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Modern Slavery Law.
Passed in 2015 by the Government the Modern Slavery Act is designed to prevent and prosecute any act of slavery, included within the act is a provision regarding the transparency of supply chains.
Forced Labour around the world is a big problem, with an estimated 20 million people being exploited in some way, including child labour and trafficking. In the UK it is estimated that over 10,000 people are working as slaves and world wide it is the second largest criminal industry with a estimate 150 billion dollars plus, in revenue.
Transparency in supply chains.
The objective is to highlight any slavery in your suppliers and makes companies accountable for any abuse, the objective being that British companies do not have any link to this type of criminal activity and to be able to prove to shareholders, staff and consumers that each company is taking a proactive step to ensure that is the case.
What are the steps a business must take?
If you have a turnover of £36 million and trade in the UK you are required to produce and display on your website a 'slavery and trafficking statement' the statement must set the steps the Business has taken to ensure that slavery does not happen in any part or its business or in any part of its supply chain, failure to do so may result in court action and an unlimited fine.
It is also expected that the statement is revisited to ensure that the monitoring is ongoing.
The Act applies to any foreign company or subsidiaries that conduct business in the UK, if you are a UK based company operating overseas the Act is unclear, but if in any doubt you should comply, if you do object with producing a statement you should seek legal advice.
What needs to be included in the statement?
On this point the Government has not been at its most helpful, the statement layout and content is up to the individual business, you can provide as much detail as you like, but you must show the steps you have taken in obtaining the evidence to show that the supply chain is slavery free.
Implementation.
The modern slavery act does highlight the problem and does give business a responsibly to be answerable, in practice a business can produce and display a statement to say that it does not take any step to check its supply chain and in so doing will fulfil its obligation.
An important point is that a business is not responsible for the supply chain; if it turns out they do undertake any form of slavery.
The point of the Act must be to increase awareness to modern slavery, and a moral responsibility for companies to do their best to fight exploitation.
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