Update on the NSW Modern Slavery Act 2018

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I had the great pleasure of attending a business roundtable on 28 May to discuss key requirements of the NSW Modern Slavery Act. A key focus of the meeting was the NSW Government’s readiness to work with the business community to address the risks of modern slavery. 

The esteemed panel of speakers included:

-        Professor Jennifer Byrne - NSW Interim Anti-Slavery Commissioner, NSW Government

-        Paul Green - Former politician representing the Christian Democratic Party from 2011-2019

(Paul Green and the Christian Democratic Party introduced Australia's first anti-modern slavery bill to the New South Wales Parliament in 2018)

-        Kimberly Randle - Executive Director and Lawyer, FairSupply

-        Jeff Nagle - Co-Founder, FairSupply  

A Recap

The NSW Modern Slavery legislation applies to organisations with employees in NSW and an annual turnover of between AUD$50 million and AUD$100 million. Profession Byrne estimates that this will affect around 1600 organisations.

The NSW Modern Slavery Act 2018 asks companies to identify the risk of modern slavery occurring in their business operations and supply chains and to outline the steps they are taking to assess and address modern slavery risks.

Modern slavery is a process in which victims are objectified and stripped of their humanity and their control over their life. Modern slavery is defined as:

-        Slavery

-        Servitude

-        Debt bondage

-        Forced labour

-        Child forced labour

-        Deceptive recruiting

-        Forced marriage

-        Human, child and organ trafficking

Both the Commonwealth and the NSW Acts bring attention to companies’ supply chains because this is where the greatest risk of modern slavery lies. As Professor Byrne stated, modern Slavery is a deeply human, deeply global and deeply economic issue that will change the business landscape.

Update on NSW Modern Slavery legislation

Professor Jennifer Byrne shared her thoughts and insights on what the NSW Government wants to see achieved through the implementation of the NSW Modern Slavery legislation. She highlighted that:

-        Australian businesses have an opportunity to make a difference by the way they respond to cases of modern slavery, particularly in their supply chains.

-        The NSW Government’s preferred approach is to be consistent and complementary with the Commonwealth Modern Slavery Act, and the NSW Government will adopt the Commonwealth’s 7 reporting criteria.

-        There has been strong consultation between the Commonwealth and NSW Governments to ensure a streamlined approach.

-        Like the Commonwealth’s approach, the NSW Modern Slavery legislation is based on the UN Guiding Principles on Business and Human Rights and it implements the United Nations’ Protect, Respect and Remedy framework.

-        Reporting entities that generate an annual turnover between AUD$50 million and AUD$100 million can elect to report under the Commonwealth Modern Slavery Act 2018 rather than the NSW Modern Slavery Act 2018.

-        Reporting criteria will be subscribed in the regulations, as will be the detail of the Supply Chain Reporting Scheme.

-        The NSW Modern Slavery Statement will need to be submitted 6 months after the company’s end of financial year.

-        The NSW Act prioritises the wellbeing of the victims of modern slavery in NSW and a Modern Slavery Hotline will be set up to assist victims.

Professor Byrne also made the following very important point - the government wants to learn from business and collaborate to ensure there is meaningful change in addressing modern slavery risks.

The NSW Government website states:

“Everyone is responsible for operating at the highest ethical standards and the Act is an opportunity for shared learning with the business community in the fight against modern slavery. Collaboration strengthens our stance against modern slavery.

“As one of the largest procurers of goods and services in Australia, the NSW Government’s actions can make a difference around the world.”

NSW Government Procurement

The NSW Government has the purchasing power of over 35 billion dollars and is one of the largest procurers of goods and services in Australia.  Because of this, the government has significant influence and it is aware that the many businesses that supply it with goods and services will be impacted by the legislation’s requirement to report on and address modern slavery risks. 

The NSW Modern Slavery Act mandates that government agencies must take reasonable steps to ensure that goods and services procured by and for the agency are not the product of modern slavery.

The NSW Government is aware of how this will impact its suppliers and it is connecting with suppliers to better educate and inform them.  Companies that are supplying goods and services to NSW government agencies should take heed and consider how they will assess and address the risks of modern slavery in their operations and supply chains.

Conclusion

Both the Commonwealth and the NSW governments have made it very clear that this legislation is seeking to change the operating ethos of companies so that awareness of modern slavery becomes part of a company’s DNA.

Professor Byrne indicated that the NSW Government is keen to engage and collaborate with reporting entities and is interested in fresh ideas and platforms to promote awareness of this very important issue and new legislation.

Ultimately, it’s clear that there are opportunities for business leaders to lend their influence to address modern slavery and improve the dignity and human rights of workers.  

So, get in touch or sign up for updates from the NSW Government.

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 modern slavery is

-        Conduct a risk assessment to assist in identifying 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 start from scratch!

Contact us now for a FREE CONSULTATION to see how we can work together to combat modern slavery.