The Australian Government’s 5-year plan to combat modern slavery – what does it mean for business?
VANESSA ZIMMERMAN | CEO
RIANA CERMAK | ADVISOR
Five reasons the new Australian Government Action Plan to combat Modern Slavery is relevant for business
Businesses can anticipate an ongoing Government focus on modern slavery risk management in business operations and supply chains, with the NAP cementing business engagement in Australia’s response to modern slavery.
The NAP reaffirms the Government’s expectation that all businesses respect human rights, recognising the UN Guiding Principles on Business and Human Rights (UNGPs) as the leading set of guidelines to prevent, address and remedy adverse business-related human rights impacts.
The NAP emphasises the importance of business providing effective and appropriate remedy, and the Government has committed to working with business to improve pathways to remedies for impacted persons in line with the UNGPs.
The Government will increase efforts to highlight innovative and collaborative business actions to address modern slavery risks through a formal Modern Slavery Recognition Scheme.
The NAP highlights the importance of collaboration to combat modern slavery, and the Government has committed to hosting a National Modern Slavery Conference to bring together civil society, business, and other relevant stakeholders to drive action.
On 9 December 2020, the Australian Government launched its five-year National Action Plan to Combat Modern Slavery (NAP). This was the result of a year-long consultation process that heard from civil society groups, peak bodies, business, unions, academics, service providers, anti-slavery networks, and international organisations.
The NAP outlines the Australian Government’s strategic framework to combat modern slavery. It is not a legislative instrument, but it builds on the foundations of the Modern Slavery Act 2018 (Cth) (MSA) that came into force on 1 January 2019. In particular, the NAP will inform the implementation of the MSA and provide means for the Government to support businesses to comply with the MSA’s reporting requirements. The NAP has a broader focus than the MSA though, looking at Australia’s whole of community response to modern slavery, including support for survivors of modern slavery.
The NAP cements business engagement into Australia’s response to modern slavery at home and abroad for the next five years and means business can anticipate an ongoing Government focus on modern slavery risk management in Australian business operations and supply chains. As explained below, this will include efforts to increasingly recognise good practice, as well as improving business responses to modern slavery, including around remediation for survivors.
The NAP identifies 46 specific areas for Government action to combat modern slavery across five strategic priorities:
Prevent
Disrupt, Investigate and Prosecute
Support and Protect
Partner
Research
What does each strategic priority mean for business?
Within each priority area, the Government highlights key steps it will take to work with different stakeholders, including business. We have summarised some of the key insights and commitments that are most relevant to businesses below.
PREVENT
The NAP highlights the MSA as an important step in the prevention of modern slavery, expressly recognising the responsibility of businesses to respect human rights in their business activities and the vital role businesses play in combating modern slavery in global supply chains.
The Government has reaffirmed its commitment to proactively work with Australian businesses to identify and address modern slavery risks in their global operations and supply chains, including by providing further information and guidance to businesses about modern slavery risk management and compliance with the MSA. The Government also commits to further action to tackle modern slavery risks in its own procurement and investments, which will have flow on effects on businesses in key sectors with high levels of Government expenditure, such as construction, IT and textiles.
DISRUPT, INVESTIGATE AND PROSECUTE
The NAP does not mention business in the disrupt, investigate and prosecute priority section. However, it is likely that this priority will be relevant to business as it outlines the Government priorities related to increased enforcement of existing laws, and working with overseas partners to develop and implement effective laws to identify, investigate and prosecute modern slavery crimes. As such, it is likely to disrupt forms of modern slavery in business operations in Australia and overseas supply chains.
SUPPORT AND PROTECT
The NAP identifies holistic and tailored support for survivors as a fundamental priority, and the need to work with civil society and business to achieve this end. The Government has also committed to working with business to improve pathways to effective remedies for impacted persons, in line with the UNGPs.
Early reporting under the MSA suggests that many Australian businesses are currently still developing their remediation processes. Further Government action and guidance on this issue under the NAP will help equip Australian businesses to better address modern slavery cases uncovered as part of MSA reporting.
PARTNER
The NAP emphasises the need for collaboration between government, international partners, civil society, business, unions and academia to ensure a coordinated response to the complex challenges related to addressing modern slavery.
Most relevantly for Australian businesses, the Government has committed to:
Develop a Modern Slavery Recognition Scheme for business to highlight innovative and collaborative actions to address modern slavery risks in supply chains; and
Host a National Modern Slavery Conference to bring together civil society, business, and other relevant stakeholders to drive action to tackle modern slavery.
The NAP recognises the important work of all stakeholders to combat modern slavery, including different civil society actors and those working with survivors. It is expected that there will be more opportunities for businesses to work with these groups, not only to tackle the root causes of modern slavery, but also to support survivors.
RESEARCH
The NAP highlights the need to strengthen data collection processes to ensure more evidence-based responses to modern slavery. A key element to do so is the Modern Slavery Register, which will increase the available information and data on modern slavery risks through publication of modern slavery statements. The Government will also fund academic, civil society and business research on modern slavery in Australia. This increased focus on research will support businesses to refine their responses to modern slavery risks by improving the available evidence and research about modern slavery in Australia.
The Government also expressly commits to reviewing the action items set out in the NAP to assess whether it is necessary or appropriate to amend or add others. Lessons from this evaluation process may also be helpful for businesses as they seek to develop their own evaluation mechanisms for modern slavery risk management.
What does the National Action Plan say about respect for human rights by Australian business?
While the NAP focuses specifically on efforts to address modern slavery risks, it also reaffirms the Government’s expectation that all businesses should respect human rights. It also reiterates the Government’s support for the UNGPs. The NAP recognises the UNGPs as the “leading set of guidelines for States and business to prevent, address and remedy human rights abuses linked to business activity”.