Third party risk – underpayment of workers contracted through labour hire arrangements

On 11 October 2017 the Fair Work Ombudsman claimed, “A new standard in labour supply chain governance has been set with the signing of a Proactive Compliance Deed between Woolworths Ltd and the Fair Work Ombudsman, covering the supermarket giant’s procurement of trolley collection services.”

The FWO intends to hold principals accountable for abusive labour hire arrangements. Companies, Departments and Agencies should consider the risks in contracting through labour hire arrangements in their procurement planning.

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