Section 54 of the Modern Slavery Act 2015 (MSA 2015) requires some organisations to produce and publish an annual slavery and human trafficking statement. This Practice Note explains MSA 2015, s 54.
References:
Modern Slavery Act 2015, s 54
What is slavery?
MSA 2015 covers four activities, which are defined by reference to the European Convention on Human Rights (ECHR), article 4:
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Slavery |
Exercising powers of ownership over a person |
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Servitude |
The obligation to provide services is imposed by the use of coercion |
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Forced or compulsory labour |
Work or services are exacted from a person under the menace of any penalty and for which the person has not offered themselves voluntarily |
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Human trafficking |
Arranging or facilitating the travel of another person with a view to their exploitation |
All four activities should be covered in a slavery and human trafficking statement.
Who is required to publish a slavery and human trafficking statement?
The requirement to publish a statement applies to organisations meeting the following criteria:
References:
MSA 2015, s 54
- commercial organisation—the definition appears to catch companies, limited liability partnerships (LLPs) and standard partnerships, but not sole traders
- supplying goods or services
- carrying on business in the UK
- with a total turnover of £36m or more
The £36m turnover threshold will rule out many organisations, although you may wish to publish a statement in any event, eg because:
- the government encourages all businesses to develop an appropriate and effective response to modern slavery
References:
Home Office, Transparency in Supply Chains etc. A practical guide, para 2.5 
- it could be a requirement of competitive tendering
- for corporate social responsibility reasons
- as an employer you have a responsibility to ensure your employees and colleagues are safeguarded
- it’s a good way to demonstrate you are protecting your workers
- it can help protect and enhance your reputation and brand
- it could help protect and grow your customer/client base, as more customers/clients seek out businesses with higher ethical standards
- of improved investor confidence
- it can result in greater staff retention and loyalty based on values and respect, and
- it can help develop more responsive, stable and innovative supply chains
This is reinforced by Home Office guidance:
References:
Home Office, Transparency in Supply Chains etc. A practical guide, para 3.14
‘Organisations which do not meet the requirements in the Act, for example by having a turnover below £36m, can still choose to voluntarily produce a ‘slavery and human trafficking statement’. Smaller organisations may be asked by those they are supplying goods and services to if they have a statement or policy setting out their approach to tackling modern slavery, especially if they are bidding for contracts with larger businesses above the threshold. Therefore, smaller organisations may find it helpful to voluntarily produce a statement as a means of managing these requests and providing a level of assurance to their customers. Even if the legislation does not apply, we would encourage all businesses to be open and transparent about their recruitment practices, policies and procedures in relation to modern slavery and to take steps that are consistent and proportionate with their sector, size and operational reach.’
Format of the statement
The government has not been prescriptive about the layout of the statement so it’s up to you how you present your statement.
References:
Home Office, Transparency in Supply Chains etc. A practical guide paras 4.1–4.4
You should remember it’s a public-facing document.
It should:
- be written in simple language that is easily understood
- be succinct, but cover all the relevant points
- provide appropriate links to relevant publications, documents or policies (eg to your CSR policy)
- be in English, but may also be provided in other languages, relevant to your business and supply chains
Contents of the statement
Again, the government has not been prescriptive here.
It’s up to you how much detail you provide, but you must include in the statement all the steps you’ve taken. The information presented in your statement is likely to be determined by the complexity of your structure and supply chains and the particular sectors and jurisdictions in which your suppliers are involved.
The statement must set out:
References:
MSA 2015, s 54
- the steps you have taken during the financial year to ensure slavery and human trafficking is not taking place in any part of your supply chains or your own business, or
- that you have taken no such steps
This doesn’t mean you must guarantee your entire supply chain is slavery free. It means you should capture all the actions you’ve taken.
References:
Home Office, Transparency in Supply Chains etc. A practical guide para 2.3
It is possible to comply with MSA 2015 by simply publishing a statement that you have taken no steps to ensure slavery and human trafficking is not taking place. Such an approach is unlikely to be perceived as best practice and may place you at a disadvantage on some tenders.
