Jone Maritino Nemani clarified that not all 400 cases involved workers absconding, with some linked to genuine workplace issues.
According to ARC, retailers are already facing mounting financial pressure, higher labour costs after the Fair Work Commission's junior pay rate increases.
Few business groups, oppose the proposal, saying it would increase costs and compliance burdens for employers.
Treasury says scandals at Deloitte, EY, KPMG and PwC exposed gaps in Australia's regulation, with the UK and US models cited for comparison.
Contract losses have increased pressure on TEG owner Silver Lake, fuelling speculation it could seek a strategic investor despite denying a sale.
