Retailers need to check obligations under New South Wales government scheme

A retailer must comply if they enter into agreements with suppliers for TCF products that are manufactured, altered or worked on in Australia, and when those products are offered for sale to customers in NSW.

It does not matter if the retail business is located outside of New South Wales, they still must comply if they meet the ECERS retailers definition and sell their products in New South Wales. Further, the ECERS applies to a retailer regardless of whether or not outworkers are in the local supply chain.

A supplier must comply if they supply TCF products to retailers that are manufactured, altered or worked on in Australia, and if those products will be sold to customers in NSW.

Under the ECERS, this includes businesses that:

• supply manufactured clothing products
• manufacture clothing products
• arrange the manufacture of clothing products
• arrange the supply of manufactured clothing products
• carry out any combination of these activities.

Similar to the retailer business eligibility, the supplier may be located outside of New South Wales. It does not matter where the business is located – if they fit the definition they are captured in the ECERS.

The New South Wales Government is implementing the relaunch of the ECERS in stages.

From 7 October 2026, retailers and suppliers covered by the ECERS must start maintaining Schedule 2 records for any new, extended or renewed supplier agreements entered into for TCF products made, altered or worked on in Australia and offered for retail sale in NSW.

From November 2026, retailers covered by the ECERS must register for an account on the ECERS Retailer Portal.

From February 2027, Schedule 1 reporting obligations recommence.

Business can visit the government’s ECERS website to learn how the ECERS works and what responsibilities a business may have.

The New South Wales government has created an ECERS In-Scope Tool to confirm whether your retail business is covered by the ECERS.

A business can also register with the ECERS to hear more and receive updates, guidance and important information about upcoming ECERS requirements and key implementation dates.

If a retail business is accredited under Ethical Clothing Australia’s Code of Practice, incorporating Homeworkers, then the business is exempt from complying with the ECERS.

This exemption recognises the fact that businesses that are complying with the Code of Practice have undertaken a third-party audit to demonstrate that they protecting the rights of workers in the local textile, clothing and footwear industry, including any outworkers. These audits ensure compliance with the relevant Australian workplace laws and ensure compliance throughout the entire supply chain.

If you want to find out about accreditation, visit here.

The ECERS took effect on 1 July 2005. However, it hasn’t been actively used in recent years. In 2024, a Joint Modern Slavery Committee Inquiry into the ECERS found that outworkers in the textile, clothing and footwear industry continue to be at significant risk of workplace exploitation and modern slavery. To address this risk and improve supply chain transparency, the Inquiry recommended the ECERS be relaunched. The NSW Government endorsed the Inquiry’s recommendation and tasked NSW IR with relaunching the ECERS.