With the introduction in Australia of the NSW Modern Slavery Act 2018 and impending Commonwealth modern slavery act, it is time for Australian businesses to not just understand the changing regulatory environment, but importantly to understand and act upon their operational and supply chain risks and responsibilities. To help with this process we have put together a short explainer video on the proposed NSW Modern Slavery Act based on our reading of the bill.
2. On July 21, 2018 the NSW Government
introduced a Modern Slavery Act
3. Organisations with annual turnover > $50m
have to publicly report on actions taken to
eliminate slavery from their supply chains
Who is captured?
4. The Commonwealth Government is also
introducing a Modern Slavery Act
It is expected to become law in late 2018
Whilst the two acts have similar goals and
requirements, it will capture business with a
turnover >$100m (a higher threshold)
5. Key parts of the NSW Act
Part 2 : Anti-Slavery Commissioner
Part 3 : Supply Chain / Modern Slavery Statements
Part 4 : Modern Slavery Risk Orders
6. Anti-Slavery Commissioner
The role has several functions including
advocacy, preparing reports, strategic planning
and encouraging best practice
The Commissioner will be appointed by the
government
7. Failure to do so can result in significant fines
Modern Slavery Statements
Organisations captured by the Act must prepare
annual modern slavery statements
8. Organisation’s structure, business and supply chains
Due diligence in relation to slavery
Parts of the business where there is risk
‘Steps taken’ to assess and manage risk
Training programs on slavery available to staff
The regulations will clarify what the statements
must contain, but the following are likely:
9. NSW Government procurement
The Commissioner will ‘monitor the effectiveness of
due diligence procedures’ to ensure NSW agencies
are not buying goods and services made with
slavery
10. It aims to make organisations more transparent
and pressures them to take action
Public Register
A searchable public register will be created of
organisations that disclose slavery in their
supply chains
11. Modern Slavery Risk Orders
Targets people already convicted of criminal
slavery related offences (listed under
Schedule 3 of the Act)
It aims to stop criminals continuing to offend
and protects victims
12. To prepare for both NSW and Federal acts:
1. Develop or adapt policies, systems and processes
2. Map your supply chain
3. Understand slavery risks in your organisation &
supply chain
4. Build capacity internally and among suppliers
5. Develop a strong governance framework
13. Sonja Duncan has over 20
years experience working with
businesses on human rights
and other supply chain and
business risks.
She can help.
