Modern Slavery Compliance
Obligations under the Modern Slavery Act 2018 (Cth) requiring large businesses to report on modern slavery risks in their operations and supply chains and actions taken to address those risks.
In-Depth Explanation
Modern slavery compliance in Australia is governed by the Modern Slavery Act 2018 (Cth), which requires entities meeting certain thresholds to publish annual Modern Slavery Statements detailing their efforts to identify and address modern slavery risks.
Key obligations:
- Reporting threshold: Entities with annual consolidated revenue of $100 million or more
- Voluntary reporting: Available for entities below the threshold
- Reporting period: Statements must be published within six months of the end of the reporting period
- Mandatory criteria: Statements must address seven specific criteria set out in the Act
The seven mandatory reporting criteria:
- Identify the reporting entity: Structure, operations, and supply chains
- Describe operations and supply chains: Including subsidiaries and overseas operations
- Identify risks: Modern slavery risks in operations and supply chains
- Describe actions: Steps taken to assess and address identified risks
- Assess effectiveness: How the entity assesses the effectiveness of its actions
- Consultation process: How the entity consulted with owned or controlled entities
- Other relevant information: Any additional information the entity considers relevant
Forms of modern slavery include:
- Trafficking in persons
- Slavery and slavery-like practices (servitude, forced labour, forced marriage, debt bondage)
- The worst forms of child labour
- Deceptive recruiting for labour or services
The Act is currently under review, with potential amendments including financial penalties for non-compliance, an Anti-Slavery Commissioner, and lowering the reporting threshold.
Business Context
Businesses must address modern slavery risks in their supply chains to meet legal obligations, protect their reputation, and respond to growing stakeholder expectations around ethical sourcing.
How Clever Ops Uses This
Clever Ops helps Australian businesses automate modern slavery risk assessment across their supply chains. We build supplier due diligence questionnaires, risk-scoring frameworks, and statement preparation workflows that streamline compliance with the Modern Slavery Act.
Example Use Case
"A retail company automates supplier risk assessments using questionnaires and third-party data to identify and prioritise modern slavery risks across its multi-tier supply chain."