14 SECURITY of organisations at the top of the supply chain , in this case local councils , can play a significant role in creating conditions that give rise to noncompliance by contractors further down the chain ”.
She went on to add “ I am pleased that throughout this Inquiry we were able to meaningfully engage with councils , local government associations and industry bodies to provide education around best practice supply chain governance and identify issues that need to be addressed .”
“ While it is the primary responsibility of the employer to ensure compliance with workplace laws , it is clear that councils could – and should – be doing more to keep tabs on what is going on in their security contracting networks ,” Ms James says .
FWO have recommended that local councils amend their security services tender documents to reflect best practice on contracting labour and ensure that the amounts paid in their contracts are sufficient for contractors and subcontractors to cover employee entitlements . They also expect councils to take a more proactive approach to monitoring their security supply chains , including by requiring contractors to regularly report on their compliance with their workplace obligations .
Beyond such measures being in line with community expectations , councils should note that it is not just employers who can be held liable for breaches such as underpayments occurring in a supply chain – in certain circumstances councils themselves may be held legally responsible when their contractors or subcontractors are not complying with the law .
GOVLINK » ISSUE 2 2018