The report, Broken Promises: Two years of corporate reporting under Australia’s Modern Slavery Act, examines the second year of corporate statement submitted to the government’s Modern Slavery Register by 92 companies sourcing from four sectors with known risks of modern slavery: garments from China, rubber gloves from Malaysia, seafood from Thailand and fresh produce from Australia. 

Findings showed: 

• Sixty per cent of companies are failing to comply with basic reporting requirements, some companies are not submitting reports;
• Fifty-six per cent of commitments made in the first year of reporting remain unfulfilled;
• Forty-three per cent of companies are failing to identify obvious risks in their supply chains; and
• Every two out of three companies are failing to act. 

• Introducing penalties for companies that fail to comply with the act; 
• Requiring companies to undertake due diligence to address and prevent modern slavery in their operations and supply chains; and
• Ensuring oversight and enforcement by appointing an independent anti-slavery commissioner.

“Our modern slavery laws need to evolve so that they put people, rather than paperwork, at their centre.”

“Too many companies are still failing to identify obvious risks or are simply making vague promises that are not being fulfilled,” stated Professor Justine Nolan, director at the Australian Human Rights Institute (UNSW Sydney).

“In-house legal teams can play an important role in ensuring that companies are taking meaningful steps towards addressing modern slavery risks in their operations and supply chains,” Ms Dinshaw told Lawyers Weekly.

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“For example, ensuring that human rights and modern slavery policies are deeply embedded within company practice, establishing human rights due diligence processes to identify and act on modern slavery risks, and preparing the company to develop a survivor-centred approach to remediation in the event that exploitative practices are uncovered.”

The HRLC has today (22 November) released a proposed model amendment to the act, which would introduce a new “duty to prevent” modern slavery for companies with an annual turnover of over $100 million. 

The proposed amendment would allow workers subjected to modern slavery to seek direct remedy from companies, unless the company can demonstrate that it took all reasonable steps to prevent it from occurring.

Consistent with reporting obligations, the duty would apply to companies’ domestic and overseas operations and supply chains.