FWO warns businesses to monitor worker obligations within their supply chain and network

Natalie James, the Fair Work Ombudsman (FWO), has encouraged businesses to use Baiada Group, Australia’s second largest poultry processor and supplier of Lilydale and Steggles, as an example and to get ahead of any compliance issues in their supply chain or network. She has recommended that, where your business regularly subcontracts work to another company, that it is worthwhile to investigate the contractors’ time keeping processes and to implement some measures to ensure that contractors are complying with their lawful obligations.

This advice from the FWO follows the issues Baiada Group has encountered recently with contractors underpaying workers. The group has complied with the FWO and assisted them to eliminate exploitation of vulnerable workers by contractors at their sites. The FWO has reported that five workers at the group’s Wingfield site had been underpaid by contractors by more than $5,000 total.

The FWO had found that some of the contractors had tried to circumvent the new electronic timekeeping and payroll systems that the group had implemented to ensure compliance with record-keeping laws, and continued to pay some employees below minimum rates. Baiada has terminated work with those particular contractors and in one case, overseen the contractor back-paying the workers in full.

Call the NRA Legal team on 1800 RETAIL (1800 738 245) if you need clarification or you would like to discuss the issue further.