Modern slavery: what Australian businesses need to check

Modern slavery covers forced labour, debt bondage, deceptive recruitment, human trafficking, forced marriage and child labour. Australian businesses have two sets of duties that touch on it. Under the Commonwealth Modern Slavery Act 2018, larger entities must publish an annual statement on the modern slavery risks in their operations and supply chains. Under WHS laws, you must protect the health and safety of every worker, including people engaged through labour hire or contractors. Checking who is doing the work, and under what conditions, is the practical place to start.

What is modern slavery?

Modern slavery is exploitation that takes away a person's freedom and dignity. It doesn't always involve chains or locked doors. More often, it relies on control: debt, threats, withheld pay or documents, and isolation. The main forms are:

• Forced labour: work that a person is coerced into, often under threat of penalty or to pay off a debt.
• Debt bondage: being held to work to repay a loan or a recruitment fee that never falls.
• Human trafficking: recruiting, moving or holding people through force, deception or coercion to exploit them.
• Deceptive recruitment: promising pay and conditions that don't exist once the worker arrives.
• Forced marriage and child labour: exploitation of people who can't freely refuse or leave.

Who is at risk in Australian workplaces?

Exploitation tends to happen where workers are dependent and hard to reach. Temporary and migrant workers, people engaged through labour hire, and workers with limited English are most exposed. So are people working in isolated locations or in sectors that rely heavily on casual or subcontracted labour.

Look for the warning signs below. A single sign doesn't prove exploitation, but several together should prompt a closer look.

What the Modern Slavery Act requires

The Commonwealth Modern Slavery Act 2018 requires certain large entities to publish a modern slavery statement each year. The statement describes the entity's structure and supply chains, the modern slavery risks it has found and the actions it has taken to address them, and how it measures whether those actions work. Whether you're a reporting entity depends on the revenue test in the Act, so check with the Department of Home Affairs before assuming you're out of scope.

New South Wales has its own Modern Slavery Act 2018 with its own thresholds and obligations, which apply to certain agencies and suppliers. Check whether it applies to you as well.

Even if you aren't required to publish a statement, the same questions are useful to answer. Who does your work? Who supplies it? What would you do if you found exploitation?

WHS duties that also apply

The WHS Act doesn't mention modern slavery, but the duty it places on you is broad. Under the primary duty of care, you must keep workers safe so far as is reasonably practicable. That covers workers engaged through labour hire and contractors, not just your direct employees.

In practice, that means you can't outsource the duty. Section 14 says a duty can't be transferred to another person, so a labour hire agency's assurances don't remove your responsibility. Workers who fear losing their job or visa are also less likely to report hazards or injuries, which is a safety risk in its own right. Consulting them, as the Act requires, helps you hear what they're not saying. For how responsibility is shared across a business, see who is responsible for workplace safety and health.

Practical checks to run now

1. Map your supply chain. List every labour hire agency, contractor and subcontractor that puts people on your sites, and who they use in turn. Our guide to managing contractors and their WHS documentation covers what to ask for at each tier.
2. Ask for worker information. For each labour hire arrangement, ask for how workers are recruited, how they're paid and who holds their documents. Keep the answers on file.
3. Check pay and hours. Compare timesheets and payslips with the applicable award or agreement, at least for a sample of workers.
4. Talk to workers privately. Use an interpreter where needed, and make sure no supervisor or agent is in the room.
5. Give people a way to raise concerns. Set up a reporting route that doesn't go through the person they're complaining about, and make it clear that raising a concern won't cost them work.
6. Put it in writing. Include modern slavery in your supplier conditions, your labour hire contracts and your modern slavery policy. Our modern slavery policy template is a starting point, and the labour hire host evaluation checklist helps when you're assessing an agency.
7. Review it. Check the arrangements at least once a year, and after any change in supplier or site.

If you find exploitation

Act quickly, and keep the worker's safety and wellbeing at the centre of what you do.

• Stop any unsafe work and make sure the worker has somewhere safe to be.
• Don't confront the person responsible, and don't warn them in advance.
• Report suspected human trafficking or forced labour to the Australian Federal Police. Wage underpayment is handled by the Fair Work Ombudsman.
• Get legal advice before making decisions about the worker's employment or contract.
• Record what you saw, what you did and who you told.

How SafetyDocs helps

SafetyDocs covers the WHS side of this work. You can start from expert-written templates for a modern slavery policy, a labour hire management plan and a contractor pre-qualification checklist. Documents can be sent to your crew in their own languages, with the English original kept as the record. Workers sign free from a text, link or QR code on any phone, with no app or account needed.

When a document changes, everyone who signed is asked to sign the new version, so you have a dated record of what was in place. It helps you meet your WHS duties. It doesn't replace the due diligence or reporting that the Modern Slavery Act requires, and it doesn't make you compliant on its own.

Common questions

Does the Modern Slavery Act apply to my business? It applies to reporting entities, which are defined by a revenue test in the Act. Check with the Department of Home Affairs, or get advice, before you assume you're outside it.

What is a modern slavery statement? It's an annual public report on the risks of modern slavery in your operations and supply chains, and the actions you've taken to address them.

Am I responsible for the safety of labour hire workers? Yes. Your WHS duty covers workers engaged through labour hire and contractors, and you can't transfer it to the agency.

What should I do if I suspect a worker is being exploited? Make sure the worker is safe, don't alert the person responsible, and report suspected trafficking or forced labour to the Australian Federal Police. Get legal advice before you act on the employment side.

This is general information, not legal advice. Check the current law with your WHS regulator.