Important Updates
Important Updates
June 30, 2025 | Costa RicaCosta Rica: Potential Fraud and Technical Issues with General Immigration Directorate’s Website May Cause Delays
July 1, 2025 | 🌐Minimum Salary Changes Announced
July 1, 2025 | Saudi ArabiaSaudi Arabia: Visit Visa Entry and Exit Restrictions for Select Nationals
June 30, 2025 | Japan2025年6月 アメリカ移民法ダイジェスト
June 30, 2025 | Saudi Arabia, United Arab EmiratesArab News: Growing Saudi Film Industry Driving Job Creation, Economic Growth
June 30, 2025 | Costa RicaCosta Rica: Potential Fraud and Technical Issues with General Immigration Directorate’s Website May Cause Delays
July 1, 2025 | 🌐Minimum Salary Changes Announced
July 1, 2025 | Saudi ArabiaSaudi Arabia: Visit Visa Entry and Exit Restrictions for Select Nationals
June 30, 2025 | Japan2025年6月 アメリカ移民法ダイジェスト
June 30, 2025 | Saudi Arabia, United Arab EmiratesArab News: Growing Saudi Film Industry Driving Job Creation, Economic Growth
June 30, 2025 | Costa RicaCosta Rica: Potential Fraud and Technical Issues with General Immigration Directorate’s Website May Cause Delays
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMedia
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Navigating Immigration Under the Second Trump AdministrationTravel & Mobility Considerations: Situation in the Middle EastImmigration Matters: Your U.S. Compliance RoadmapHumanitarian and Evolving Legal Pathways (HELP)Vietnamese ImmigrationAustralian Immigration: New Skills in Demand Visa
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Navigating Immigration Under the Second Trump Administration
  • Travel & Mobility Considerations: Situation in the Middle East
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Humanitarian and Evolving Legal Pathways (HELP)
  • Vietnamese Immigration
  • Australian Immigration: New Skills in Demand Visa

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMedia
  • Insights

Don’t Turn a Blind Eye to Labour Supply Chains

September 7, 2016

chris-spentzaris_melbourne

Country / Territory

  • AustraliaAustralia

Related contacts

Photo of Chris Spentzaris

Chris Spentzaris

Partner

Melbourne, Australia

Email

[email protected]

T:+ 61 3 9613 9301

Related offices

  • Brisbane
  • Melbourne
  • Perth
  • Sydney

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Photo of Chris Spentzaris

Chris Spentzaris

Partner

Melbourne, Australia

Email

[email protected]

T:+ 61 3 9613 9301

Related offices

  • Brisbane
  • Melbourne
  • Perth
  • Sydney

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Photo of Chris Spentzaris

Chris Spentzaris

Partner

Melbourne, Australia

Email

[email protected]

T:+ 61 3 9613 9301

Related offices

  • Brisbane
  • Melbourne
  • Perth
  • Sydney

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

By: Chris Spentzaris

The Fair Work Ombudsman (‘FWO’) is actively investigating breaches of the Fair Work Act 2009 in labour supply chain arrangements and pursuing cases against end-user businesses, including their Human Resources managers and senior managers.

Could you be an accessory to employment law breaches in supply companies?

The FWO is utilising the accessorial liability provisions of the Act which impose personal liability on any person who is involved in a breach of the Act. A person will be taken to be involved in a breach of the Act if they have aided, abetted, counselled or procured the breach or they have induced the breach, whether by threats or promises or otherwise, or they have been in any way, by act or omission, directly or indirectly, knowingly concerned in or party to the breach or they have conspired with others to effect the breach..

What are some examples of accessorial liability?

The FWO has pursued end user business for deficiencies in the management of labour supply chains such as the following:

  • a major grocery retailer for procurement arrangements that appear to be set up deliberately to transfer capital risk down through labour supply chains.
  • a major poultry producer for a failure to actively monitor and enforce procurement contract terms.
  • a major department store retailer for governance systems that are not effective to detect non-compliance in labour supply chains.
  • major hotel chains for failing to recognise that the contract price for the provision of labour was insufficient to cover appropriate remuneration.
  • a failure to comply with statutory record-keeping requirements.
  • a failure to actively monitor who is performing which work at which worksite and when, and the terms and conditions of their employment.
  • a lack of sustainable self-monitoring systems to ensure compliance.
 
The FWO has made it clear that end user businesses cannot rely on indemnity clauses in procurement contracts when breaches of the Act occur in their labour supply chains in a way that was or ought to have been reasonably visible to the business.
 
