Modern Slavery Act reforms under a Labor Government and what businesses need to know

Introduction

Labor went into the May election promising a number of significant changes to modern slavery mitigation strategies and legislation in Australia. These included:

• Appointment of an independent Anti-Slavery Commissioner
• A publication of an annual list of countries, regions, industries and products with a high risk of modern slavery. Companies importing from these places would be required to prove goods are not made with forced labour.
• Consultation with stakeholders, including business and advocacy groups, to introduce penalties for non-compliance and require mandatory reporting on exposure to specified issues of pressing concern (including Uyghur forced labour).
• An audit on the federal government’s procurement procedures and supply chains and disclose this publicly.

It is likely that a Labor-led government will drive forward the above changes and will garner the support of the progressive independents.

What does this new approach mean for business?

The statutory review process of the Modern Slavery Act commenced earlier in 2022. An Issues Paper for public consultation in relation to the review is anticipated to be available from mid-2022. The consultation will allow stakeholders and business groups to make submissions on matters for consideration in the review. The review is set to be completed before 31 March 2023, with a report being made publicly available and tabled in each house within 15 sitting days.

It is clear that it is simply a matter of when, not if, the Modern Slavery Act will be strengthened.

An effective and robust supplier due diligence program will become critical especially for those operating with complex and globalised supply chains. Businesses in sectors and jurisdictions with an increased risk of modern slavery are likely to face greater scrutiny where there are crossovers with the annual list. This means that preparation is key and being able to demonstrate meaningful understanding of risks beyond the first tier of supply chains. This is something that many companies have grappled with over the past few years since the inception of the Modern Slavery Act. The impending changes to the legislation means that now is the time to reflect on the adequacy and effectiveness of your due diligence frameworks and plan a path forward to ensure that your business is well placed to navigate the changing legislative landscape. Commonwealth government suppliers should act with some urgency.

Contact Abigail McGregor and Grace Do at Norton Rose Fulbright Australia for a confidential discussion on your preparedness and next steps.