- Superannuation etc not relevant.

And Airtasker does cover the insurance - although in my case it doesn’t need to as explained above.

Cheers
Arron

Yep, worked out fantastic. I hired a guy to do the first job and now I’m getting him back to do others a couple of days a week. He’s a keen worker and a self starter with a good general building knowledge and, I have to admit, is better at most building tasks then me. Long may it last.

Interesting thing about insurance...


From my experience in QLD, insurances are a hit and miss thing. If it's a well established organisation it's probably all good but even then I've seen alsorts of games played to avoid liabilty payouts. And the more home do it yourselfers, the adhock, and handyman operations are probably not insured. Once you breach the law in any way, the insurace company isn't obligated to pay out. And those latter groups almost always violate the regulations and or laws in some way, either ignorantly or deliberatley it doens't matter.


Have just done a few jobs with a particular fellow that is a licencess painter and calls himself a handyman. Always says he's insured, and quite confidently so to the nervous customers. Can even prove it... But the work always exceeds the handyman limit of 3300, so ultimatley he's not insured in anyway. He got lucky the last job. Developed a hernia, but the insurance company didn't look into the job. He was organising other trades, go paid will over 7000 by that time, so they paid for his 6 weeks off. If there's any future issues with the work he's done, it's most assuredly he's not covered. But because I'm not his keeper I don't feel it's my place to levture him how to run his business, as long as he keeps paying on time that is.