Getting Guidance on the Commonwealth Modern Slavery Act – a seminar hosted by STOP THE TRAFFIK
Introduction
STOP THE TRAFFIK presented a terrific webinar on 9 April hosted by two very informative and passionate professionals, Paul Redmond from UTS and Rebecca Mills from the Australian Government Department of Home Affairs. These two strong advocates for eliminating modern slavery shared the latest news and insights into the Commonwealth Modern Slavery Act and the release of the Government’s new Draft Guidance for Reporting Entities document.
Background
The Commonwealth Modern Slavery Act 2018 requires entities (including foreign entities) conducting business in Australia with annual consolidated revenue of over $AUD 100 million to produce an annual modern slavery statement. The statement requires businesses to outline the actions they’ve taken to assess and address modern slavery risks in their operations and supply chains.
To ensure a high-level commitment, the statement must be approved by the board of directors, or equivalent, and signed by a director. It will also be made publicly available through an online central register.
The Act sets out seven mandatory criteria which require every statement to:
1. Identify the reporting entity
2. Describe the reporting entity’s structure, operations and supply chains
3. Describe the risks of modern slavery practices in the operations and supply chains of the reporting entity and any entities it owns or controls
4. Describe the actions taken by the reporting entity, and any entities it owns or controls, to assess and address these risks, including due diligence and remediation processes
5. Describe how the reporting entity assesses the effectiveness of these actions
6. Describe the process of consultation with any entities the reporting entity owns or controls (a joint statement must also describe consultation with the entity giving the statement)
7. Any other relevant information [1]
Modern Slavery Act 2018 Draft Guidance for Reporting Entities
The Australian Government Department of Home Affairs has created a draft guidance document to assist businesses to comply with the Commonwealth Modern Slavery legislation. It’s a really well written guide which helps businesses understand their reporting responsibilities and how to submit a modern slavery statement.
The Modern Slavery Act 2018 Draft Guidance for Reporting Entities document uses the language of the UN Guiding Principles on Business and Human Rights and references the UN Principles when it states, “Under the UN Guiding Principles on Business and Human Rights your entity has a responsibility to respect human rights. This includes taking action to prevent and mitigate and where appropriate remedy modern slavery in your entity’s operations and supply chains. Investors, business peers, civil society and governments expect you to understand and meet this responsibility”.[2]
The draft guide will assist entities that are required to report, and it also explains how companies who recognise the business case for opting in early can voluntarily submit a Modern Slavery statement. Each chapter will help you understand the reporting requirements and the appendices include valuable background information, recommendations and resources.
Key features of the guidance document include:
- a detailed section on how to report
- how to work with your suppliers
- useful information on indicators of modern slavery
- how to respond to cases of modern slavery
- how to work with the Government’s Modern Slavery Business Engagement Unit
- tips on writing a modern slavery statement
The draft guide is an excellent resource because it’s written in plain english and provides plenty of case studies.
Modern Slavery Business Engagement Unit
In addition to providing a guidance document to help businesses, the Department of Home Affairs has set up a Modern Slavery Business Engagement Unit which is responsible for implementing the Act and providing general advice and support to entities about compliance with the reporting requirements.
The Business Engagement Unit has 5 key functions:
- To provide advice and support to entities about compliance and reporting requirements
- Undertake awareness-raising and training about modern slavery and reporting requirements
- Promote best-practice and monitor compliance
- Administer the online central register for statements
- Coordinate the Commonwealth Modern Slavery Statement[3]
Additional support and advice is available for business by contacting the Modern Slavery Business Engagement Unit – email: slavery.consultatons@homeaffairs.gov.au
When do you need to report?
- First reporting period commences – 1 July 2019
- First reporting period ends – 30 June 2020
- First modern slavery statement due – 31 December 2020
Key messages for businesses to consider
- Understand the business case for compliance and communicate this through all levels of your business
- Ensure your human rights due diligence processes extend through all divisions of your business operations (HR, procurement, legal and financial –investments and lending)
- Take a risk-based approach to identify high-risk suppliers and determine the leverage you have to influence anti-modern slavery practices in your supply chains
- Look for opportunities to partner and collaborate with NGOs and industry peers
- Demonstrate improvement overtime and know that its ok to start at the beginning and develop a plan
- Commit to continual improvement and understand that different businesses will have different resources and capabilities
- Don’t panic if you find modern slavery because what matters is how you respond to it and how this is reported – being transparent is far better than providing empty aspirational statements
- Demonstrate leadership in your industry by proactively tackling modern slavery
Need help?
Addressing modern slavery impacts and broader human rights issues can be challenging and complex but we’re here to help.
We can help you:
· Educate your team on what is modern slavery
· Conduct a high-level risk assessment which maps your supply chain and identifies high-risk suppliers
· Mentor and support staff with the modern slavery due diligence process
· Document policies, procedures and action plans that address human rights and modern slavery
· Develop and implement remediation measures when modern slavery is found
We also provide tools, guides and templates that you can use directly with your suppliers in the due diligence process – you don’t have to create these from scratch!
Contact us now for a FREE CONSULTATION to see how we can work together to combat modern slavery.
[1] Australian Government Department of Home Affairs, Modern Slavery Act 2018 Draft Guidance for Reporting Entities
[2] Australian Government Department of Home Affairs, Modern Slavery Act 2018 Draft Guidance for Reporting Entities, p9, section 12.1
[3] Australian Government Department of Home Affairs, Modern Slavery Act 2018 Draft Guidance for Reporting Entities, p57, section 193.1