Visibility into contingent labour reduces legal risk and lifts productivity
Workforce compliance is shifting from a defensive, back-office function to a genuine source of competitive advantage, according to Mark Coyle, chief executive officer of HeadFirst Group's Asia-Pacific and India operations.
Speaking to HRD Australia, Coyle said the businesses that have invested in visibility over their entire workforce – not just their permanent employees – are now best placed to avoid the penalties and reputational damage that have hit organisations caught exploiting labour hire loopholes.
"There is significant lack of visibility across particularly those non-permanent labour categories," Coyle said, noting the issue spans companies from Fortune 200 firms through to small and medium enterprises.
Coyle's comments come as Australian employers continue adjusting to the Fair Work Legislation Amendment (Closing Loopholes) Act 2023, which introduced criminal penalties for intentional wage theft and created "same job, same pay" rights for labour hire workers, along with the follow-up Closing Loopholes No. 2 Act 2024, which reformed casual employment rules.
Coyle said the legislation has already reshaped behaviour among major employers in sectors such as mining and aerospace, where regulated labour hire arrangement orders have been enforced.
"Look at the major employers that this was targeted at in the resources [sector], in the aerospace sector, in...
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