Improving approaches to tackling modern slavery

A majority of survey respondents agreed that a range of incentives and/or penalties would increase compliance with the MSA. There was the highest support for disqualification from government tenders, with 60% of the survey respondents agreeing that this measure would incentivise their company to improve its approach to tackling modern slavery.6 Additionally, most respondents agreed (to some degree) that the risk of financial penalties (54%) and imposition of directors’ legal liability (55%) would have a similar incentivising effect.

Penalties

The civil society and union focus group participants were in favour of financial penalties and directors’ liability, but wanted these sanctions to be highly targeted, with safeguards against the passing on of responsibility. Civil society participant, Focus Group 4 described this as follows:

“

It depends on the circumstance. I think depending on the level of culpability, you’d want to tailor your sanctions based on that. So is it a direct personal fine as we see in the Fair Work Act where there is an ability to both fine the company and fined the directors, and there are safeguards against the company paying the fine of the individual as well?”

‘The risk of disqualification from government tenders would further incentivise my company to improve its approach to tackling modern slavery’

‘The risk of financial penalties for the company would further incentivise my company to improve its approach to tackling modern slavery’

‘The risk of directors’ legal liability would further incentivise my company to improve its approach to tackling modern slavery’