Reforms to modern slavery law welcome but need to go further to protect workers’ rights
Civil society groups and unions have welcomed proposed changes to strengthen Australia’s modern slavery law, including through the introduction of penalties, but are calling on the Albanese Government to also introduce a legal requirement for companies to take action to prevent modern slavery.
An independent review of Australia’s Modern Slavery Act, published in May 2023 found the law had “not yet caused meaningful change” for people living with modern slavery and made 30 recommendations to strengthen the Act.
Today the Albanese Government published its response, agreeing or agreeing in principle to implement 25 of the 30 recommendations including:
penalties for companies that fail to submit reports on their actions to address modern slavery or that knowingly publish false information; and
publication by the Minister or Anti-Slavery Commissioner of a list of locations, sectors and products known to be high risk for modern slavery as well as annual publication of a list of companies that have reported under the Act.
The government will consult further on the implementation of these recommendations.
However, civil society and unions expressed disappointment that the government’s response does not currently include the introduction of a due diligence obligation, which was a key recommendation of the review. A due diligence obligation would require companies covered by the law to actively identify and address modern slavery risks in their operations and supply chains, not just report on their efforts. The government has agreed to “carefully consider and consult with stakeholders on the introduction of a due diligence system” but has not at this stage made a commitment to implementing it.
After a more than 18-month wait for the government’s response to the review of the Act, civil society is urging the Albanese Government to implement a due diligence obligation without further delay. Australia’s regulatory response to modern slavery continues to lag behind international peers.
Michele O’Neil, President, Australian Council of Trade Unions said:
"Five years into the operation of the Modern Slavery Act, it’s clear that the law is not strong enough to deliver real improvements for workers in situations of modern slavery in the operations and supply chains of Australian companies. We welcome the commitment to implement penalties for companies failing to uphold their reporting obligations. However the commitment must go further and should include a requirement for companies to take concrete action to prevent modern slavery - this means introducing a requirement for companies to undertake due diligence, and penalties for companies failing to prevent modern slavery in their operations and supply chains."
Keren Adams, Legal Director at the Human Rights Law Centre said:
“As demonstrated by the recent stories of abuse and exploitation coming out of the horticultural sector, Australia’s Modern Slavery Act is currently failing workers. We therefore welcome the Albanese Government’s plans to strengthen the law, particularly through the introduction of penalties for companies that fail to report, or falsely report, under the law.
“But simply enforcing better reporting will not drive the transformational changes to corporate practices we know are needed to help end forced labour. The Act should also impose a legal requirement on companies to take action. We urge the Albanese Government to move swiftly to implement a due diligence obligation on companies, as recommended by the independent review.”
Professor Justine Nolan, Director, Australian Human Rights Institute said:
“Strengthening the Modern Slavery Act is a positive step forward. To align with global best practices and create a consistent framework for businesses, Australia should also introduce a mandatory due diligence requirement. A cohesive international legal framework will help improve practices and more effectively combat the widespread issue of modern slavery, which transcends national borders.”
Carolyn Kitto, Co-Director, Be Slavery Free said:
“The government has had the Modern Slavery Act Review report for 557 days—during which an estimated 15 million more people have fallen into slavery. While these commitments are welcome, urgent action to implement all recommendations is critical. We cannot afford another delay like this.”
Amy Sinclair, Australia, New Zealand and the Pacific Senior Representative, Business and Human Rights Resource Centre said:
“Whilst these steps to strengthen the Modern Slavery Act are welcome, the Australian Government must move faster to curb the spread of modern slavery. It is time for Australian businesses to move beyond policies and act with due diligence in sourcing their inputs. The government should now move quickly to introduce measures requiring due diligence by businesses to address the egregious abuse of modern slavery.”
Background
The Review of the Modern Slavery Act was led by led by Professor John McMillan AO, and found the modern slavery reporting law had “not yet caused meaningful change” for people living with modern slavery and made 30 recommendations to strengthen the Act.
The UN Special Rapporteur on Slavery also recently called on the Albanese Government to introduce a due diligence obligation into the Act in a report last month, “as many businesses are not identifying contemporary forms of slavery in reality”.
The Global Slavery Index estimates that 41,000 people in Australia and almost 50 million people globally, currently live and work in situations of modern slavery. Australian businesses source primarily from the Asia Pacific region, which has the highest rates of modern slavery in the world.
In 2022, the Human Rights Law Centre, academic and civil society partners released a major report, which found that companies were failing to identify obvious modern slavery risks in their supply chains or take effective action to address them.
In September the NSW Anti-Slavery Commissioner released a report on the situation of migrant workers, which found patterns of conduct involving indicators of modern slavery (including debt bondage, forced labour, servitude, deceptive recruiting and human trafficking) in the NSW agriculture, horticulture and meat processing industries.
The Modern Slavery Act was introduced by the Coalition Government in 2018 with bi-partisan support.
Media contact:
Chandi Bates
Media and Communications Manager
Human Rights Law Centre
0430 277 254
chandi.bates@hrlc.org.au