Modern slavery: stringent legal reforms
In October 2024, the House of Lords Committee on the Modern Slavery Act 2015 (Select Committee) released an insightful report examining the effectiveness of the UK’s modern slavery legislation. The report calls for significant changes to the Modern Slavery Act, with the goal of enhancing its impact and ensuring businesses are held accountable for preventing exploitation within their supply chains.
As these changes may reshape the legal landscape, businesses need to stay informed about the recommendations and their potential implications. Here, we summarise the key points of the report.
Key findings from the House of Lords Committee Report
The committee’s report paints a picture of a legislative framework that, while a step forward, requires further strengthening to effectively combat modern slavery. The report highlights several areas for improvement and presents recommendations aimed at bolstering enforcement, increasing transparency and expanding victim support.
1. Enhanced transparency in supply chains
The Modern Slavery Act needs stronger transparency provisions. The committee suggests that businesses with an annual turnover of £36 million or more should be required to disclose not only the risks of modern slavery within their operations but also the specific actions they have taken to address and mitigate these risks. This shift would move beyond simple acknowledgment and require businesses to demonstrate tangible efforts in combating exploitation.
2. Stricter enforcement and accountability
The report stresses the need for improved enforcement mechanisms to hold businesses accountable for non-compliance. One of the committee’s suggestions is to create a central registry to track business compliance with modern slavery reporting requirements. Companies that fail to comply could face penalties or restrictions, such as the loss of public sector contracts.
3. Improved victim support systems
Victims of modern slavery should get better support, including improved access to legal aid, healthcare and housing. This is an important area of focus for businesses that may need to adjust their policies to better identify and support victims within their supply chains.
4. Increased resources for law enforcement
Law enforcement agencies should receive more funding and resources to support their investigation and prosecution offences. Businesses could face greater scrutiny, making compliance more important than ever.
5. Expanding the role of the independent anti-slavery commissioner
The Independent Anti-Slavery Commissioner should have expanded powers to oversee the enforcement of the Modern Slavery Act. By increasing the commissioner’s role, the government hopes to strengthen its ability to monitor compliance and coordinate efforts across agencies. We can help businesses navigate interactions with this office, including audits or compliance checks.
6. Potential for broader legislative reform
The government should consider broader legislative reforms, which could include extending the scope of the Modern Slavery Act to address additional forms of exploitation or impose stricter obligations on companies. Businesses may need to prepare for new regulations that could impact their operations and supply chains.
Implications for businesses
The report has significant implications for businesses operating in the UK, especially those with global supply chains or those in high-risk sectors. As the regulatory environment around modern slavery tightens, we can help clients navigate these changes in several key areas:
- Compliance and risk management: assessing current compliance with the Modern Slavery Act and helping implement necessary changes to meet the anticipated stricter requirements.
- Supply chain audits: conducting thorough audits to identify potential modern slavery risks within supply chains and helping take corrective actions before new regulations are enforced.
- Victim support frameworks: designing policies that ensure businesses can properly identify and support affected individuals.
- Representation in investigations: representing clients in investigations or enforcement actions related to modern slavery violations.
- Training and awareness: training sessions for businesses, helping them stay up-to-date on their legal obligations and providing guidance on how to minimise modern slavery risks.
What’s next for businesses?
As the government considers implementing the report’s recommendations, businesses will face a more complex legal landscape and heightened expectations around transparency and accountability. Staying informed about legislative updates is essential for businesses to avoid legal risks and safeguard their reputation.
We can help clients navigate these changes by providing expert guidance on compliance, risk management, operational adjustments and responding to regulatory inquiries.
If you want to explore how our business and corporate law experts can assist you, please contact our team below.
