Australia has a Modern Slavery Act!

If you haven't heard by now, Australia has a Modern Slavery Act. Here is a quick synopsis of what's in the new law and questions for possible reporting entities to consider: 

1. Applies to organisations operating in Australia with an annual consolidated revenue of $100 million or more. (~ 3,000 entities).
2. Australian Government to prepare a consolidated modern slavery statement; corporate Commonwealth entities will report separately.
3. Reporting to cover conduct criminalised under Commonwealth Law Divisions 270 and 271: including slavery, servitude, forced labour, deceptive recruiting, debt bondage and forced marriage. Entities will also be required to report on measures taken to address human trafficking & worst forms of child labour.
4. Statements must be signed off by the entity’s principal governing body and published within six months of the publication of the entity’s annual report. First reports likely to be due mid-2020.
5. Key mandatory content for statements to include:

• structure, operations and supply chains;
• risks of modern slavery practices in the operations and supply chains of the reporting entity, and any entities that the reporting entity owns or controls;
• actions taken to assess and address those risks, including due diligence and remediation processes; and
• how the reporting entity assesses the effectiveness of such actions.

6. Online Modern Slavery Statements Register to be managed by government for free public use. Government guidance due out shortly.

Based on my recent conversations with businesses and suppliers, here are some questions you may be asking:

Am I covered under the law? What do I need to do to get ready?

Does my organisation and its people, its suppliers, and its contractors understand what modern slavery is? Are they able to recognise the indicators and do they know what to do if they suspect a case?

What is the difference between labour exploitation and forced labour?

How do I balance the interests of my shareholders/investors, my customers and the workers in my supply chain in whose interest this law has been passed?

What are my options in responding to suspected cases? To complaints or reports of alleged abuses in my supply chain? What are the potential positive, negative and unintended outcomes of taking various action under these options?

How and when do I refer a suspected case to law enforcement? What can I expect will happen when I do that?

What is the role of non-governmental organisations? How do I know I can I trust them? How do I find the ones I can trust?

How will I know that what I have done to prevent and/or address risk of modern slavery has been effective? How do I report on this in my statement?

What is my sphere of influence to achieve the 'good'?

If you are asking these questions, you're on the right track! I will be writing on these and other topics in 2019 to support organisations, including those with reporting obligations and those without, who are interested in going beyond compliance to achieve tangible, measurable improvements in the lives of people who produce the goods and services we rely on every day. If you are one of these firms, I'd like to hear from you and to know what other issues and questions are on your mind. Please get in touch!