Subcontracting and Precarious Employment

Commercial and contracting decisions at the top of the chain determine safety, working conditions and the risk of human and labour rights violations at the point of work – excessive working hours, wage theft and, in serious cases, human trafficking and forced labour. A rate that does not cover the true cost of safe and legal operation does not make that cost disappear: it transfers the risk to workers. 

Fragmented contracting arrangements, outsourcing, subcontracting and forms of dependent self-employment intensify safety and health risks transport workers face. Multiple layers of contractors and intermediaries obscure accountability for working conditions, allowing occupational risks to be shifted down the supply chain onto the workers with the least bargaining power and protection. These employment arrangements also undermine workers’ ability to exercise their rights to organise and bargain collectively.

Workers employed in subcontracted or precarious roles – including young, migrant, informal and misclassified workers – face inadequate training, reduced protection and unstable incomes. That weakens their ability to refuse unsafe work, report risks, or access protection and remedy – raising the likelihood of accidents and exploitation, and wider legal, operational and reputational risks.

What effective HREDD requires

Commercial and contracting decisions at the top of the chain – for example, aggressive price cuts, short-notice changes, late payments, or rushed lead times all placing financial pressure on suppliers – can directly influence safety, working conditions and the risk of human and labour rights violations at the point of work, ranging from excessive working hours, wage theft, and in serious cases human trafficking and forced labour.

Transport buyers, as well as regulators, must ensure their HREDD addresses the risks arising from these employment models. Responsibility extends beyond direct employees to all workers engaged through contracted and subcontracted transport services, and companies must demonstrate how they identify and address risk and harm, and improve labour standards across their supply chains. 

That requires an active duty of care: clear accountability across contracting chains, transparency in subcontracting relationships, and commercial decisions aligned with safe and decent working conditions.

Companies must also engage workers and their trade unions to identify risks, monitor standards and ensure occupational safety and health protections apply consistently across the whole supply chain. Working with the ITF and our affiliated trade unions gives companies access to worker-led monitoring, trusted reporting channels and established industrial relations mechanisms that detect, prevent and eliminate risks that subcontracting and precarious employment create.