National legislation
BHR laws to date generally take one of two forms, which mandate either reporting or due diligence. These laws require entities (usually of a certain size measured by revenue or number of employees) operating in a particular jurisdiction to take action as outlined in the chart below:
Type of legislation and requirements
(1) Reporting laws:
Require producing an annual modern slavery statement setting out:
- the risks of modern slavery in the entity’s operations,
- efforts the entity undertakes to address those risks, and
- how effectiveness of these efforts is measured.
- Statements must be signed by a senior official and publicly available.
Jurisdictions
In effect
- United Kingdom
- Australia
- New South Wales (Australia)
- California (US)
Under consideration
- Canada
- EU
- Germany
- Hong Kong
- Norway
- Switzerland
Penalties:
Penalties for non-compliance vary but there is a growing consensus that some type of sanction (e.g., a fine) is needed to ensure adherence.
(2) Due diligence laws:
Require certain entities to identify and prevent human rights risks that could occur within or in connection to their business operations.
Jurisdictions
In effect
- France
- Netherlands (entry into force suspended to give companies time to prepare for meeting requirements)
Under consideration
Penalties
Penalties for non-compliance vary by jurisdiction (e.g., French law permits courts to set a penalty and permits civil liability, whereas the Dutch law mandates fines).