What criminal offence targets companies failing to prevent modern slavery?

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Australia Introduces Criminal Offence for Companies Failing to Prevent Modern Slavery in Supply Chains

Australia is set to introduce a new criminal offence targeting large companies that fail to prevent modern slavery within their supply chains. This significant legislative change, announced by Attorney General Michelle Rowland, will impose criminal liability on companies with revenues exceeding AUD$100 million if they do not take adequate measures to combat forced labour and debt bondage in their overseas operations. The proposed law includes a defence for companies that can demonstrate they have taken reasonable steps to prevent such practices.
New Criminal Offence for Companies Exceeding AUD$100 Million in Revenue

The core of the upcoming legislative reform involves establishing a new criminal offence specifically aimed at larger corporations. Companies generating over AUD$100 million in annual revenue will be held accountable if modern slavery, encompassing forced labour and debt bondage, is found within their supply chains operating outside of Australia. This measure represents a significant strengthening of existing regulations, moving beyond reporting requirements to direct criminal liability.
Defence Available for Companies Demonstrating Due Diligence

Under the proposed legislation, companies will have an avenue for defence if they can provide evidence of having implemented reasonable steps to prevent modern slavery. This provision acknowledges the complexities of global supply chains and allows for a defence based on demonstrable efforts and due diligence, rather than an absolute liability for any instance of modern slavery occurring within their extended operations.
Introduction of Civil Penalties for Existing Obligations

In addition to the new criminal offence, Australia will also introduce civil penalties for companies that fail to meet their current obligations under the existing Modern Slavery Act. This dual approach aims to enhance compliance by imposing financial consequences for non-adherence to established reporting and preventative measures, thereby reinforcing the overall framework for combating modern slavery.

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What criminal offence targets companies failing to prevent modern slavery?

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