NSW chicken supplier to stop exploitation

One of Australia's largest suppliers of chicken meat has set aside $500,000 to repay staff who were underpaid by its contractors.

The announcement comes after an inquiry by the Fair Work Ombudsman in June found that contractors employed by Baiada were exploiting and underpaying staff at processing sites in NSW.

Baiada agreed to a Proactive Compliance Deed, which requires it to make sure all levels of employees and contractors fully complied with workplace laws, it said on Monday.