Report on the Modern Slavery Act 2015: Calls to make the UK, once again, a world leader in the fight against modern slavery

A House of Lords Select Committee, tasked with considering the Modern Slavery Act 2015 (MSA), recently published a report setting out suggestions for reforming the MSA in line with international best practice to “make the UK, once again, a world-leader in the fight against modern slavery and to make a profound difference to many lives”. The report was developed following the receipt of written and oral evidence from experts, and a roundtable session with modern slavery survivors. Businesses should take note of the recommendations, given their potential to influence the Government’s thinking in this area.

Key recommendations which may impact businesses 

Currently, section 54 of the MSA imposes a duty on commercial organisations with a turnover of £36 million or above and which carry out business in the UK to produce a statement detailing actions taken to ensure that their business and supply chains are free of modern slavery and human trafficking. However, the MSA does not mandate what such statements should contain, and there is little provision for enforcement. The report recommends the following areas for reform.

A move to mandatory publication of MSA statements on the Government’s registry and more comprehensive content requirements

The report recommends that the Government makes the publication of MSA statements on its modern slavery statement registry mandatory and that it sets out mandated topics for each statement – currently companies can voluntarily upload their statements and there are six recommended areas to cover. It calls for additional guidance to be published to support companies in complying with section 54 of the MSA. 

The report also suggests updating the modern slavery statement registry to include a summary dashboard with information about the number of statements published and the relevant sectors and organisations in-scope, and providing examples of “good and bad” reporting by companies. If enacted, this ‘name and shame’ approach could have important reputational consequences for in-scope companies.

Proportionate sanctions for failure to comply with MSA reporting requirements

Currently, the only sanction for failing to produce a MSA statement is an injunction from the Secretary of State requiring compliance. This power has not been used to date. The Committee recommends strengthening the enforcement regime by introducing “proportionate” sanctions for organisations that do not comply with reporting requirements. The report considers the possibility of sanctioning directors but does not reach a definitive conclusion on the mechanisms for enforcement, instead focusing on proportionality as the driving factor. 

Introduction of mandatory due diligence requirements compatible with international regimes

The report calls on the Government to introduce legislation requiring in-scope companies to undertake modern slavery due diligence in their supply chains and to take reasonable steps to address problems that are uncovered. It recommends that businesses are consulted on potential changes, giving due consideration to SMEs’ ability to meet any new requirements. The Committee also calls on the Government to make UK due diligence law more aligned with international standards to make compliance easier for companies, and notes that the EU’s Corporate Sustainability Due Diligence Directive raises the question as to whether similar measures should be introduced in the UK. 

Import laws banning goods produced by forced labour

In addition to the above, the Government should consider introducing import laws which ban goods brought into the UK if they are produced by certain companies known to use forced labour. However, the report suggests that these import laws should not be targeted at particular countries. 

Possible next steps 

Generally, the Government would be expected to respond to the report within two months. That said, the current direction of travel is unclear – there was no substantive discussion of the issue at the Labour conference in September nor was the MSA mentioned in Labour’s manifesto. 

Whilst the previous Government outlined proposals to reform the MSA in 2022, they were not adopted. The report notes that those proposals would constitute a “positive improvement” but encourages the Government to go further, for example with the introduction of mandatory due diligence requirements. Although the recommendations set out in the report are not mandatory for the Government to implement, they may nonetheless be influential in raising awareness and shaping any future legislative reform.