Calls for new legal obligation on companies to prevent modern slavery
The Human Rights Law Centre has today released a proposed model amendment to the Modern Slavery Act 2018 (Cth), which would hold companies accountable for preventing modern slavery in their operations and supply chains, and require them to undertake due diligence to identify and address modern slavery risks.
Under the proposed amendment, a new 'duty to prevent’ modern slavery would be introduced for companies with an annual turnover of over $100 million. Workers subjected to modern slavery would be able to seek direct remedy from companies, unless the company can demonstrate that it took all reasonable steps to prevent the abuse from occurring. Consistent with reporting obligations, the duty would apply to companies' domestic and overseas operations and supply chains.
The proposal was released in a draft submission to the Australian Government’s three-year statutory review of the Modern Slavery Act. Other measures to strengthen the law outlined in the Human Rights Law Centre's submission include penalties for companies that fail to comply with the legislation, and improved oversight and enforcement by an independent Anti-Slavery Commissioner. The statutory review is being led by Professor John McMillan, AO, and is due to report in March 2023.
The Human Rights Law Centre, together with academic and civil society partners, last week released a major report which found that, three years into the Act’s operation, companies are still failing to identify obvious modern slavery risks in their supply chains or take action to address them.
Freya Dinshaw, Senior Lawyer, Human Rights Law Centre:
“The Modern Slavery Act is currently failing workers. There are no hard consequences for companies that fail to comply with the laws, and there is little evidence to suggest that reporting is driving meaningful action by companies to lift conditions for supply chain workers at high risk of exploitation.
“Our modern slavery laws need to evolve so that they put people, rather than paperwork, at their centre. We welcome the Albanese Government's commitment to introducing penalties and an Anti-Slavery Commissioner to improve compliance, but we believe more fundamental changes are also needed to the legislation itself. We are urging the Government to amend the law so that it requires companies to take concrete action to address modern slavery in their supply chains rather than just reporting on their current practices. This would be far more likely to result in real change to protect the rights of workers in Australia's supply chains."
Read our draft submission to the 3-year statutory review of the Modern Slavery Act here.
Read our proposed model amendment here.
Read Broken Promises, Two years of corporate reporting under Australia’s Modern Slavery Act here.
Media contact:
Thomas Feng, Media and Communications Manager, 0431 285 275, thomas.feng@hrlc.org.au
Michelle Bennett, Engagement Director, 0419 100 519, michelle.bennett@hrlc.org.au