Modern Slavery Act

UK legislation requiring organisations with annual turnover over £36m to publish statements on steps taken to prevent modern slavery in their operations and supply chains.

What it requires

The Modern Slavery Act 2015 mandates that commercial organisations with an annual turnover of £36 million or more must publish annual slavery and human trafficking statements. These statements must outline what steps the organisation has taken during the financial year to ensure modern slavery is not occurring in any part of its business or supply chains.

Public sector obligations

While the statutory reporting requirement applies to private companies above the turnover threshold, public bodies are increasingly incorporating modern slavery considerations into their procurement processes. Many contracting authorities now include modern slavery clauses in tender documents and require suppliers to demonstrate compliance with the Act.

The Act defines modern slavery as slavery, servitude, forced or compulsory labour, and human trafficking. Organisations must address these risks across their entire supply chain, not just direct suppliers.

Procurement implications

Public sector buyers should evaluate suppliers' modern slavery statements during procurement exercises. Key areas to assess include:

• Due diligence processes for supply chain partners
• Risk assessment methodologies
• Training programmes for staff
• Performance indicators and monitoring systems
• Remediation procedures when issues are identified

Enforcement and compliance

The government maintains a central registry of modern slavery statements. While enforcement has been relatively light, non-compliance can result in court orders compelling organisations to produce statements. For public procurement, failure to address modern slavery risks adequately may constitute grounds for exclusion under the Public Contracts Regulations 2015.