MSA 2015 provides provide a non-exhaustive list of information you should include:
References:
MSA 2015, s 54(5)
- a brief description of your business model and supply chain relationships
- your policies relating to modern slavery and human trafficking
- your due diligence and auditing processes
- the principal risks related to slavery and human trafficking including how you evaluate and manage the risks in your organisation and your supply chain
- relevant key performance indicators (KPIs), ie measures that will assist the reader of a slavery and human trafficking statement to assess the effectiveness of the activities described in the statement
- training available and provided to those in supply chain management and the rest of the organisation
The government guidance says you should aim to include all of this information.
Your statement should paint a detailed picture of all the steps you have taken to address and remedy modern slavery, and the effectiveness of all such steps. The table below contains suggested details/information you should aim to include in your statement under each of these points:
References:
Home Office, Transparency in Supply Chains etc. A practical guide, Annex E
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Business model and supply chain |
—the sector you operate in and whether any work is seasonal
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Your policies |
—the process for policy development
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Due diligence and auditing |
—details of actions you’ve taken to understand the business operating context
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Risk assessment |
The government guidance does not set out examples of how you might present this information in your statement.
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Key performance indicators (KPIs) |
KPIs could be used in a modern slavery statement in two ways:
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Training |
The government guidance does not set out examples of how you might present this information in your statement.
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Approval and signature of the statement
MSA 2015 requires that the statement is approved and signed by an appropriate senior person in the business. This ensures senior level accountability, leadership and responsibility for modern slavery and gives it the serious attention it deserves.
References:
Home Office, Transparency in Supply Chains etc. A practical guide, para 6.3
The person required to sign the statement depends on the type of organisation:
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Company |
approved by the board of directors (or equivalent management body) and signed by a director (or equivalent) |
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Limited liability partnership |
approved by the members and signed by a designated member |
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Traditional partnership |
signed by a partner |
It is best practice for the director signing the statement to sit on any board responsible for approving the statement. The statement should include the date on which the board or members approved it—as well as the date on which it was signed.
References:
Home Office, Transparency in Supply Chains etc. A practical guide, para 6.3
Publishing the statement
Assuming you have a website, you must:
References:
MSA 2015, s 54
- publish the slavery and human trafficking statement on that website, and
- include a link to the slavery and human trafficking statement in a prominent place on the website homepage
You can also add your statement to the government’s modern slavery statement registry . The registry was launched in March 2021 and its use is currently optional (but encouraged by the government). Planned changes to MSA 2015 will mean in future it will be mandatory for organisations caught by the requirement to publish a statement to also submit it to the registry—see: Future changes to slavery and human trafficking statements below.
References:
gov.uk, Publish an annual modern slavery statement
In the highly unlikely event that you meet the qualifying criteria of MSA 2015 but you do not have a website, you must provide a copy of the slavery and human trafficking statement to anyone who makes a written request for one within 30 days of receiving the request.
Where you have more than one website the government recommends placing the statement on the most appropriate website relating to your business in the UK. Where there is more than one relevant website, you should place a copy or a link on each relevant website.
References:
Home Office, Transparency in Supply Chains etc. A practical guide, para 7.2
A prominent place may mean a modern slavery link that is directly visible on the home page or part of an obvious drop-down menu on that page. The link should be clearly marked so that the contents are apparent. The government recommends a link such as ‘Modern Slavery Act Transparency Statement’.
References:
Home Office, Transparency in Supply Chains etc. A practical guide, para 7.3
The Home Office recommends that historic statements should remain available online even after new statements are published. This is designed to encourage transparency and accountability, as it allows the public to compare statements and monitor progress over time.
References:
Home Office, Transparency in Supply Chains etc. A practical guide, para 7.5
Timing and frequency of the statement
To ensure the information contained is relevant and up to date, the government expects statements to be published as soon as reasonably practicable after the end of each financial year. It encourages organisations to report within six months of financial year end.
References:
Home Office, Transparency in Supply Chains etc. A practical guide, para 7.4
The statement must be prepared and published each financial year.
