Australia's Modern Slavery Changes: What They Mean If You Hire Offshore

Australia plans to make it a crime for large companies to fail to prevent modern slavery in their supply chains. If you use offshore staff, your provider is part of that supply chain, so you need to know how they treat the people they employ.

In July 2026 the federal government announced a new "failure to prevent" offence for companies with more than $100 million in annual revenue. The details are still being worked out. But the direction is clear, and it will reach businesses of every size through their customers and suppliers.

What's changing

Right now the Modern Slavery Act 2018 asks companies with over $100 million in revenue to publish a yearly statement. There is no penalty if they don't.

That is set to change. The government has proposed:

• A criminal offence for large companies that fail to prevent modern slavery in their supply chains
• A defence for companies that can show they took reasonable steps to prevent it
• Civil penalties for companies that don't meet their reporting duties

Other ideas are also on the table: penalties for false or misleading statements, stronger powers for the regulator, mandatory due diligence, and a way to flag high-risk industries.

As of October 2026, no bill has been released. The government has said it will consult on the detail first.

Why it's happening now

The current law has been criticised for years because it has no teeth. Companies could ignore it with no consequence.

Trade pressure has added urgency. In July 2026 the United States threatened tariffs on Australian imports over forced labour concerns. A tougher law is part of the response.

Does this apply to my business?

If your revenue is under $100 million, you won't have to report and the new offence won't apply to you directly. That doesn't mean you can ignore it.

Here's how it reaches smaller businesses:

• Your customers. If you supply a large company, they will need to show they took reasonable steps. Expect supplier questionnaires and new contract clauses asking how your team is employed.
• The Criminal Code. Forced labour, debt bondage and deceptive recruiting are already crimes in Australia, whatever the size of the business. They can apply to conduct overseas.
• Your reputation. If someone in your offshore team is mistreated, it's your brand in the story, not your provider's.

Where the risks sit in offshore staffing

Most offshore team members in the Philippines are treated well. But the industry has known weak spots, and they're the ones a regulator or a large customer will ask about.

Why every offshore provider needs a modern slavery policy

A policy is the simplest proof that a provider has thought about these risks. Most offshore staffing companies are too small to be required to have one, so many don't.

A good policy should cover:

• Who pays recruitment fees (it should always be the employer, never the candidate)
• What staff are told about their pay, hours and role before they start
• How pay, deductions and hours are recorded
• That staff keep their own documents and can resign freely
• How staff can raise concerns safely
• How the provider checks its own suppliers

If your provider can't show you one, ask why.

"If you can't see how your offshore team is hired, paid and treated, you can't call it ethical. The new rules will make clients ask that question. We'd rather they ask it now."

— Julius Schoenfeld, Co-founder, Team Up Now

How Team Up Now handles it

We are an Employer of Record. Our Philippine entity, Team Up Now OPC, directly employs every team member we place. They get a proper contract, government contributions, HMO cover and 13th month pay.

We've published our Modern Slavery Policy and Statement, even though the law doesn't require it. The short version:

• The client pays our recruitment fee. Candidates pay nothing.
• Every team member gets a written contract before they start.
• Pay, hours and deductions are recorded and shown on every payslip.
• Overtime and night differential are paid.
• Staff keep their own documents and can resign freely.
• Anyone can raise a concern, anonymously if they want.

For clients who need it for due diligence, we also have a one-page supplier pack. It's also part of how we approach Fair Work compliance offshore.

What to do next

• Ask your offshore provider for their modern slavery policy
• Check who is the legal employer of your offshore staff
• If you supply a large company, get ready for supplier questions now
• Keep an eye on the consultation, as the final rules may change

Frequently asked questions

What is the new modern slavery offence in Australia?

It's a proposed "failure to prevent" offence announced in July 2026. It would make companies with more than $100 million in annual revenue criminally liable if modern slavery occurs in their supply chains, unless they can show they took reasonable steps to prevent it.

When will the modern slavery changes start?

There's no start date yet. As of October 2026 the government has announced the offence but has not released a bill. It has said it will consult on the details first.

Does the Modern Slavery Act apply to small businesses?

The reporting rules and the proposed offence only apply to entities with more than $100 million in revenue. But smaller businesses can still be asked about modern slavery by larger customers, and the Criminal Code offences such as forced labour and debt bondage apply to everyone.

Is offshore staffing in the Philippines a modern slavery risk?

It can be if staff pay recruitment fees, are paid late or short, work excessive hours, or can't leave freely. Using a registered employer with proper contracts, payslips and a way to raise concerns reduces that risk.

Does Team Up Now charge candidates recruitment fees?

No. Our recruitment fee is paid by the client. Candidates never pay a fee, deposit or cost to get a job with us.