What kind of penalties can be imposed?
  • Compensation: to compensate a person for the loss suffered as a result of the breach. 
  • Penalties: up to $10,800 per breach, for both corporations and individuals.
  • Pecuniary Penalties: up to $10,800 for an individual and $54,000 for a corporation, per breach.
  • Reputational Risk: This is usually the greatest damage to the business: unwanted adverse media attention and the resulting brand damage.
 
What has FWO asked businesses to do to avoid prosecution?

The FWO has the power to secure enforceable undertakings against a business, rather than pursue prosecution.

To avoid court proceedings, the business must admit to the breach and agree to implement the measures that FWO sees fit. Recent examples of measures required to be undertaken have included:

  • Providing a personal letter of apology to each affected worker.
  • Publishing a notice of apology in the main capital city newspaper.
  • Posting a notice of apology at each worksite.
  • Making a contribution to a community workplace relations education programme.
  • Rolling out training in workplace laws to all management staff.
  • Amending tender documents to:
    1. refer to the terms of the relevant Award;
    2. imposing an obligation on the principal contactor to ensure subcontractor compliance;
    3. requiring the contractor to pay workers through a third party payroll provider.
  • Using only one contractor and one payroll.
  • Ensuring that the contract price is indexed to applicable Award rates, taking into account the number of levels of subcontractors extracting a profit.
  • Implementing regular auditing of the labour supply chain.
  • Identifying and reviewing the true employer of all workers attending the workplace.
  • Keeping accurate records of rosters and hours worked.
  • Improving governance arrangements and ensuring transparency in labour supply arrangements.
 
Even if prosecution under the Act can be avoided, a finding against a business constitutes ‘adverse information’ about the business under migration law, which can lead to:
  • Bar or cancellation of approval as a 457 visa sponsor;
  • Penalties under the Migration Act 1958; and
  • Refusal of applications.
 
Need more information?

To discuss how this FWO activity may impact your organisation, please contact us.

The Fragomen Advisory and Compliance team would be pleased to assist with further advice and guidance in relation to accessorial liability and the implications of employment law requirements for organisations that employ visa holders.

Country / Territory

  • AustraliaAustralia

Related contacts

Photo of Chris Spentzaris

Chris Spentzaris

Partner

Melbourne, Australia

Email

[email protected]

T:+ 61 3 9613 9301

Related offices

  • Brisbane
  • Melbourne
  • Perth
  • Sydney

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Photo of Chris Spentzaris

Chris Spentzaris

Partner

Melbourne, Australia

Email

[email protected]

T:+ 61 3 9613 9301

Related offices

  • Brisbane
  • Melbourne
  • Perth
  • Sydney

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Photo of Chris Spentzaris

Chris Spentzaris

Partner

Melbourne, Australia

Email

[email protected]

T:+ 61 3 9613 9301

Related offices

  • Brisbane
  • Melbourne
  • Perth
  • Sydney

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Fragomen news

2025年6月 アメリカ移民法ダイジェストLearn more

Media mentions

Arab News: Growing Saudi Film Industry Driving Job Creation, Economic Growth

Partner Abeer Al Husseini highlights how Saudi Arabia’s growing film industry is creating jobs, attracting global talent and supporting economic diversification.

Learn more

Awards

Silicon Valley Business Journal Recognizes Partner Cindy Jen Among 2025 Women of Influence

Partner Cindy Jen is recognized as a 2025 “Woman of Influence” by the Silicon Valley Business Journal.

Learn more

Blog post

2025 LAR and Canada Immigration Trends: Balancing Control and Opportunity

This blog highlights the most significant immigration developments shaping Canada and Latin America in 2025. Drawing from Fragomen’s upcoming 2025 Regional Immigration Overviews—available mid-July—it provides actionable insights and strategic guidance to help businesses and individuals navigate the region’s dynamic immigration landscape.

Learn more

Media mentions

Global Mobility Lawyer: DOL Plans “Emergency Agency” to Approve H-2A Visas

Partner Rachel Beardsley highlights how employment-based immigration supports the US agricultural sector amid labor shortages and evolving policies.

Learn more

Media mentions

Global Mobility Lawyer: Middle East Tensions Show Importance of Caring for Mobile Talent

Partner Abeer Al Husseini shares how employers can support mobile talent through travel readiness, immigration awareness and a people-focused approach.

Learn more

Blog post

The EB-1C Green Card for Multinational Managers and Executives: Exploring Non-Traditional Pathways to Permanent Residency

Associate Whitney Luman discusses the EB-1C Green Card for multinational managers and executives, exploring non-traditional pathways to permanent residency.

