Keeping Compliance on Track: Meeting Labour Obligations in 24/7 Shift-Based Supply Chains

In Australia’s manufacturing and distribution sectors, compliance with labour laws is not optional. These industries are built on 24/7 operations, round-the-clock shifts and large workforces whose productivity is essential to the country’s economic competitiveness. Yet the complexity of managing compliance in these environments leaves organisations highly exposed to risks.

From wage theft claims and union disputes to fines from the Fair Work Ombudsman, compliance failures are making headlines with increasing regularity. Coles faced public scrutiny in 2023 when it admitted to underpaying thousands of salaried managers by failing to factor in overtime and penalty rates. This shows that even large organisations with huge supply chain needs are vulnerable when compliance processes fail.

Companies that fall short of their labour obligations risk reputational damage, legal battles and strained employee relations. For supply chain operators already under pressure from rising costs and global uncertainty, compliance failures are an avoidable distraction.

In manufacturing and logistics, where workforces are large and shifts are complex, the chance of non-compliance is significantly higher. Governments, unions and employees are increasingly vocal about pay transparency and fair treatment. Organisations that fail to meet these expectations risk more than fines; they risk their social licence to operate.

The top five compliance risks in shift-driven supply chains

1. Missed break entitlements: In 24/7 operations, it is easy for managers under pressure to overlook mandated rest and meal breaks. Repeated breaches of break entitlements can expose businesses to huge penalties and fatigue-linked safety risks.
2. Incorrect award interpretation: Australia’s system of awards and enterprise agreements is notoriously complex. Inconsistent or manual interpretation often leads to errors in penalty rates, overtime and allowances.
3. Overtime mismanagement: Excessive overtime without appropriate remuneration breaches employment law and increases the likelihood of fatigue-related incidents.
4. Inadequate record-keeping: Failing to maintain accurate records of hours worked, leave accrued and entitlements paid makes compliance audits more difficult and riskier.
5. Casual and contract misclassification: Misclassifying workers or failing to correctly apply entitlements for casuals and contractors has been a key issue in recent Fair Work cases.

These risks are amplified in supply chain environments where demand volatility requires constant adjustment to rosters and staffing levels.

Auto-rostering in manufacturing

For manufacturers, auto-rostering represents one of the most impactful applications of digital workforce management. The sector’s continuous operations, heavy machinery and potential safety hazards mean that fatigue management is critical. Errors caused by tired or overworked employees can have serious consequences for both safety and productivity.

This is where digital workforce management (WFM) tools come into play. By automating compliance checks, ensuring award accuracy and delivering transparent audit trails, these systems are fast becoming essential to governance in shift-based industries.

Rising scrutiny over wage theft and worker burnout

Auto-rostering uses algorithms to simplify the creation of equitable and compliant shift schedules. These systems can account for:

• Legal obligations under awards and agreements
• Worker preferences and requests
• Skills and certifications required for shifts
• Fatigue management guidelines.

By balancing operational requirements with employee well-being, auto-rostering not only reduces compliance risks but also improves workforce satisfaction. Employees who feel their preferences are considered are more engaged and less likely to experience burnout.

Why manufacturing stands to gain the most

Manufacturing and distribution in Australia remain two of the most labour-intensive sectors. Despite the automation of production lines and warehousing, human input is still central to operations. This reliance on people creates both risk and opportunity.

By adopting integrated digital workforce solutions, manufacturers and distributors can:

• Improve compliance with labour laws and awards
• Reduce the risk of wage theft claims and union disputes
• Optimise rostering for both efficiency and employee wellbeing
• Gain real-time workforce insights for better decision-making
• Enhance their reputation as fair and responsible employers.

This strategic approach to workforce management does more than save time and money. It fosters a more dynamic and productive workforce, setting the foundation for sustained success in a highly competitive global market.

Proactive governance through digital tools

The lesson from recent compliance cases is clear: manual processes and legacy systems are no longer fit for purpose in highly regulated, shift-driven industries. Digital workforce management platforms are not simply operational tools. They are governance enablers.

By embedding compliance into everyday workforce processes, these platforms help manufacturers and distributors move from reactive firefighting to proactive governance. The result is a supply chain that runs efficiently, treats employees fairly and withstands scrutiny from regulators and the public.

Conclusion

Keeping compliance on track in 24/7 supply chains is no easy task. But with the right digital workforce management tools, manufacturers, distributors and logistics companies can automate award interpretation, create transparent audit trails and foster engaged, satisfied workforces.

In a sector where labour is both a cost and a critical driver of competitiveness, digital transformation of workforce management is no longer optional; it is a strategic imperative. For Australian manufacturers and distributors, embracing these tools offers a pathway to compliance certainty, stronger employee relations and long-term resilience in an increasingly challenging operating environment.

Learn more