What Is the UK Modern Slavery Act?
The UK Modern Slavery Act, which came into force in 2015, is a landmark piece of legislation that seeks to eradicate modern slavery from supply chains and businesses in the UK. It requires companies to take steps to prevent slavery and human trafficking in their operations and supply chains. The Act consolidates previous offenses relating to trafficking and slavery and sets a global precedent for legal frameworks in this domain. All companies that are either incorporated in the UK or carry on business in the UK and have an annual turnover of £36 million or more are required to comply with the Act's reporting requirements. This includes companies involved in manufacturing, retail, services, and other sectors. Additionally, the Act applies to companies that have a subsidiary or franchise in the UK, regardless of where the parent company is located. Companies that do not meet the turnover threshold may also voluntarily comply with the Act's reporting requirements to demonstrate their commitment to eradicating modern slavery from their operations and supply chains.
Qualifying companies must publish an annual slavery and human trafficking statement and conduct thorough supply chain due diligence.
One of the key requirements of the UK Modern Slavery Act is for companies with a turnover of over £36 million to publish an annual slavery and human trafficking statement on their website. This statement should outline the steps that the company has taken to ensure that slavery and human trafficking are not taking place in any part of its business or supply chains. The statement should also include details of the company's policies and procedures for identifying and addressing modern slavery risks, as well as any due diligence processes that it has implemented. Additionally, the statement should outline the training that the company provides to its staff and suppliers on modern slavery issues. Under the UK Modern Slavery Act, companies are required to conduct due diligence on their supply chains to identify and address any modern slavery risks. This includes conducting risk assessments, mapping their supply chains, and engaging with suppliers to understand their policies and practices related to modern slavery. The due diligence process should also involve monitoring and auditing suppliers to ensure that they are complying with the company's modern slavery policies and procedures. If the company identifies any instances of modern slavery in its supply chain, it must take action to address the issue and prevent it from occurring in the future.
Companies must train staff and suppliers on modern slavery risks — and those that fail to comply face serious legal and reputational consequences.
The UK Modern Slavery Act also requires companies to provide training and awareness-raising to their staff and suppliers on modern slavery issues. This includes training on how to identify and report modern slavery risks, as well as on the company's policies and procedures for addressing these risks. In addition, companies must ensure that their suppliers are aware of modern slavery issues and understand the importance of compliance with the law. This may involve providing training or guidance to suppliers on how to identify and address modern slavery risks in their own operations and supply chains. Apart from the moral obligation to prevent slavery and human trafficking, companies that fail to comply with the Act can face legal penalties, reputational damage, and loss of investor confidence. The government can issue an injunction to companies, which can result in the suspension of business operations. In addition, non-compliant companies can face significant fines and other legal sanctions. From a reputational perspective, companies that are associated with modern slavery can face severe criticism from customers, stakeholders, and the media, which can result in a significant decline in market value. Therefore, it is crucial for companies to take the UK Modern Slavery Act seriously and implement robust policies and procedures to prevent modern slavery in their operations and supply chains.
FRDM maps and monitors entire supply chains — including sub-suppliers and commodities — to simplify UK Modern Slavery Act compliance.
FRDM assists some of the world's biggest brands in complying with the UK Modern Slavery Act. FRDM maps and risk-monitors entire supply chains, including sub-suppliers and commodities, using basic vendor-level data to build a dynamic risk monitoring system. Annual modern slavery reports generated through the platform include details about training, mitigation, and impact — and reporting features cut a team's time to prepare reports by 60 to 80 percent. By leveraging purpose-built supply chain transparency software, companies can more easily understand where they are exposed and streamline compliance across jurisdictions. Modern slavery compliance is not just a legal requirement — it is a leadership opportunity to build transparent, ethical, and resilient supply chains that protect people and strengthen business.
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