The UK Government has now published its response to the House of Lords Modern Slavery Act 2015 Committee report. We take a look at the supply chain recommendations.
Next year will mark ten years since the Modern Slavery Act 2015 (MSA) was passed through parliament.
The House of Lords Modern Slavery Act 2015 Committee recently published a report indicating that the UK has fallen behind other nations in its efforts to combat modern slavery (although those UK companies which operate globally may be subject to higher standards imposed elsewhere in any event).
We previously took a look at the recommendations of the Committee. The article can be accessed here if you missed it.
The Government has now reviewed the Committee report and outlined its plans in a number of areas. We set out the supply chain aspects below:
Requirement to publish modern slavery statement on registry dashboard
The Committee recommended that the Government make the publication of MSA statements on its modern slavery registry mandatory. It is hoped that this will improve accountability. The Committee also recommended that a dashboard is created to publish the MSA statements online.
The Government has responded saying that it is planning to build on certain changes it announced previously to its modern slavery registry back in April 2024, and to introduce further improvements. It is currently developing a public facing dashboard to provide more information on modern slavery compliance and to increase transparency.
New guidance for section 54 compliance
The Committee recommended that the Government publish guidance organisations to follow, with a view to increasing their awareness.
The Government has said that it is working with businesses, academia and civil society to update the current section 54 statutory guidance. This currently provides insight into which organisations are required to publish a statement, what the statement needs to include and how it needs to be published.
Mandatory reporting for public bodies
The Committee recommended that section 54 reporting should also be extended to cover all public sector bodies, under a similar financial threshold to that used for businesses. Public bodies have a duty to ensure that exploitation is not occurring in their supply chains.
Although public sector bodies can publish statements voluntarily, the Government aims to review the scope and nature of the section 54 legislation in order to address the issues of forced labour and lack of transparency in global supply chains. No timeframe has been given for this action point.
Supply chain due diligence and enhanced reporting
The Committee recommended that supply chain due diligence be made a legal requirement for businesses to carry out, with the possibility of extending this to small and medium businesses. They recognised that the previous government had drafted legislation about this and that the draft laws could do with strengthening. New requirements could also see the introduction of a central register to record organisations’ statements about what they’re doing to tackle modern slavery in their supply chain.
The Government responded to the above by citing that the UK was signatory to the UN Guiding Principles on Business and Human Rights (UNGPs) as well as the Organisation for Economic Co-operation and Development’s Guidelines on Multinational Enterprises. The implementation of the UNGPs is currently being assessed and it is hoped that this will inform the Government’s approach to human rights abuses both at home and globally. The Government is expected to consult with stakeholders on private and public sector compliance and is looking at ways to combat modern slavery by legislative and non-legislative measures.
Import bans on forced labour products plus trade negotiations
The Committee recommended introducing import laws to ban goods coming into the UK that have been produced by forced labour, this to also be a part of trade negotiations.
The Government has not confirmed how it will do this and is lagging behind the EU which has just brought in a regulation prohibiting products made with forced labour from entering the EU. The UK Government says it will continue to monitor the effectiveness of the UK’s existing measures. It will also continue to work with businesses and international partners to strengthen workers’ rights and improve global labour standards.
Proportionate sanctions for non-compliance
The Committee recommended introducing sanctions for organisations that do not comply with supply chain requirements. There are currently no sanctions for non-compliance. It also called for the Government to clarify who will be responsible for the enforcement of sanctions.
This is under review and the Government is considering measures such as the Home Office’s power to make injunctions. No current framework for enforcement exists and it remains to be seen what the Government comes up with as a solution and which departments will be involved.
Timing
The Government has not given any specific timeframes for delivering on the above steps, but we will continue to monitor how this area of law develops. In the meantime, if you have any questions arising from this article or about your company’s compliance with the MSA as it currently stands, please contact [email protected]
