Audit day goes best when your evidence is ready, your people know what to expect, and your processes show how your business looks after its workforce. A SMETA audit and a Fair Farms audit are two widely recognised ways for Australian agribusiness to demonstrate that. The encouraging news is that preparation is practical and learnable, and a few workforce areas are well worth getting right early.
This guide explains what these audits look at, which workforce areas to prepare first and how training from AUS-QUAL Training, brought to you by AUS-MEAT Limited, can support your team.
What Does a SMETA Audit or Fair Farms Audit Look At?
SMETA is the social audit methodology created by Sedex, and it assesses a site against the ETI Base Code and local law. A 2-pillar SMETA audit covers labour standards and health and safety, and a 4-pillar audit adds environment and business ethics.
Fair Farms is an industry-led, national training and certification program for Australian horticulture. It gives farm employers a pathway to independent, third-party audit and certification of their employment practices, with a strong focus on labour management, accommodation, workplace health and safety, payroll and grievance systems.
Which Workforce Areas Are Worth Preparing First?
Three workforce areas are well worth preparing early, because clear processes and records in each make audit day more straightforward.
Wages and Entitlements
Wage compliance is a strong place to start, because incorrect wages and entitlements are among the most common causes of non-conformance in audits. Good preparation begins with understanding the award, enterprise agreement or collective agreement that applies to your workers. From there, it covers applying minimum wages, overtime, penalty rates and allowances correctly, and meeting payslip and record-keeping requirements. It also helps to recognise common errors involving piece rates, casual loading and averaged hours, and to reconcile pay with rosters and time records.
Right-to-Work and Identity Checks
Verifying worker identity and right-to-work is a critical legal and ethical obligation, and a frequent source of non-conformance in SMETA and Fair Farms audits. A reliable process for right-to-work checks covers the types of evidence to review, the verification steps commonly used in Australia and New Zealand, and accurate records that meet privacy requirements.
Labour Hire Arrangements
Labour hire is a key risk area for modern slavery, wage theft and unfair work practices, and audits involving labour hire workers commonly identify non-conformances. Host businesses can prepare by understanding labour hire licence requirements in the states and territories that have licensing schemes, and the responsibilities shared between hosts and providers. Clear contracts, due diligence and ongoing monitoring of labour providers, together with well-kept worker documentation, complete the picture.
How Do Good Records Help on Audit Day?
Audit day is a chance to show your business at its best, and good records are what make that possible. When you can show how pay was calculated, how right-to-work checks were completed and how labour providers are monitored, conversations with auditors and customers become more straightforward.
Is a Training Course Right for You?
AUS-QUAL is expanding its Corporate Social Responsibility training with new courses that support audit preparation. If wages and payroll are your priority, start with Wage Compliance & Payroll Fundamentals. For identity and right-to-work checks, explore Right-to-Work & Identity Verification Training, and businesses that use third-party labour can build confidence with Labour Hire Compliance: AU & NZ Legal Obligations.
Horticulture businesses preparing for Fair Farms can add Understanding Fair Farms Standard v3.0, while ETI Base Code Essentials for Suppliers connects ETI expectations with SMETA and retailer audit requirements.
Ready to prepare with confidence? Register your interest to be among the first to hear when course dates are announced.
