---
title: "Modern slavery and human rights supplier clause with audit rights"
url: "https://ailawframework.com/precedents/climate-esg-and-sustainability-reporting/modern-slavery-supplier-clause"
type: "precedent"
site: "AI Law Framework"
id: "a48-modern-slavery-supplier-clause"
area_id: "A48"
kind: "clause"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# 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…

Canonical page: https://ailawframework.com/precedents/climate-esg-and-sustainability-reporting/modern-slavery-supplier-clause  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

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.

## Key facts

- Kind: Clause. Wording to drop into a longer document.
- Practice area: [Climate, ESG & Sustainability Reporting](https://ailawframework.com/precedents/climate-esg-and-sustainability-reporting.md)
- Jurisdictions: Australia, United Kingdom (England and Wales)
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 4 authorities it cites, for Australia and United Kingdom (England and Wales).

## 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.

## Authorities

- [Modern Slavery Act 2018 (Cth) s 5 (reporting entity: consolidated revenue of at least $100 million)](https://www.legislation.gov.au/C2018A00153/latest/text)
- [Modern Slavery Act 2018 (Cth) s 13 (statement to be given within 6 months after the reporting period)](https://www.legislation.gov.au/C2018A00153/latest/text)
- [Modern Slavery Act 2018 (Cth) s 16 (mandatory criteria for modern slavery statements)](https://www.legislation.gov.au/C2018A00153/latest/text)
- [Modern Slavery Act 2015 (UK) s 54 (transparency in supply chains)](https://www.legislation.gov.uk/ukpga/2015/30/section/54)

## Official form

[Official form](https://www.ag.gov.au/crime/modern-slavery/modern-slavery-act)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/climate-esg-and-sustainability-reporting/modern-slavery-supplier-clause and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*