Modern Slavery Act 2015: Home Office Updates Statutory Guidance

On 24 March, the Home Office published updated guidance (the Guidance) for companies producing modern slavery statements as required by the Modern Slavery Act 2015 (MSA). 

Its publication follows increasing criticism of the MSA as failing to hold companies to account and achieve meaningful outcomes. In October 2024, a House of Lords Select Committee published a report suggesting reforms for the MSA in line with international best practice (see our previous blog post here). The Government responded in December 2024, reaffirming its commitment to tackling the broader issue of modern slavery and noting that it was in the process of updating the section 54 statutory guidance.

Section 54 of the MSA (section 54) imposes a duty on commercial organisations with a turnover of £36 million or above, 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 updated Guidance fills much of the gap in respect of the content the Home Office expects to see in a statement, and we have summarised the main changes below.

Key updates

The core message of the Guidance is increased transparency on steps an organisation takes to prevent modern slavery, and the need to go beyond reporting and take more action. It builds on the previous iteration, providing much more detail and demonstrating “best practice” for modern slavery reporting. 

The Guidance aligns closely with the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidelines for Responsible Business Conduct, expressly linking its content to provisions of these frameworks and demonstrating how the UK regime fits within the wider international context.

The Guidance is prescriptive, providing lists of recommended disclosures to enhance transparency. It also outlines practical steps which organisations can take to tackle modern slavery within their own operations and supply chains. The Guidance expands on suggestions which existed under the previous guidance, but new provisions have been introduced, such as encouraging disclosure of modern slavery incidents found.

Change in structure and priorities 

The focus of the Guidance has shifted towards improved disclosure and encouraging higher quality reporting, reflected in its new structure. The disclosure provisions are set out in individual tables for each subsection and in a way which allows organisations to use them as data points against which to make disclosures. This provides more direction than the previous guidance and will allow stakeholders to identify more easily where organisations are meeting, or falling short of, their expectations on tackling modern slavery.

Interaction between disclosure and action

More attention is given to action that companies should be taking, with organisations being encouraged to comply with the “spirit of section 54” and not just the letter. Each section includes suggestions of “key actions” to facilitate meeting the applicable disclosures, reflecting the intention for the Guidance to improve the practices that underpin the reporting. 

There is also more detail given in certain areas – for example, there is a comprehensive five-step process for risk assessment and management to help organisations identify and address risks. Additionally, links to supplementary guidance are included throughout the document to support organisations in taking action. 

New definition of “supply chain”

The Guidance provides a detailed definition of a company’s “supply chain” for the first time, having previously been given “its everyday meaning”. The new definition explains what a supply chain is, its scope, and the fact that it “includes physical assets and labour within all tiers of suppliers who contribute to a product or service”. This is a welcome clarification that will improve both companies’ reporting and stakeholders’ understanding.

Increased expectations

The disclosure tables contain tiered expectations. This recognises that different organisations will have varying levels of sophistication, while also stating that organisations are expected to demonstrate continued improvement. A number of the higher tier disclosures may require additional diligence and/or setting up new systems in order to comply. Examples include:

• providing a detailed map of the organisation’s structure and relationships to understand all tiers of its supply chain, all the way down to indirect suppliers and raw materials;
• outlining high level information about suppliers’ policies and practices and how these have been assessed; and
• a detailed process to develop KPIs, which includes carrying out in-depth analysis of an organisation’s actions and impacts, considering what progress it wants to make and how to set up a measurement system.

The Guidance also encourages increased and broad collaboration – including with NGOs and trade unions, not only to increase transparency but also as a preventative measure and to take effective action.

Next steps

In the coming months, the relevance of the Guidance to an individual organisation will depend on when it publishes its modern slavery statement. Some may wish to comply this year to the extent they can, but we will likely see more significant changes in the next reporting cycle. 

The processes necessary to meet some of the higher tier expectations, such as carrying out in-depth analysis of an organisation’s actions and impacts, may echo processes needed to meet other reporting obligations. For example, some of those required under the EU’s Corporate Sustainability Reporting Directive. Where this is the case, companies may be able to combine some of their approaches. 

By next year, organisations will have had time to review their current practices and consider aligning with the changing expectations. With a significant gap before then, there is likely to be heightened scrutiny as to which organisations will manage to step up and potentially a spotlight on those which don’t.