Independent Review of the Modern Slavery Act published

The Independent Review established by the Government on the workings of the Modern Slavery Act 2015 has called for tough new changes to the legislation on transparency in supply chains. The Review’s second interim report urges the Government to ensure that failure to fulfil modern slavery statement reporting requirements should result in disqualification of those responsible.

Under the proposals, companies would be required to consider the entirety of their supply chains and statements would be uploaded to an easily accessible, public, government-run repository. The Review has also called for an internal Government list of companies that are covered by the legislation.

The Review of the Act was announced in July 2018 at the request of the Prime Minister in an attempt to strengthen the existing legislation. The report on transparency in supply chains is the second of two interim reports, the first of which, on the Independent Anti-Slavery Commissioner, was published in December 2018.

Authored by Review chair Frank Field MP and reviewers Maria Miller MP and Baroness Butler-Sloss, the report also argues that the legislation on supply chains should be extended to public sector organisations, including Government departments and the NHS. Non-compliant companies would not be eligible for public contracts.

The report’s authors hailed the recommendations, if implemented, as a significant step forward in combating the scourge of modern slavery.

The report also recommends:

-          That individual companies should remain responsible for determining if they need to produce a slavery and human trafficking statement.

-          Section 54(4)(b), which allows companies to report that they have taken no steps to address modern slavery in their supply chains, should be removed.

-          The six areas set out in the act as areas that an organisation’s statement may cover should become mandatory.

-          Statements should include the steps that organisation’s intend to take in the future.

-          The Independent Anti-Slavery Commissioner should monitor compliance.

-          Businesses should have a named, designated board member who is personally accountable for the production of the statement.

-          The consequences of a failure to fulfil the statement reporting requirements should extend to directors’ disqualification.

Chair of the Review, Frank Field MP, said: “The Modern Slavery Act is due an upgrade. We set a kitemark with the original legislation but are now falling behind in the global race to bring an end to slavery in supply chains. Our interim report sets out clearly the steps that need to be taken for us to remain a world leader in this area. We need to be building accountability into the legislation all the way up to board level. We expect the Government to agree to these common sense proposals.”

Baroness Butler-Sloss added: “Our report offers clear and practical proposals for building on section 54 of the Act. By requiring organisations to create a full, mandatory statement we aim to ensure compliance. This, crucially, includes Government departments and the public sector. Eradicating modern slavery must be a truly cross-societal effort.”