Vertical Markets

Modern Slavery consultation

by Mark Rowe

In the Coalition Government’s proposed Modern Slavery Bill, the Home Office has what it claims is a world-leading provision for transparency in supply chains. All businesses over a certain size will have to disclose what steps they have taken to ensure their business and supply chains are slavery free. But what size business will have to do it, and how can they show they’ve done all they ought to, against slavery in their supply chain? What should the Government’s guidance on the issue say, to give businesses a steer? These are the questions in a Home Office consultation.

The Government describes its proposals as ambitious, to cover major businesses from all sectors, listed and private. Home Secretary Theresa May said: “This will ensure that large businesses cannot turn a blind eye to modern slavery simply because of their corporate status or domicile. We have consciously taken an approach that will encourage business to take real action whilst avoiding unnecessary burdens or an inflexible system that works only for some businesses.”

In the foreword to the consultation she added: “Government and business need to work together to stamp out modern slavery. The Government must generate an environment where modern slavery cannot succeed, and must work collaboratively with international partners to tackle this evil. Equally, businesses must be vigilant, to make sure that those they do business with are not exploiting others.”

As the consultation sets out, businesses above a set level of turnover will have to publish an annual ‘slavery and human trafficking statement’ which discloses what steps they have taken so that slavery and human trafficking is not taking place in any of its supply chains or business; or that they have taken no such steps. As the document puts it, the Home Office wants its guidance to be ‘genuinely helpful’.

Some businesses will have to go into more detail than others, the document suggests: “For example, a business which provides services and is entirely based in the UK may need to disclose much less information than a retailer with suppliers all over the world.” While the need to report may well be for larger companies, those larger businesses ‘will help to push responsible practices down through the supply chain, including to smaller businesses not directly covered by this legislation, if they act as suppliers to larger businesses that need to comply’, as the consultation points out. And those responsible for businesses, such as company boards and directors will have to sign any
slavery and trafficking statement: “This will ensure that those at the top level take this issue seriously and understand the implications of taking little or no action.”

But what turnover counts as ‘large’? In the California
Transparency in Supply Chains Act 2010, the threshold is $100m. In the Companies Act, £36m and above counts as a large company – which would make 12,259 companies having to comply. That compares with 724 billion-pound and above companies.

The three-month consultation runs to May 7. For the 31-page consultation document visit – https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/403575/2015-02-12_TISC_Consultation_FINAL.pdf

The Government says that it intends to make the law before May’s general election.

About the Bill

The Government introduced a Modern Slavery Bill to Parliament in June 2014. The Bill will consolidate slavery and human trafficking offences into one Act of Parliament. The Home Office Minister for Modern Slavery and Organised Crime Karen Bradley, introducing the consultation, said: “I am determined to ensure that UK supply chains are not being infiltrated by modern slavery. Supply chains are often extremely long, complex and cross international borders. Even services provided in the UK can involve outsourced labour from across the globe.”

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