What is the UK Modern Slavery Act 2015?
The UK Modern Slavery Act 2015 is a significant piece of legislation designed to combat modern slavery and human trafficking in the UK. Enacted in March 2015, the Act consolidates previous offenses related to trafficking and slavery and introduces new measures to protect and support victims, including the requirement for businesses to produce a yearly “Transparency in Supply Chains” statement.
The Act covers various forms of modern slavery, including servitude, forced or compulsory labor, and human trafficking. It strengthens the legal framework by giving law enforcement the tools they need to tackle these crimes, ensures perpetrators can receive suitably severe penalties, and enhances support and protection for victims. It also established the Independent Anti-Slavery Commissioner to encourage good practice in the prevention, detection, investigation, and prosecution of slavery and human trafficking offenses.
Why was the UK Modern Slavery Act 2015 Created?
The UK Modern Slavery Act 2015 was introduced to address growing concerns about modern slavery and human trafficking both within the UK and globally. This comprehensive legislation consolidated previous offenses related to trafficking and slavery from the Sexual Offenses Act 2003 and the Asylum and Immigration (Treatment of Claimants, etc.) Act 2004 into a single law.
Its creation was propelled by the need to streamline the legal process against perpetrators, enhance protection for victims, and improve transparency in business operations. By requiring businesses to disclose actions taken to eradicate slavery from their operations and supply chains, the Act aims to set a global standard for preventing exploitation, reflecting the UK’s dedication to leading in the fight against modern slavery while ensuring support and justice for victims.
Who Has to Comply with the UK Modern Slavery Act 2015?
Any business with an annual turnover of £36 million or more that conducts business or provides services in the UK is required to comply. Both UK-based companies and overseas companies with substantial business operations in the UK must adhere to the Act’s requirements. This includes corporations, partnerships, and some public sector organizations.
While government and public bodies are not required to submit the Transparency in Supply Chains statement, they are encouraged to consider the principles of the Act in their procurement processes, and are expected to take steps to ensure that their supply chains are free from forced labor.
How Will the UK Modern Slavery Act 2015 Affect Businesses?
By requiring an annual Transparency in Supply Chains statement, the Act ensures lucrative businesses are taking necessary actions to prevent modern slavery in their supply chains. Companies need to conduct due diligence on their suppliers and subcontractors to ensure that there are no instances of modern slavery.
Also consider public disclosure of modern slavery practices can influence consumer and investor decisions, potentially impacting a company’s market position, reputation, and financial stability.
Once businesses reach the $36 million annual turnover threshold, they may need to change their operational strategies to ensure compliance. This could involve altering supplier relationships, investing in more robust compliance systems, or training staff to recognize and respond to modern slavery risks. Therefore, it’s important to structure your business in accordance with the UK Modern Slavery Act and other critical regulations, even if you have not reached the $36 million threshold, to ensure you do not reach a hurdle that could block your progress and growth.
What Are the Penalties for Noncompliance with the UK Modern Slavery Act 2015?
Noncompliance with the UK Modern Slavery Act does not carry direct financial penalties. However, the Secretary of State has the power to enforce compliance through the High Court, which can issue an injunction compelling a company to comply. If a business fails to comply with the injunction, it can be found in contempt of court, which may result in unlimited fines.
Companies failing to meet the transparency requirements risk negative publicity, investor trust, and/or financial losses. Additionally, businesses might face increased scrutiny from consumers, investors, and partners who are attentive to corporate responsibility and ethical standards. Thus, compliance is crucial past legal reasons.
How Do You Comply with the UK Modern Slavery Act 2015?
To comply with the UK Modern Slavery Act 2015, particularly with the transparency provisions that require the publication of a modern slavery statement, you should follow these steps:
- Evaluate the areas within your business and supply chain that are at risk of modern slavery practices. This assessment should consider the nature of the work, the geographic regions involved, and the suppliers’ practices.
- Create policies that articulate your commitment to ethical practices, including the prevention of modern slavery. These policies should clearly outline the responsibilities of staff and suppliers.
- Implement due diligence processes to assess and manage the risks identified. This includes vetting new suppliers, conducting audits, and ongoing monitoring of existing suppliers for compliance.
- Establish a system where employees and external stakeholders can report suspected slavery or human trafficking.
- Prepare an annual modern slavery statement that outlines the steps your organization has taken to identify and combat slavery and human trafficking in its operations and supply chains. The statement must be approved by the board and signed by a director (or equivalent). Publish the statement on your company’s website with a prominent link placed on the homepage. If your company does not have a website, the statement must be provided within 30 days upon request.
How can Craft help?
Craft’s supplier risk management solutions are designed to streamline compliance and enhance reporting. With our platform:
- Identify risky suppliers with in-depth company profiles and easily scalable due diligence
- Continuously monitor your supplier network for changes and potential violations
- Document your efforts for proof of compliance
- Collaborate and share information across teams for faster risk mitigation
Related Regulations
UK Bribery Act 2010
EU Supply Chain Due Diligence Directive
California Transparency in Supply Chains Act
Australian Modern Slavery Act 2018
Conclusion
The UK Modern Slavery Act 2015 represents a crucial step toward eradicating modern slavery and human trafficking within global supply chains. By understanding and adhering to the Act’s requirements, businesses can not only ensure compliance but also demonstrate their commitment to ethical practices and human rights. Leveraging tools like Craft’s solutions can simplify the compliance process and help maintain transparency and accountability in your operations.
For further guidance and support on regulatory compliance, explore our compliance hub or contact us directly.