Stricter reporting requirements relating to the prevention of modern slavery and human trafficking have been proposed for organisations by the new Immigration and Asylum Bill, together with the introduction of financial sanctions for non-compliance.
Current requirements
The Modern Slavery Act already requires companies with an annual global turnover of at least £36 million, carrying on part of their business in the UK, to publish a Modern Slavery Statement, detailing the steps taken (if any) by the company and its supply chains in the previous financial year to prevent modern slavery and human trafficking. This must be reviewed and updated annually.
Proposed changes
The changes, which will reform section 54 of the Modern Slavery Act 2015 are as follows:
- The six following topics must now be addressed in the annual statement:
- Details of the organisation’s operations and supply chains where there is a risk of human trafficking (or state that no assessment has been carried out and the reasons for this);
- Details of the steps taken to mitigate the identified risks (if any);
- The organisation’s policies on slavery and human trafficking (or an explanation as to why these don’t exist);
- The organisation’s due diligence processes to address slavery and human trafficking (or an explanation as to why these don’t exist);
- Relevant training for staff (if any);
- An assessment of the effectiveness of the steps taken to address modern slavery and human trafficking using performance indicators (or an explanation as to why this has not been carried out).
- Financial sanctions for non-compliance. This will be the greater of (i) 1% of total turnover/budget or (ii) £1 million.
- Statements must be published prominently on the company’s website as soon as possible after the financial year end (rather than within 6 months).
- The Statement must be approved and signed by senior management, i.e. the board of directors.
- Public authorities will be brought into scope of the reporting requirements.
As we wait for the legislation to be finalised, we recommend that companies review their current practices in relation to preventing modern slavery and ensure any gaps are addressed now. Senior management must be ready to ensure compliance with the new rules to avoid possible financial sanctions. For further guidance and advice, please get in touch with our team.
Madeleine Rhodes email: mrhodes@redfernlegal.com
