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ARTICLE · 16 DECEMBER 2019

Modern slavery emerges as a major reputational issue

Companies tackling the use of forced labour in international supply chains face challenges in adapting to these new laws.

AustraliaCorporate/Commercial Law

Throughout 2019 we've seen media reports on the use of forced labour in the manufacture of Australian goods.

This insidious form of modern slavery is why the Federal Government enacted new legislation in a welcome move to clamp down on this practice.

However while the intention is right, the reality is companies tackling the use of forced labour in their international supply chains face major challenges in adapting to these new laws.

That's because the Modern Slavery Act lacks any real detail on what companies are expected to do in practical terms in ensuring their supply chains are slavery free.

Instead, a mandatory reporting system under the legislation puts the onus on large companies to self-report on their supply chain monitoring and risk assessment processes, with details then being available publicly.

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