Subcontracting and labour-hire arrangements in the Victorian private security industry could lead to slavery-like conditions for workers, an advocacy group has warned.
In its submission to Victoria's private security industry review, the Australasian Centre for Corporate Responsibility claims contract arrangements within the industry are putting workers at risk of "severe exploitation and even modern slavery".
The use of "sham contracting" - where an employer pretends an employee is a private contractor - is leaving many without employment entitlements such as overtime, penalty rates and leave.
Meanwhile, the subcontracting by larger companies to smaller companies has "led to a culture of non-compliance in the industry and widespread failure to properly apply workplace laws".
"Widespread wage theft and excessive working hours can quickly deteriorate into modern slavery through threats and coercion, with some workers particularly vulnerable to slavery-like conditions," the submission reads.
Director of Workers' Rights at ACCR Katie Hepworth said migrant workers are particularly at risk, especially during the pandemic as they are not eligible for JobSeeker or JobKeeper payments.
"These low paid workers live paycheck to paycheck, and are likely to take up increasingly precarious and exploitative job offers if they lose work," Dr Hepworth said in a statement on Monday.
"COVID-19 job losses will see desperate migrant workers with limited options but to take up these contracts, putting themselves, and the broader community at risk."
The ACCR recommends that in addition to measures to regulate labour-hire in the industry, the government must take steps to regulate the role of lead companies in the industry, to stop them from "outsourcing their responsibilities".
The state government's private security review is due to report by December 2020.
It is separate to a judicial inquiry, which is investigating the links between the current COVID-19 outbreaks in the community and the hotel quarantine program.
It has been reported that at least one of the security companies involved in the program subcontracted work to a smaller security company.
