modern slavery act australia reporting requirements

By signing up, you agree to receive commercial messages from us. MODERN SLAVERY ACT REPORTING UPDATE: NOVEMBER 2020 On 27 November 2020, the Australian Border Force (ABF) published the first tranche of modern slavery statements (statements) submitted under the Commonwealth Modern Slavery Act 2018. The Australian Government considers that there is a high risk of Australian businesses being exposed to modern slavery risks on the basis that, traditionally, Australia has had a strong presence in ‘high risk’ sectors and industries (for example, agriculture, construction, electronics, extractives, fashion and hospitality), and many Australian businesses have supply chains that extend throughout the Asia-Pacific which is often identified by international labour organisations as being a ‘high risk’ region. For example, servitude, forced labour, forced marriage, debt bondage, deceptive recruiting for labour or services, organ trafficking and using children for prostitution or dangerous work fall within its scope. all Australian entities, and entities carrying on business in Australia during a financial year, with consolidated revenue of at least $100 million for that financial year (being the total revenue of that reporting entity and any entities it controls where those entities are considered as a group under Australian Accounting Standards); a corporate Commonwealth entity or a Commonwealth company with a consolidated revenue of at least $100 million for the year. The first Modern Slavery Statements (MSS) under the Modern Slavery Act 2018 (Cth) (Federal Act) are due to be lodged in the coming months (see table below). We are recognised as a foremost authority in law and go-to organisation for legal expertise. Federal Government Bill and NSW legislation introduce mandatory reporting on modern slavery risks and actions. It is important that entities falling within the ambit of the Act continue to take steps to marshal the necessary information required to fulfil their reporting obligations under the Act, and that they allow sufficient time to develop and implement actions to assess and address modern slavery practices notwithstanding the impact of COVID-19. The . This Act is the Modern Slavery Act 2018. Thus, the NSW Act will likely apply only to entities that satisfy the above criteria, but do not have an annual total revenue of over AUD$100 million. This introductory chapter explains the context for the Modern Slavery Reporting The legislation is likely to be in force in early 2019. . Modern slavery is not confined to far-off places. This allows a holding company to submit a Statement on behalf of its subsidiaries and other entities in its group. By continuing to use our website, we understand that you are happy for us to do this. The guidance offers basic information about the act such as the entities . Failure to comply with the MSA or the NSW Act may damage significantly an entity’s reputation, harm investor confidence and undermine its ability to do business with other entities. It also recommends that companies collaborate with their suppliers and human rights groups to seek and obtain information on modern slavery risks and identify opportunities for action. $100 million consolidated revenue per financial year. You may unsubscribe at any time. BACKGROUND AND SCOPE OF COVERAGE - Australia's Modern Slavery Act 2018 (MSA) entered into force on January 1, 2019. However, it is likely that a NSW Statement will be required to contain information similar to that required in a Statement. When preparing a Statement, reporting entities should consider developing various business practices to complement its obligations under the MSA and to ensure that a fulsome Statement is prepared. If an entity fails to comply with that request, the Minister may publish the identity of the entity and further details relating to the non-compliance. I like the fact that the email contains a short indication of the subject matter of the articles, which allows me to skim the newsfeed very quickly and decide which articles to read in more detail. Interestingly, the NSW Act is the first statute globally to impose monetary penalties for failure to identify and manage modern slavery risks. The ABF recommends that modern slavery risks be identified and considered as part of broader updates to the board or executive on the effect of COVID-19 on the business. Under the new Commonwealth Modern Slavery Act, Australian businesses with an annual consolidated revenue of more than $100 million must report on their risk of modern slavery. Non-compliance could have significant reputational and goodwill impacts, particularly for large and well-known companies. We bring together lawyers of the highest calibre with the technical knowledge, industry experience and regional know-how to provide the incisive advice our clients need. Our personal approach, technical expertise, local knowledge and global network enable us to deliver an experience that other professional service providers find hard to match. Information required in modern slavery statement. In its 2018 Statement, Qantas indicated that it had begun drafting a comprehensive statement of its commitment to human rights. The new tapered insolvency measures: back to business as usual? The explanatory memorandum indicates that the Act will most likely be effective for reporting periods commencing on or after 1 January 2019. This new legislative regime in Australia has been largely inspired by existing modern slavery and transparency legislation in the UK and the USA, however the Modern Slavery Act 2018 (NSW) (NSW Act), which is yet to commence, is the first statutory scheme internationally that includes penalties for non-reporting. Our Statement has been prepared in consultation The Act will introduce a modern slavery reporting requirement (extending to an entity's supply chains) designed to strengthen Australia's response to modern slavery. The Act is intended to have broad application. Find out more about business response to the Coronavirus outbreak: www.homeaffairs.gov.au/criminal-justice/files/modern-slavery-covid-19.pdf, www.homeaffairs.gov.au/criminal-justice/files/modern-slavery-reporting-entities.pdf, www.whitecase.com/sites/whitecase/files/files/download/publications/modern-slavery-act-update-note.pdf, clearly explain in their modern slavery statements how COVID-19 has impacted their capacity to assess and address modern slavery risks during their reporting period; and. supplies goods and services in New South Wales; has a total revenue exceeding AUD$50 million in its financial year. the parts of their operations that have been reduced or shut down due to COVID-19, and any supply chains that have been restructured or newly established due to COVID-19 (including, for example, sourcing personal protective equipment for workers, such as masks and rubber gloves); how COVID-19 may be increasing modern slavery risks in their operations and supply chains; actions undertaken (i) prior to COVID-19 to address modern slavery risks and how COVID-19 has