Modern slavery statement – is yours compliant?

The Modern Slavery Act 2018 ("Modern Slavery Act") requires certain entities to report on the risks of modern slavery in their operations and supply chains and actions to address those risks, and for related purposes. This obligation exists on entities that are based, or operating, in Australia, which have an annual consolidated revenue of more than $100 million, and they must report annually on the risks of modern slavery in their operations and supply chains, and actions to address those risks.

There are different requirements for the statements depending on if it's a statement for a single reporting entity, or a joint statement, however each statement must comply with section 16 of the Modern Slavery Act, and must (amongst other things) include the following information:

1. identify the reporting entity; and
2. describe the structure, operations and supply chains of the reporting entity; and
3. describe the risks of modern slavery practices in the operations and supply chains of the reporting entity, and any entities that the reporting entity owns or controls; and
4. describe the actions taken by the reporting entity and any entity that the reporting entity owns or controls, to assess and address those risks, including due diligence and remediation processes; and
5. describe how the reporting entity assesses the effectiveness of such actions; and
6. describe the process of consultation with:
   • any entities that the reporting entity owns or controls; and
   • in the case of a reporting entity covered by a statement under section 14 of the Act—the entity giving the statement; and
7. include any other information that the reporting entity, or the entity giving the statement, considers relevant;

There are further requirements that are required to be included, but this will depend on the nature of the modern slavery statement.

If the Minister reasonably believes an entity has failed to comply with the requirements of giving a Modern Slavery Statement, the Minister may request an explanation for why the entity failed to comply, and/or request the entity undertake specified remedial action in relation to that requirement, and to do so within a specified period of 28 days or longer. If the Minister is reasonably satisfied that an entity has failed to comply with this request, then the Minister may publish the following information on the register, or in any other way the Minister considers appropriate:

1. the identity of the entity;
2. if the request relates to the entity's failure to comply with subsection 14(2) of the Modern Slavery Act (joint modern slavery statements) in relation to a modern slavery statement—the identities of the reporting entities covered by the statement;
3. the date the request was given, and details of any extension given under paragraph 2 above;
4. details of the explanation or remedial action requested, and the period or periods specified in the request;
5. the reasons why the Minister is satisfied that the entity has failed to comply with the request.

The modern slavery register is contained in the following link: https://modernslaveryregister.gov.au/, where modern slavery statements are published, but this does not mean the published statements meet the requirements under the Modern Slavery Act, and entities could still be contacted by the Minister for failure to comply.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.