Modern Slavery Act 2015

Forced Labor

Human Trafficking

Modern Slavery

Summary Table

Obligations

Reporting
Due Diligence

Normative scope

Human Rights
Environment
Broad ranging

Value chain scope

Own operations
Subsidiaries
Direct Suppliers
Indirect Suppliers

Company scope

Large Companies
SMEs
All sectors

Administrative enforcement

Monitoring
Administrative Sanctions

Judicial enforcement

Civil Liability
Facilitating Access to Justice

Obligations

Reporting
Under section 54 of the MSA, a commercial organisation that supplies goods and services, and has a total turnover of more than £36 million must prepare a slavery and human trafficking statement for each financial year of the organisation.
A slavery and human trafficking statement for a financial year is:
(a) a statement of the steps the organisation has taken during to ensure that slavery and human trafficking is not taking place in itsown operations and in its supply chains, or
(b) a statement that no steps were taken.
The statement may include
(a) the organisation’s structure, its business and its supply chains;
(b) its policies in relation to slavery and human trafficking;
(c) its due diligence processes in relation to slavery and human trafficking in its business and supply chains;
(d) the parts of its business and supply chains where there is a risk of slavery and human trafficking taking place, and the steps it has taken to assess and manage that risk;
(e) its effectiveness in ensuring that slavery and human trafficking is not taking place in its business or supply chains, measured against such performance indicators as it considers appropriate;
(f) the training about slavery and human trafficking available to its staff.
The statement has to be approved by the board of director or equivalent management body, and signed by a director or equivalent.
The statement needs to be published on the organisation’s website under a prominently shown link or be send to anyone who asks in writing within 30 days should the organisation not have a website.
Due Diligence

Normative scope

Human Rights
Environment
Broad ranging
- Reporting is only required for slavery and human trafficking

Value chain scope

Own operations
Subsidiaries
Subsidiaries are only covered if they form part of the business or supply chain of the commercial organisation.
Direct Suppliers
Indirect Suppliers
- The slavery and human trafficking statement should cover the steps taken to ensure that slavery and human trafficking is not taking place in any part of the business and in any part of its supply chain.
- However, companies do not have to explicitly clarify how far down the supply chain they have considered. This was criticized in an independent review of the MSA which recommends that the Act should be amended to clarify that the entire supply chain should be covered. Any company not doing so should have to explain why.
- Moreover, it should be noted that it is also possible to state that no steps were taken.

Company scope

Large Companies
- The MSA applies to commercial organisations that
  Are corporations or partnerships wherever they are incorporated or formed,
  Carry on a business, or part of a business, in the UK,
  Supply goods or services, and
  Have an annual turnover of £36 million or more. This includes turnover from any subsidiary undertaking, even if they operate wholly outside the UK.
SMEs
All sectors

Administrative enforcement

Monitoring
- Since 2021, Modern slavery statements can voluntarily be published on the Government's MSA registry.
Administrative Sanctions
- There are no penalties, financial or otherwise, for non-compliance.
- The Secretary of State can bring civil proceedings for an injunction (a court order to comply), or in Scotland, for specific performance of a statutory duty. Injunctions can be enforced by the courts through fines.

Judicial enforcement

Civil Liability
The MSA does not create a new cause of action in civil liability.
Facilitating Access to Justice

General Information

The Modern Slavery Act (“MSA”) was passed in March 2015. Section 54 of the Act requires companies to report on steps taken against slavery and human trafficking in the supply chain. It does not require companies to undertake due diligence.
There are no sanctions for non-compliance with the reporting requirements.
The Business Human Rights Resource Centre conducted research that showed that only 40% of eligible companies produce a Modern Slavery report and those who do produce statements, only do so inadequately.
According to the Business, Energy and Industrial Strategy department, the MSA: “… has not kept pace with changes in business supply chains… it is out of date, has no teeth, and we do not accept that business should be excused from doing basic due diligence to guarantee that their supply chains are fully transparent and free from forced labour and slavery."

Upcoming Amendments and Official Reviews

In 2019, there was an independent review of the MSA:
- The review referenced that 40% of eligible businesses do not publish a statement at all and that no injunction to enforce the Act had been sought by the Secretary of State. The Guardian reported that, for 2022, only 29% of eligible businesses submitted a statement to the official registry. Submission to the registry is voluntary but strongly encouraged.
- The review recommended that:
  - The Government should create an internal list of all the companies that have to comply with section 54.
  - The reporting requirements should be strengthened. It should not be permitted to publish a statement that no steps have been taken and the six areas of reporting should become mandatory.
  - There should be a central repository for statements. This has been implemented since then.
  - There should be guidance available clarifying that the statement should also cover future steps. The guidance should be overseen by the Anti-Slavery Commissioner.
  - The Companies Act 2006 should be amended to require companies to refer to their Modern Slavery Statements in their annual reports.
  - Businesses should be required to name and designate a personally accountable board member
  - The Independent Anti-Slavery Commissioner should monitor compliance. Stronger sanctions for non-compliance should be introduced and the Government should consider creating an enforcement body.
  - The Government should extend the Modern Slavery Act to include the public sector and companies not complying with section 54 should not be eligible for public contracts.
  - The failure to fulfil the reporting requirements or to act when instances of slavery are found should be an offence under the Company Directors Disqualification Act 1986.
In response to the review, the UK Government held a public consultation. In 2020, it stated that it would make the following amendments if time allows:
- Mandate the areas that the modern slavery statements must cover and publish best practice guidance for reporting in these areas.
- Require organisations to publish their statements on a central registry. While a central registry has been introduced since then, publication on it remains voluntary.
- Introduce a single reporting deadline falling on September 30 – 6 months after the end of the fiscal year on March 31.
- Require that the date of the board and director sign-off is stated and that group statements clarify which entities are covered.
- Extend the Modern Slavery Act to public bodies with a budget of £36 million or more. The UK Government would also publish guidance for public bodies to help them understand whether they fall within this group and allow for group statements.
- The UK Government also said it would consider enforcement in line with the Single Enforcement Body.
In January 2021, the UK Government announced that financial penalties would be introduced for organisations failing to publish annual modern slavery statements if parliamentary time allows.
In June 2021, a Modern Slavery Amendment Bill was tabled in the House of Lords. It only made it to the first reading and will make no further process as the 2021-2022 Parliamentary session has since then elapsed. It would have:
- Required the appointment of a person responsible for the slavery and human trafficking statement.
- Introduced a criminal offence for false or incomplete slavery and human trafficking statements for the person responsible if the person knows about it or is reckless as to whether it is
- Introduced a criminal offence for commercial organisations for continuing to source from suppliers or sub-suppliers that have failed to demonstrate minimum standards of transparency and have been issued a warning by the Anti-Slavery Commissioner.
In May 2022, the UK Government announced in the Queen’s speech that it would introduce new legislation to strengthen the transparency provisions in the MSA. In very generic terms, the Government repeated the above-mentioned commitments of 2020 and 2021 except for the requirement to publish the date of sign-off.