References:
MSA 2015, s 54
You must complete a statement for each financial year in which your turnover meets the £36m threshold. However, the government strongly recommends once you have published a statement that you continue to produce a statement even if your turnover falls below the threshold because producing a regular annual statement will ensure you can build on earlier statements and demonstrate that you are being transparent, not because you’re required to do so, but because you consider it important.
References:
Home Office, Transparency in Supply Chains etc. A practical guide, para 7.6
Failure to comply
The Secretary of State may seek an injunction through the High Court requiring the organisation to comply. If the organisation fails to comply with the injunction, it will be in contempt of a court order, which is punishable by an unlimited fine.
In practice, failure to comply will mean you have either not produced a statement, not published it on your website (where you have one) or you have not set out the steps taken by the organisation in the relevant financial year. While the government encourages clear, detailed and informative statements, legal compliance doesn’t turn on how well the statement is written or presented (provided it sets out what it should set out).
References:
Home Office, Transparency in Supply Chains etc. A practical guide, para 2.7
However, a failure to comply with the requirement to publish a transparency statement may damage the reputation of your business and it will be for consumers, investors and Non-Governmental Organisations to engage and/or apply pressure where they believe insufficient steps have been taken.
Future changes to slavery and human trafficking statements
In 2018, the government commissioned an independent review of the operation and effectiveness of MSA 2015 and potential improvements that could be made to ensure it is and remains fit for purpose. One of the areas for review was the operation of the transparency in supply chains provisions in MSA 2015, s 54 and is likely to lead to changes to the slavery and human trafficking statement requirements.
References:
gov.uk, Independent review of the Modern Slavery Act
The independent reviewers published an interim report on the transparency in supply chains provisions on 22 January 2019 and the final report was published on 22 May 2019. The reviewers made a number of recommendations for changes to the transparency in supply chains provisions to ensure compliance and drive up the quality of slavery and human trafficking statements.
References:
gov.uk, Independent review of the Modern Slavery Act 2015 second interim report: transparency in supply chains
gov.uk, Independent review of the Modern Slavery Act: final report
The government published its response to the final review report on 9 July 2019, together with a consultation on possible changes to the transparency in supply chains provisions.
References:
Government response to the independent review of the Modern Slavery Act
Transparency in supply chains consultation
On 22 September 2020, the government published its detailed response to the consultation. It confirmed the government will:
References:
gov.uk, Response to the Transparency and supply chains consultation
gov.uk, New tough measures to tackle modern slavery in supply chains, 22 September 2020
- mandate the key topics that modern slavery statements must cover—if an organisation has not taken steps within an area, it must state this clearly and will be encouraged to provide reasons
- introduce a single reporting deadline of 30 September and a shared reporting period of 1 April to 31 March
- publish new guidance for businesses and public sector organisations—this will highlight the importance of transparency, risk-based action and industry-level collaboration and will include best practice approaches to reporting against the future required areas
- extend the scope of the reporting requirements to include public sector bodies with a budget of £36m or more
- require slavery and human trafficking statements to be published on a new government digital reporting service
- require statements to state the date of board approval and director sign off and require group statements to name the entities covered
- consider enforcement options (including civil penalties) alongside work being carried out on developing a Single Enforcement Body for employment rights
The government’s proposals cover England, Scotland and Wales, except for the extension of the scope of the requirements to public sector bodies, which extends to England and Wales only. The Scottish government is to consult separately on this proposal. All the proposals are subject to a separate consultation process in Northern Ireland.
Timing of changes
Most of the government’s proposals will require changes to primary legislation and in May 2022 the government announced its intention to bring forward a new Modern Slavery Bill as part of its 2022–2023 legislative programme. The government has previously stated revised guidance would be issued in 2020, to be further revised once the legislation has been changed. This is still awaited.
The government has however launched its new online reporting service, the modern slavery statement registry. Use of the registry is currently voluntary, ahead of legislative change to mandate its use—see: Publishing the statement above.
