Multinational organisations often face the challenge of navigating diverse legal frameworks when disclosing efforts to combat modern slavery, forced labour and child labour. In a significant step towards harmonisation, the UK Home Office, in partnership with the Australian and Canadian governments, has introduced an optional international reporting template.
The importance of reporting
In 2021, the International Labour Organisation estimated that 28 million people were trapped in forced labour globally, generating $236 billion in illegal profits. The Modern Slavery Act 2015 (the Act) consolidated the UK’s legal framework on trafficking and slavery. The Act compels commercial organisations to report their efforts to address the risks of modern slavery in all aspects of their business.
With legislation in Canada and Australia sharing similar goals, the respective governments have collaborated with the Home Office to create an optional international reporting template. They have designed this tool to help organisations meet overlapping reporting obligations across the UK, Australia and Canada, reducing administrative complexity and supporting robust supply chain transparency.
Key features of the new template
The template organises disclosure requirements into seven key themes:
- organisational structure;
- policies;
- risk management;
- due diligence;
- remediation;
- employee training; and
- assessment of effectiveness.
This structure encourages organisations to provide a comprehensive overview of their approach to identifying and addressing risks related to modern slavery and child labour.
The template guides organisations towards a proportionate, risk-based approach, with a notable emphasis on material risks to people, rather than focusing solely on organisational or reputational risks. This approach aligns with evolving expectations for meaningful, people-centred reporting and encourages organisations to prioritise areas where the risk of harm is greatest.
The template adopts a two-level reporting system. Level one covers the essential disclosures that generally satisfy the minimum requirements across all three jurisdictions. Level two invites organisations to provide enhanced disclosures, demonstrating leadership, progress and a commitment to continuous improvement in tackling modern slavery within their operations and supply chains.
Practical considerations for employers
While the template offers a streamlined reporting process, it remains essential for organisations to review and comply with the specific legislative requirements and official guidance in each country. This includes adhering to any administrative procedures and reporting deadlines unique to each jurisdiction. Updates to the template and accompanying guidance will be communicated through official channels in the UK, Australia and Canada.
A step forward in global compliance
The introduction of this international template marks a positive development for organisations operating across multiple jurisdictions. By simplifying the reporting process and encouraging best practice, it supports employers to demonstrate their commitment to eradicating modern slavery and related abuses from their global operations.
