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The Act requires companies to take necessary steps to identify and address modern slavery in their operations and supply chains. In this guide, we will explore what the Australia Modern Slavery Act requires of companies and the steps they must take to comply with the law.
The Act also applies to government entities and other organizations that provide goods and services to the Australian government and have an annual revenue of over AUD 100 million. In addition, smaller companies that do not meet the revenue threshold may voluntarily comply with the Act's requirements. It is essential for all covered companies to take the necessary steps to identify and address modern slavery risks in their operations and supply chains and publish a modern slavery statement outlining their policies and processes to prevent modern slavery.
The New South Wales (NSW) Modern Slavery Act, which came into effect in 2019, applies to commercial organizations operating in NSW with an annual turnover of over AUD 50 million. This includes organizations that are incorporated in NSW, as well as those that carry on business in NSW but are registered in other states or territories of Australia. The Act also applies to government entities in NSW and other organizations that provide goods and services to the NSW government and have an annual turnover of over AUD 50 million.
Under the Act, the Australian Border Force has the power to investigate suspected cases of modern slavery and can issue infringement notices, initiate court proceedings, or refer cases to the Commonwealth Director of Public Prosecutions for criminal prosecution.
If a company fails to publish a modern slavery statement or provides false or misleading information in its statement, it can face penalties of up to AUD 1.1 million. Directors or officers of the company who were involved in the contravention of the Act can also be held personally liable for the penalty.
In addition to legal penalties, non-compliance with the Act can also result in reputational damage and loss of investor confidence. With increasing awareness of modern slavery and the importance of corporate social responsibility, companies that fail to comply with the Act may face negative publicity and damage to their brand reputation.
Under the Australia Modern Slavery Act, companies with an annual revenue of more than $100 million are required to publish a modern slavery statement on their website. The statement should outline the company's policies and processes for identifying and addressing modern slavery risks in its operations and supply chains. It should also detail the steps taken to assess and manage modern slavery risks and the effectiveness of the company's due diligence processes.
FRDM assists some of Australia’s biggest brands like ANZ Bank and Telstra to comply with the Australia Modern Slavery Act. We map and risk monitor your entire supply chain, including sub-suppliers and commodities. Our annual modern slavery reports include details about training, mitigation and impact.
The Australia Modern Slavery Act requires companies to undertake due diligence to identify and address modern slavery risks within their operations and supply chains. This includes assessing the risk of modern slavery in its operations and supply chains, developing a risk management plan, and conducting regular audits to monitor compliance. Companies are also required to report any instances of modern slavery discovered in their operations or supply chains.
FRDM uses basic vendor level data to build a dynamic risk monitoring system for your supply chain. Reporting features cut your team’s time to prepare report 60-80%.
The Australia Modern Slavery Act mandates companies to provide training and awareness-raising to their staff and suppliers on modern slavery issues. This includes training on how to identify and report modern slavery risks, as well as on the company's policies and procedures for addressing these risks. Companies must also ensure that their suppliers understand the importance of compliance with the Act and modern slavery issues.
FRDM offers online training for team and suppliers including the award-winning www.slaveryfootprint.org that FRDM’s founder developed with the US State Department and Google.
The Australia Modern Slavery Act also emphasizes collaboration and reporting among companies and stakeholders to address modern slavery issues. Companies are encouraged to collaborate with other organizations to share best practices and develop initiatives to address modern slavery risks. They are also required to report any instances of modern slavery discovered in their operations or supply chains to the relevant authorities.
FRDM is a leader in the modern slavery space. Our technology has been covered by CNN, Vogue, Fast Company, Wall Street Journal and others. We are partnered with Made In A Free World, one of the most influential NGOs in the Anti-Slavery space, and to whom FRDM donates 5% of every subscription fee.
FRDM is here to help, so please don't hesitate to reach out
if you have any questions.
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