affected their ability to undertake these steps, (ii) in response to COVID-19 to address new or heightened risks, such as reviewing new resources, consulting with business peers/other key stakeholders, updating risk assessments and requiring suppliers to provide similar information in relation to the impact of COVID-19 on modern slavery risks for their business, and (iii) after the reporting period due to delays caused by COVID-19; and. This therefore includes foreign entities operating in . The final Commonwealth Guidelines state if your organisation must report under the Modern Slavery Act and the UK Modern Slavery Act, it can submit the same statement but must ensure it meets all of the mandatory criteria to comply with the Modern Slavery Act. The Modern Slavery Act 2018 (Cth) (Act) requires large Australian entities and foreign entities carrying on business in Australia to report annually on the risks of modern slavery in their operations and supply chains and the actions taken to address those risks. Objective theory of contract: can courts fix a mistake? "I have enjoyed receiving the Lexology newsfeeds over the last few months and in general find the articles of good quality and relevant. © 2020 White & Case LLP, Modern slavery reporting requirements in Australia and the impact of COVID-19: What you need to know. We expect that the Bill, if passed, will be prescribed as a corresponding law such that organisations required to comply with the federal reporting regime are not required to also report under the NSW regime. The research finds that most companies complied with the minimum requirements of modern slavery reporting, with clear groups of leaders and laggards within the ASX200. The Australian Department of Home Affairs recently released a companion document to the Australian Modern Slavery Act of 2018 (MSA). In the case of a company, this means that the modern slavery statement will need to be approved by the board of directors of the company and signed by a director. In Australia, it's estimated that around 15,000 people may live in conditions of modern slavery, forced labour, wage exploitation, human trafficking or debt bondage. The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.Readers should take legal advice before applying it to specific issues or transactions. We use cookies to improve your experience on our website. In brief. Commonwealth Government departments are also required to comply with the Act. While this approval is often straightforward for companies reporting on a standalone basis, in the context of larger corporate groups the complexity and risks for boards are significantly higher. However, the upcoming deadlines for submission of modern slavery statements have recently been extended by the Commonwealth Government to account for the effects of COVID-19. Similar to the United Kingdom's Modern Slavery Act 2015, the final report recommends a mandatory supply chain reporting requirement that would require all entities operating in Australia with an annual revenue of over $50 million, regardless of where they are headquartered, to report on modern slavery risks in their global supply chains. established Australia's national Modern Slavery reporting requirements in legislation. Senate recommends strengthening modern slavery diligence and reporting requirements for Australian companies Background. On 1 January 2019, the Modern Slavery Act 2018 (Cth) (Commonwealth Act) commenced, heralding a new statutory modern slavery reporting requirement for larger companies operating in Australia.Who needs to report? The NSW legislation also establishes an Anti-slavery Commissioner. After a year-long inquiry, a parliamentary committee has recommended that Australia establish a Modern Slavery Act, including mandatory reporting for large businesses on modern slavery risks in their operations and supply chains. Amy SINCLAIR* and Justine NOLAN** Keywords: Australia, due diligence, modern slavery laws, UN Guiding Principles on Business and Human Rights I. I Governments are increasingly introducing legislative measures imposing reporting requirements on corporations to address a range of human rights abuses including modern slavery. How often do statements need to be produced? While similar laws exist in other countries such as the United Kingdom (see, for example, White & Case’s note on the operation of the Modern Slavery Act in the United Kingdom8), each reporting entity will need to ensure that it complies with the requirements of the Act. Reporting entities will need to act promptly to prepare for the new modern slavery reporting requirements. The Modern Slavery Act 2018 (NSW) (NSW Act) requires all entities that carry out business in Australia with a minimum annual revenue of 100 million AUD to annually report to an online central register on the risk of modern slavery in their operations and supply chains. If you have forgotten your password, you can request a new one here. A public register will also be established. In Australia, the Modern Slavery Act 2018 commenced operation on 1 January 2019, creating reporting obligations for certain entities. The Federal Bill follows NSW legislation assented to last week, with similar reporting requirements but broader application. Australia's version of the law actually goes further than the British version, so compliance with it is going to take some dedicated attention. This will include details of the following in respect of each reporting entity: The most significant difference between the MSA and the NSW Act is that, under the NSW Act, a maximum penalty of 10,000 penalty units (AUD$1,100,000) may be imposed on a reporting entity that fails to prepare a Statement, fails to make its Statement public, or provides information which it knows, or ought reasonably to know, is false or misleading. The interim report recommends: The Government should support the introduction of a Modern Slavery Act in Australia The Act should establish supply chain reporting requirements for Australian companies The Act should also provide for the appointment of an independent Anti-Slavery Commissioner The Government has subsequently published a consultation paper which makes clear that Access all of the content that you have previously selected to bookmark. At Ashurst, we believe innovation means only one thing: continuous and disruptive improvement in all that we do - for the benefit of our clients, our employees and our wider corporate social responsibility. 6 According to the guidance note issued by the Australian Government, ‘best practice’ is that this should be the chair of the board or the Chief Executive. Organisations covered by the NSW legislation will be required to prepare a modern slavery statement for each financial year of the organisation. The Act . Become your target audience’s go-to resource for today’s hottest topics. The Modern Slavery Act 2018 (Cth) (Act) requires large Australian entities and foreign entities carrying on business in Australia to report annually on the risks of modern slavery in their . 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