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Melanie Carter
Partner and Head of Public & Regulatory
The government has announced new measures to expand and clarify the requirements of the Modern Slavery Act 2015, with which large businesses, charities, social enterprises and now the public sector will need to comply once brought into force.
Partner and Head of Public & Regulatory
Associate
The response to the transparency in supply chains consultation outlines the intended reforms including the mandatory content of modern slavery statements, a new government-run reporting service, a single reporting deadline, civil penalties, and the extension of reporting to the public sector.
Existing requirements
When the Act came into force, the UK became the first country to require organisations with a turnover of £36m or more to produce a modern slavery statement. Government guidance confirms that charities and social enterprises over this threshold may be within scope.
The Act currently provides a non-mandatory list of topics such as due diligence processes and risk management) which it is suggested should be covered in the statements. The absence of obligations for public bodies and the lack of sanctions for non-reporting were noted by many. This led to the transparency in supply chains consultation and the UK government publishing the world’s first Government Modern Slavery Statement in 2020 as the first step towards expanding the scope of the Act.
New requirements
The response confirms the government’s intention to introduce the following reforms (though the measures will need to be implemented through legislation, so will require Parliamentary time).
The government’s proposals are likely to be seen as a positive step for encouraging compliance with the Act and taking further action to tackle all forms of modern slavery. All organisations with a turnover or budget of £36m should be aware of the proposed reforms and look out for the legislation implementing them to ensure compliance.
Please contact Melanie Carter or Alistair Williams for more details.
This information is necessarily of a general nature and doesn’t constitute legal advice. This is not a substitute for formal legal advice, given in the context of full information under an engagement with Bates Wells.
All content on this page is correct as of September 25, 2020.