Subcontracting and Precarious Employment

Serious safety and health risks faced by transport workers are intensified by fragmented contracting arrangements, outsourcing, subcontracting and forms of dependent self-employment. Where multiple layers of contractors and intermediaries operate in a supply chain, accountability for working conditions can become diffuse and unclear, and occupational risks can be shifted down the supply chain onto the workers with the least bargaining power and protection. 

Workers employed through subcontracting or precarious arrangements – including young, migrant, informal and misclassified workers – are often and particularly exposed to inadequate training, reduced protection and unstable incomes. These conditions undermine workers’ ability to refuse unsafe work, report risks or access effective protection and remedy, increasing the likelihood of accidents, exploitation and heightened legal, operational and reputational risks for companies and supply chain actors.

What companies and supply chain actors must do

Commercial and contracting decisions made at the top of the chain directly influence safety, working conditions and the risk of human and labour rights violations at the point of work, ranging from excessive working hours, unsafe conditions and wage abuses, to serious violations such as human trafficking and forced labour.

Companies and supply chain actors must recognise the risk that subcontracting and precarious employment pose, and ensure that HRDD addresses risks created through subcontracting structures and non-standard employment models. HRDD obligations extend beyond direct employees to all workers engaged through contracted and subcontracted transport services, in line with the requirement for companies not only to assess risks but also to demonstrate how they prevent, mitigate and account for harm and improve labour standards in practice across their supply chains.

This requires companies to exercise an active duty of care by ensuring clear allocation of responsibilities across contracting chains, by maintaining transparency in subcontracting relationships, and by aligning commercial decisions on subcontracting and precarious employment with a commitment to ensuring safe and decent working conditions. 

Companies must engage with workers and their trade union representatives to identify risks, monitor standards and ensure occupational safety and health protections are applied consistently across all parts of the supply chain. Working with the ITF and our affiliated trade unions enables companies to access worker-led monitoring, trusted reporting channels and established industrial relations mechanisms that help detect, prevent and eliminate risks from subcontracting and precarious employment.

Strengthening accountability across subcontracting arrangements is essential to preventing risk transfer, protecting workers and ensuring safe and sustainable transport operations.