Just before the 10-year anniversary of the UK Modern Slavery Act 2015, refreshed statutory guidance was published setting out the government's expectations for the contents of modern slavery statements required under s54 of the Act.
A 2024 UK Select Committee Report following a review of the impact of the Modern Slavery Act 2015 noted that the legislation “has not kept up with the advances of other nations”. A recommendation was to publish standardised and accessible guidance on the preparation of modern slavery statements. The guidance can be accessed here: Transparency in Supply Chains.
What do you need to know?
The guidance introduces the concept of “Level 1” and “Level 2” disclosures, with reporting organisations encouraged to report on their modern slavery prevention activities to a Level 1 standard, and then progress to Level 2 and beyond. Even Level 1 disclosures in the updated guidance go beyond the level of detail recommended under the previous guidance.
Level 1 disclosures, which will be new for many organisations, include demonstrating how policies are linked to international standards (such as the UN Guiding Principles on Human Rights, and the OECD Due Diligence Guidance for Responsible Business Conduct), including a list of external organisations which the organisation has engaged with to map their supply chains, and including evidence of participation in peer-learning groups to develop best practice.
Risk assessment and continuous improvement are also key to compliant statements, with the guidance describing those who act to address identified risks, track progress, and continually improve as "responsible organisations". Where organisations deny or do not enquire about the presence of modern slavery in their supply chains, they are "highly unlikely to have conducted effective risk assessments and due diligence".
What do you need to do?
Modern slavery statements should be reviewed in line with the new guidance. Although not mandatory to follow the statutory guidance, doing so will be strong evidence of compliance unless it is possible to demonstrate achieving that some other way.
Modern slavery is an increasingly significant risk in global supply chains and procurement. Understanding and following the guidance where relevant and appropriate can strengthen existing compliance programmes and commercial standing as part of any tendering or procurement processes.
Through the guidance, the government intends to create a "race to the top" for modern slavery statement compliance. With further recommendations set out in the Select Committee's report, including mandating publication of modern slavery statements via the UK Modern Slavery Registry, the updated guidance is likely to be one step in many for the legislation to become “world-leading again”.
For advice on carrying out a modern slavery risk assessment, reviewing your modern statement or broader compliance, or any other risk mitigation queries please get in touch with your usual Burness Paull contact, or a member of our corporate crime team.
