Slaving Away – New Reporting rules on internal and supply chain labour practices
Employment E-alert March 2016 Contact the author:
The Issue The Modern Slavery Act 2015 applies to UK operated businesses with a £36m+ turnover. For financial years ending on 31 March 2016 and later, such businesses must publish an annual Boardapproved statement of steps taken to ensure slavery and human trafficking do not exist in their business or their supply chains (inside or outside the UK). For these purposes: “Slavery” is holding people in slavery or servitude or requiring them to perform forced or compulsory labour
Carolyn Brown Partner, Head of Employment T: +44 (0)20 3755 5390 E: carolyn.brown@howardkennedy.com
“Human trafficking” means facilitating workers’ travel with a view to exploiting them “Exploitation” covers sexual offences, removal of organs as well as working under threats, force or deception.
The Consequences Businesses must set out the steps taken in this respect in that financial year, or specify that no such steps have been taken. Government guidance states that these Board statements may also specify:
Business and supply chain relationships
Relevant policies, including supplier due diligence and auditing processes
Training provided to those in supply chain management
Key risks related to slavery and human trafficking including how those are evaluated and managed
Relevant key performance indicators to enable readers to assess the effectiveness of the business’ anti-slavery activities.
While detailed statements are encouraged, legal compliance does not mandate them.
Guidance Businesses should now:
Assess their suppliers and supply chains for risk
Introduce an anti-slavery policy, this policy should:
identify high risk business and supply chain areas (e.g. types of suppliers heavily reliant on migrant labour)
give guidance to the staff involved in procurement and supplier liaison on identifying ‘red flags’
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provide a mechanism for reporting concerns which ensures speedy action
train staff on this policy
Review procurement arrangements and supplier contracts to ensure that they include appropriate business safeguards including requirements for information and use of compliant policy material as well as contract termination rights if compliance issues arise.
If you would like more information on our services, please visit www.howardkennedy.com here you will find all our latest news, publications and events. This material is for general information only and is not intended to provide legal advice. © Howard Kennedy LLP 2016