Clause · Climate, ESG & Sustainability Reporting

Modern slavery and human rights supplier clause with audit rights

Supply contract clause requiring suppliers to identify and address modern slavery risks, cooperate with due diligence and audits, report incidents, remediate, and flow obligations down, supporting the buyer's Modern Slavery Act statement.

Kind
Clause. Wording to drop into a longer document.
Where it applies
Australia, United Kingdom (England and Wales)
AI use
Yellow AI can help in set ways. A lawyer checks specific points before use.
Law stated as at
17 October 2026
Status
Maintained. Checked against the cited sources on 17 October 2026.
Version
1
Source
Written for this library

When to use it

Use in supply, services and procurement contracts for buyers that report under the Modern Slavery Act 2018 (Cth) or have human rights commitments. Adapt for low-risk suppliers. Do not use as a substitute for supplier due diligence.

How AI may be used

AI may screen supplier questionnaires and audit reports for red flags, but its output is only a lead for human due diligence, and supplier data must stay within the contract's confidentiality terms.

AI may

  • Compare a supplier's proposed changes with this clause and list departures.
  • Screen completed questionnaires and audit summaries for listed red flags, citing the passage relied on.
  • Draft a remediation plan template from an incident report for the lawyer and procurement team.

AI must not

  • Must not rate a supplier as low risk or clear a supplier on AI output alone.
  • Must not receive worker personal information or grievance details in a tool not approved for that data.
  • Must not draft public statements about a supplier incident.

The lawyer checks

  • Audit and termination rights are proportionate and workable for the supplier's size and risk.
  • Remediation is prioritised over immediate termination where that better protects affected workers.
  • The clause supports, and is consistent with, the buyer's modern slavery statement.

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Official form

Open the official form. Always use the current version from the issuer.

Read the full text

More in Climate, ESG & Sustainability Reporting

All precedents for Climate, ESG & Sustainability Reporting · Tasks and AI use in this area