Learn more

Video

Post-Graduation Work Permit (PGWP) | Staying in Canada Post-Graduation

Partner Jack Kim discusses one of many immigration pathways for staying in Canada post-graduation, the Post-Graduation Work Permit (PGWP).

Learn more

Blog post

A New Beginning: The Rise of Highly Skilled Visa and Digital Nomad Visa Options in APAC

Practice Leader Kate Praphakornphiphat, Senior Manager Amy Zhang, Immigration Program Manager Melissa Ngeow and Senior Knowledge Management Specialist Faye Amorado discuss the increasing popularity of highly skilled visas and digital nomad visas in the Asia-Pacific region.

Learn more

Fragomen news

Canada's Semiconductor Council: Strengthening Canada’s Semiconductor Talent Pipeline for Global Competitiveness

Partner Cosmina Morariu contributed to Canada’s Semiconductor Council 2025 Talent & Workforce Development report, highlighting immigration’s role in closing talent gaps.

Learn more

Awards

Fragomen Recognized with Community Service Award at Woori Center 2025 Gala

Fragomen was honored with the Community Service Award at the Woori Center 2025 Gala on June 21, 2025 in Philadelphia.

Learn more

Media mentions

People Management: How HR Can Prepare for the ETIAS Rollout

Manager Andreia Florina Ghimis explains how HR teams can prepare for the EU’s new ETIAS travel authorisation system by communicating changes, supporting employees and ensuring compliance.

Learn more

Fragomen news

2025年6月 アメリカ移民法ダイジェストLearn more

Media mentions

Arab News: Growing Saudi Film Industry Driving Job Creation, Economic Growth

Partner Abeer Al Husseini highlights how Saudi Arabia’s growing film industry is creating jobs, attracting global talent and supporting economic diversification.

Learn more

Awards

Silicon Valley Business Journal Recognizes Partner Cindy Jen Among 2025 Women of Influence

Partner Cindy Jen is recognized as a 2025 “Woman of Influence” by the Silicon Valley Business Journal.

Learn more

Blog post

2025 LAR and Canada Immigration Trends: Balancing Control and Opportunity

This blog highlights the most significant immigration developments shaping Canada and Latin America in 2025. Drawing from Fragomen’s upcoming 2025 Regional Immigration Overviews—available mid-July—it provides actionable insights and strategic guidance to help businesses and individuals navigate the region’s dynamic immigration landscape.

Learn more

Media mentions

Global Mobility Lawyer: DOL Plans “Emergency Agency” to Approve H-2A Visas

Partner Rachel Beardsley highlights how employment-based immigration supports the US agricultural sector amid labor shortages and evolving policies.

Learn more

Media mentions

Global Mobility Lawyer: Middle East Tensions Show Importance of Caring for Mobile Talent

Partner Abeer Al Husseini shares how employers can support mobile talent through travel readiness, immigration awareness and a people-focused approach.

Learn more

Blog post

The EB-1C Green Card for Multinational Managers and Executives: Exploring Non-Traditional Pathways to Permanent Residency

Associate Whitney Luman discusses the EB-1C Green Card for multinational managers and executives, exploring non-traditional pathways to permanent residency.

Learn more

Video

Post-Graduation Work Permit (PGWP) | Staying in Canada Post-Graduation

Partner Jack Kim discusses one of many immigration pathways for staying in Canada post-graduation, the Post-Graduation Work Permit (PGWP).

Learn more

Blog post

A New Beginning: The Rise of Highly Skilled Visa and Digital Nomad Visa Options in APAC

Practice Leader Kate Praphakornphiphat, Senior Manager Amy Zhang, Immigration Program Manager Melissa Ngeow and Senior Knowledge Management Specialist Faye Amorado discuss the increasing popularity of highly skilled visas and digital nomad visas in the Asia-Pacific region.

Learn more

Fragomen news

Canada's Semiconductor Council: Strengthening Canada’s Semiconductor Talent Pipeline for Global Competitiveness

Partner Cosmina Morariu contributed to Canada’s Semiconductor Council 2025 Talent & Workforce Development report, highlighting immigration’s role in closing talent gaps.

Learn more

Awards

Fragomen Recognized with Community Service Award at Woori Center 2025 Gala

Fragomen was honored with the Community Service Award at the Woori Center 2025 Gala on June 21, 2025 in Philadelphia.

Learn more

Media mentions

People Management: How HR Can Prepare for the ETIAS Rollout

Manager Andreia Florina Ghimis explains how HR teams can prepare for the EU’s new ETIAS travel authorisation system by communicating changes, supporting employees and ensuring compliance.

Learn more

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • Twitter

© 2025 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.