Information for Commission Suppliers - modern slavery and human rights

‘Modern slavery’ refers to a range of serious forms of exploitation, including forced labour, child labour, debt bondage, human trafficking, slavery and servitude. There are an estimated 40 million victims of modern slavery worldwide. [1]

It may seem unlikely that modern slavery could be present anywhere in your business or your business’ supply chains. However, modern slavery can be found in any sector, and occurs in all countries, including Australia. Modern slavery can be hard to spot and is often described as being ‘hidden in plain sight.’ Modern slavery involves coercion, threats or deception, to exploit victims or deprive them of their freedom. 

‘In an increasingly globalised and interconnected world, there is a high risk Australian businesses are exposed to modern slavery risks and that Australian goods and services are tainted by modern slavery.’  – Australian Government in the Explanatory Memorandum to the Modern Slavery Bill 

Modern slavery crimes are serious human rights violations, which distort markets, undercut responsible business and pose reputational and legal risks for business. 
 

[1] According to the United Nations and the Walk Free Foundation 

 

• The modern slavery law applies to the Commonwealth Government and entities with an annual consolidated revenue of $100 million or more, of which there are approximately 3,000 (reporting businesses).
  
   
• The law requires the Government and reporting businesses to prepare an annual modern slavery statement describing the steps they are taking to assess and address modern slavery risks in their operations and their supply chains globally. 
  
   
• The statements will be published by the Government on a national, online register. Statements are expected to be scrutinised by NGOs, consumers and investors. 

If you think your business may need to report under the Act please visit: 

https://www.homeaffairs.gov.au/criminal-justice/Pages/modern-slavery.aspx

 

Even if the law does not apply to your business, the law may still have some implications for your business. If your business supplies goods or services to Commonwealth Government agencies or a reporting business, your business is considered part their supply chain. 

In response to the law, the Commonwealth Government and many reporting businesses are reviewing the modern slavery risks in their supply chains, to help them prepare their modern slavery statement. Part of this process includes engaging with their suppliers, especially those that provide goods or services that pose higher modern slavery risks. 

In the future, businesses that supply goods and services to a reporting business or to the Commonwealth Government may be asked about their awareness of modern slavery. For example, by: 

• requesting information from your business about your own suppliers, including their country of origin
• surveying your business to understand how you are tackling modern slavery risks in your operations and supply chains
• addressing modern slavery risks in supplier contracts, prequalification and other mechanisms.

As part of our commitment to human rights, the Commission is taking steps to address modern slavery risks in our supply chains, including by awareness raising with our suppliers and other measures. The Commission has introduced a new Responsible Sourcing Policy (see below) which will apply to our suppliers.

Modern slavery exists in every sector and in every country, however some are more exposed than others. For example, you may have modern slavery risks in your business’ supply chain if you source from countries where modern slavery is prevalent due to factors such as inadequate labour protections for workers, poverty, conflict or significant migrant flows. The Global Slavery Index 2018 provides data about modern slavery in each country. [2]

Certain sectors and industries (including in Australia) have higher risks of modern slavery, such as those that tend to use foreign workers, unskilled, temporary or seasonable labour or short-term contracts and outsourcing. Examples of sectors or industries that are recognised globally as high risk for modern slavery include cleaning, security, extractives, electronics, construction, agriculture, textiles and fashion. Similarly, certain products or services have higher risks of modern slavery because they are often provided or produced in conditions where labour exploitation is prevalent. Well known examples of high risk products globally include cobalt, cocoa, bricks, cotton, rubber, garments and electronics.[3]  

 

[2] See The Global Slavery Index 2018 at https://www.globalslaveryindex.org/resources/downloads/



[3] See Australian Department of Home Affairs, Commonwealth Modern Slavery Act 2018: Guidance for Reporting Entities (2019), 44 and 80-81and the UK Government’s, Tacking Modern Slavery in Government Supply Chains (2019), 19-20 https://assets.publishing.service.gov.uk/government/uploads/system/uplo…

 

• The Commonwealth Government has provided guidance to support reporting businesses on how to respond to their modern slavery risks. This guidance also provides insights for businesses that do not have to report, about practical steps you can take to understand and manage your modern slavery risks. 
  
   
• Modern Slavery Act 2018: Guidance for Reporting Entities, see https://www.homeaffairs.gov.au/criminal-justice/files/modern-slavery-re…
  
   
• Anti-Slavery Australia also has a range of resources on modern slavery, see: https://antislavery.org.au/modern-slavery/

This Factsheet is drawn largely from the Department of Home Affairs, Commonwealth Modern Slavery Act 2018: Guidance for Reporting Entities (2019), 16, 44 and 80-81 at https://www.homeaffairs.gov.au/criminal-justice/files/modern-slavery-re… and the Department of Home Affairs website, ‘Modern Slavery’ at https://www.homeaffairs.gov.au/criminal-justice/Pages/modern-slavery.as…