02 Dec 2024

Australia needs stronger modern slavery laws to protect workers and businesses

The Albanese Government’s weak response to strengthening the Modern Slavery Act has sparked criticism over Australia’s failure to combat modern slavery effectively.

Australian Parliament in Canberra
Photo Credit: georgeclerk.

A 2023 review of the Act called for the introduction of due diligence obligations similar to the European Union’s newly adopted Corporate Sustainability Due Diligence Directive as well as the introduction of penalties.

However, after taking 18 months to consider the recommendations, the Albanese Government has not implemented these key recommendations and instead has merely called for further consultation.

“The government has once again demonstrated that their commitment to protecting fundamental human rights is little more than lip service ” Walk Free’s Founding Director Grace Forrest says.

Modern slavery laws without complementary enforcement mechanisms simply do not work in practice.

What Australia can learn from Europe’s Modern Slavery Directive

The European Union’s Directive will soon require large businesses to identify and address human rights abuses, including modern slavery, within their supply chains. This move is clearly guiding the business sector in the right direction towards reform.

“But by not adopting similar legislation, the Australian Government is failing vulnerable workers worldwide and Australian businesses,” Grace explains.

“A proactive approach now would have positioned Australian businesses as preferred suppliers to Europe. Instead, the government has chosen to ignore an opportunity to support both human rights and economic growth.”

Modern slavery remains an overlooked crisis in Australia

Our latest Global Slavery Index reveals that 41,000 people are living in modern slavery in Australia.

The country also imports more than AUD 25 billion worth of goods at risk of modern slavery annually.

Over 28 million people are in forced labour globally on any given day.

“The current Modern Slavery Act merely asks companies to report on what they are doing to combat modern slavery, which is no longer sufficient,” Grace says.

“The ‘race to the top’ that reporting requirements were meant to inspire simply hasn’t materialised.”

Missed opportunities to protect workers and prepare businesses

Failing to strengthen the Act represents a significant setback for human rights and business.

“Some Australian companies have taken commendable steps to address modern slavery, but without strong laws, their competitors can do nothing and they remain at a disadvantage,” Walk Free’s Director of Business and Human Rights Serena Grant said.

“Through the statutory review, the government has already run a detailed consultation with business and other stakeholders. It is disappointing that the government has chosen to redo this process when the recommendations for penalties and due diligence systems were already so clear.

“This is also a missed opportunity to help Australian businesses prepare for the EU’s due diligence requirements, which will come into force in 2027. Instead of leading the way, Australian companies will now be left scrambling to meet international standards.”

Strengthening the Modern Slavery Act is essential

With the rise of modern slavery in Australia and its supply chains, advocates argue that bold legislative changes are urgently needed.

We’re calling on the Australian Government to act decisively and introduce due diligence laws to protect vulnerable workers and ensure businesses can thrive in a global market increasingly focused on human rights.

New anti-refugee laws also increasing vulnerabilities to modern slavery in Australia

The Albanese Government must also do more to address the drivers of modern slavery at home and abroad. Recent amendments to the Migration Act will increase risks for vulnerable refugees and asylum seekers.

The Migration Amendment Bill 2024, Migration Amendment (Prohibiting Items in Immigration Detention Facilities) Bill 2024, and Migration (Removals and Other Measures) Bill 2024 were rushed through Parliament last week.

Refugees face disproportionate risks of modern slavery due to compounding vulnerabilities, including isolation, lack of access to basic needs, and threats of violence.

These systemic issues increase the likelihood of exploitation and abuse. Instead of addressing these factors, these policies worsen the dangers faced by refugees.

What can you do?

You can take immediate action by contacting your local MP or senator to express your concern about the government’s decision to reject stronger modern slavery laws.

A list of senators is available to help you find the name of your local senator and their contact details.