Top 5 FAQs about the Modern Slavery Act 2015

1. What is the Modern Slavery Act 2015?

The Modern Slavery Act 2015 is a significant piece of legislation passed by the UK government to address modern slavery in all its forms. Modern slavery is a term used to describe the crimes of holding a person in a position of slavery, servitude, forced or compulsory labour, or human trafficking (facilitating a person's travel with the intention of exploiting them soon after).

The Modern Slavery Act 2015 consolidates existing offences relating to trafficking and slavery, increases penalties for these crimes, and provides protection and support for victims. A key feature of the Act is the requirement for certain businesses to produce an annual slavery and human trafficking statement.

2. Which businesses are required to comply with the Modern Slavery Act 2015?

Under Section 54 (Transparency in Supply Chains) of the Modern Slavery Act 2015, certain commercial organisations are required to publish an annual statement on their website, if all the criteria below apply:

• it is a ‘body corporate’ or a partnership, wherever incorporated or formed.

• it carries on a business, or part of a business, in the UK.

• it supplies goods or services; and

• it has an annual turnover of £36 million or more.

The turnover threshold includes the turnover of the company and its subsidiaries. The requirement applies to all sectors and industries. Organisations are responsible for determining whether the legislation applies to them.

3. What must be included in the Modern Slavery Statement?

The Modern Slavery Act recommends that organisations cover the following 6 areas in their statements:

1. Organisation structure and supply chains;

2. Policies in relation to slavery and human trafficking - to demonstrate this, organisations should have a robust anti-slavery policy;

3. Due diligence processes;

4. Risk assessment and management;

5. Key performance indicators to measure the effectiveness of steps being taken; and

6. Training on modern slavery and trafficking.

The statement must be published on the organisation’s website and added to the government registry.

4. What are the penalties for non-compliance?

While the Modern Slavery Act 2015 itself does not impose direct financial penalties for failing to produce a statement, non-compliance can lead to significant reputational damage and loss of consumer trust. The Secretary of State can seek an injunction through the High Court requiring the organisation to comply. Failure to comply with such an injunction can result in an unlimited fine.

5. How can businesses ensure compliance with the Modern Slavery Act 2015?

To ensure compliance with the Modern Slavery Act 2015, businesses should develop a robust strategy that includes policy development, risk assessment, due diligence, training, and continuous improvement. Key steps include:

• Implementing a comprehensive anti-slavery policy;

• Conducting risk assessments to identify and mitigate potential slavery risks in supply chains

• Performing due diligence on suppliers and partners;

• Training employees on modern slavery issues and the company's policies; and

• Regularly reviewing and updating policies and procedures to improve effectiveness.

As well as this, organisations required to publish a modern statement should ensure they do so and update their statement annually (see question 4 for more information on this).

Conclusion

The Modern Slavery Act 2015 is a vital tool in the fight against modern slavery and human trafficking. By understanding and addressing these five FAQs, businesses can take meaningful steps to comply with the Act, protect vulnerable individuals and promote ethical practices within their operations and supply chains. Ensuring compliance not only fulfills legal obligations but also demonstrates a commitment to human rights and social responsibility.

An anti-slavery policy can enhance your brand's reputation by showing you act ethically and responsibly as a business. It can also help mitigate risks associated with negative publicity and potential legal issues related to breaches of modern slavery laws. Docue’s anti-slavery policy template includes model content designed by lawyers to help you draft the policy yourself and tailor it to your needs. And don’t worry if you get stuck along the way, the template includes guidance notes drafted by lawyers to help you through the process.

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