Randstad becomes first education recruitment agency to pay Workforce Retention Payment to agency-employed educators

Randstad has announced it will pass on the Federal Government’s Workforce Retention Payment (WRP) to its agency-employed early childhood educators, teachers and cooks, becoming the first education recruitment agency to publicly confirm this commitment.

Randstad has announced it is passing on the Workforce Retention Payment (WRP) to its agency-employed early childhood education and care (ECEC) workers, including casual educators, early childhood teachers and cooks. The agency is the first education recruitment firm to publicly confirm this commitment.

The WRP is a Federal Government initiative delivered through Child Care Subsidy (CCS) channels to eligible ECEC providers. Although agencies do not receive CCS directly, workers supplied through labour hire arrangements remain eligible for the WRP if they are placed at approved services.

In response to The Sector’s enquiries, Randstad Education confirmed it has established internal systems to ensure eligible casuals receive the full value of the payment, without altering client service fees.

“Randstad Education is committed to passing on the full WRP grant to our teachers, educators and cooks employed at an eligible centre,” said Matt Hodges, National Director for Education, Health and Social Care. “We believe this is essential to support workers in this sector to show how valued they are and to recognise the efforts of this large workforce.”

Mr Hodges said the payments are integrated into regular wages, reflecting the government’s intention of a 10 per cent uplift in the first year of the scheme and a further 5 per cent in the second.

The agency has updated talent contracts, proactively engaged with clients to ensure eligibility, and introduced detailed reporting mechanisms to help services meet their compliance obligations under the grant.

“Our model ensures full transparency to both clients and talent, providing a clear breakdown of all grant payments and confirmation of payment to eligible clients,” Mr Hodges said.

Randstad emphasised that the WRP is not funded through revised service fees, but rather is passed on as a direct government grant, following the scheme’s intent. Reporting includes supplementary invoicing with breakdowns by educator, dates worked and funding amounts.

Government guidance confirms that labour hire workers are eligible to receive the WRP when placed at approved CCS-funded services. While the funding is directed to the service, agencies must pass on the full amount to workers as higher wages and are not permitted to use the grant to cover service fees. Services are encouraged to seek evidence, such as declarations or detailed invoice breakdowns, to verify that the payments have been passed on.

“Educators, teachers and cooks appreciate the transparency and assurance that they will receive the full payment that they are entitled to, through a reliable agency partner,” Mr Hodges added. “Our clients value Randstad Education’s expertise in handling the intricate processes and reporting associated with the WRP, allowing them to focus on service delivery.”

Randstad confirmed it will continue this approach across both phases of the scheme, covering the 10 per cent and 5 per cent WRP instalments.

Randstad’s move may encourage other agencies to follow suit as the sector continues to adapt to the evolving funding landscape.

The Sector has contacted the United Workers Union for comment on the broader implications of agency-employed educators receiving the WRP and will provide further coverage as more perspectives emerge.