The Australian Modern Slavery Act, why it's important and why should businesses train and educate their staff on the topic.
The Australian Modern Slavery Act is a piece of legislation that was introduced in 2018 to address the issue of modern slavery in Australia. Modern slavery refers to situations where people are forced to work against their will, often in dangerous or degrading conditions, for little or no pay. This can include practices such as forced labour, debt bondage, human trafficking, and child labour.
The act requires businesses with an annual turnover of $100 million or more to report on the risks of modern slavery in their operations and supply chains, and the steps they are taking to address these risks. This reporting must be done annually and must be publicly available on the company's website.
*In January 2024 the mandatory reporting threshold is expected to drop to $50 million along with several other changes in the legislation following the Australian Government review.
The act is important because modern slavery is a serious violation of human rights and a significant global problem. It is estimated that there are currently over 40 million people living in modern slavery around the world, including in Australia. By requiring businesses to report on the risks of modern slavery in their operations and supply chains, the act aims to raise awareness of this issue and encourage companies to take action to address it.
Businesses should train and educate their staff on the topic of modern slavery for several reasons. Firstly, it is important for staff to understand what modern slavery is and how it can occur in different forms within the supply chain. Staff need to know how to identify and report any indicators of modern slavery they may encounter in their work, and what actions they can take to prevent or address it. This could include implementing policies and procedures to ensure that suppliers are compliant with the Modern Slavery Act, conducting supplier audits and risk assessments, and providing training and support to suppliers to help them identify and address modern slavery in their own operations.
Secondly, training and educating staff on the topic of modern slavery can help to improve the company's reputation and brand. Consumers are increasingly aware of the issue of modern slavery and are looking for companies that are taking action to address it. By demonstrating a commitment to ethical and responsible business practices, companies can build trust and loyalty with their customers, which can have a positive impact on sales and revenue.
Finally, training and educating staff on the topic of modern slavery is a legal requirement under the Modern Slavery Act. The act requires businesses to take all reasonable steps to ensure that their staff are aware of the risks of modern slavery and the company's policies and procedures for addressing it. Failure to comply with the act can result in significant financial and reputational damage to the company, as well as potential legal action.
Australian Border Force - Modern Slavery Key Facts & Figures
In summary, the Australian Modern Slavery Act is an important piece of legislation that aims to address the issue of modern slavery in Australia. Businesses with an annual turnover of $100 million or more are required to report on the risks of modern slavery in their operations and supply chains, and the steps they are taking to address these risks. Training and educating staff on the topic of modern slavery is important for businesses to ensure compliance with the act, improve their reputation, and take action to address this serious violation of human rights.
ESG&I. works with organisations providing tailored training and education on Modern Slavery, our team of experts can undertake an independent ‘Modern Slavery Health Check’ and identify any gaps or areas for improvement.
We assist with revisions of your Modern Slavery Statement and can also run deep analysis of your Supply Chain to assess and identify potential risks and compliance.
Resource – Modern Slavery Act 2018