What you need to know regarding the UK Modern Slavery Act. Â
Following on from the previous EU Due Diligence (DD) Directive, this article will discuss the UK Modern Slavery Act. The Modern Slavery Act 2015 was enacted by the UK Parliament in 2015 with the aim of regulating modern slavery and human trafficking in companies and supply chains. Japanese companies that meet the requirements described below are obligated to prepare and publish a statement regarding slavery and human trafficking each fiscal year. In addition, even if they do not meet the requirements, they may be asked to cooperate with investigations of other companies that meet the requirements, making this a very influential law. As a guideline for this law, the UK government has published “Transparency in Supply Chains etc. A practical guide” (the following description follows this guideline).
Companies subject to the Modern Slavery Act
An enterprise subject to this Act is a corporation or partnership that meets all of the following requirements:
 (1) It carries on all or part of its business in the UK (whether this applies is determined by a “common sense†approach, regardless of whether it is established in the UK);
 (2) It supplies goods or services; and
 (3) It has an annual total turnover (including the turnover of the company and its subsidiaries, regardless of the proportion of its UK business) of £36 million or more.
 (2) It supplies goods or services; and
 (3) It has an annual total turnover (including the turnover of the company and its subsidiaries, regardless of the proportion of its UK business) of £36 million or more.
–The following are some of the reasons.
Obligation to prepare and publish a statement
Covered companies are required to prepare and publish a slavery and human trafficking statement. The statement must describe the steps they have taken to ensure that slavery and human trafficking are not taking place in their operations or in their supply chains during each financial year (or if they have not taken such steps, a statement to that effect). The following six disclosures are recommended:
1) Organizational structure, business and supply chain (business sector, organizational structure and group relationships, countries from which products or services are sourced, etc.)
2) Corporate policy on slavery and human trafficking (it is recommended that the policy include descriptions of recruitment, procurement policy, code of conduct for employees, relief for victims, etc.)
2) Corporate policy on slavery and human trafficking (it is recommended that the policy include descriptions of recruitment, procurement policy, code of conduct for employees, relief for victims, etc.)
â‘¢ The company’s DD process regarding slavery and human trafficking in its operations and supply chains;
â‘£ Identification of operations and supply chains where there is a risk of slavery and human trafficking occurring, and the measures taken to assess and manage such risks;
⑤ The effectiveness of measures to ensure that slavery and human trafficking do not occur in the company’s operations and supply chains (assessed based on performance indicators that the company considers appropriate);
â‘¥ Training for employees regarding slavery and human trafficking
â‘£ Identification of operations and supply chains where there is a risk of slavery and human trafficking occurring, and the measures taken to assess and manage such risks;
⑤ The effectiveness of measures to ensure that slavery and human trafficking do not occur in the company’s operations and supply chains (assessed based on performance indicators that the company considers appropriate);
â‘¥ Training for employees regarding slavery and human trafficking
– The six points are as follows. The UK government has set up an online registry for the publication of statements to encourage the publication of statements (use of the registry is voluntary).
Considering amendments to ensure effectiveness
Violation of the above obligations may be subject to enforcement through enforcement orders by the UK government, and failure to comply with these orders may result in unlimited fines. However, due to the lack of effectiveness of these sanctions, it cannot be said that the obligations are being fully implemented by the targeted companies, and the UK government is considering amending this law, including the creation of criminal penalties (as of July 2024).
As mentioned above, the UK Modern Slavery Act has attracted attention as the first law to regulate modern slavery in other countries, but it only requires companies to publish a statement and does not require them to implement human rights DD, and government sanctions are ineffective, so the effectiveness of the law is essentially left to public oversight. However, with the enactment of DD-related laws in France and Germany, as well as the enactment of the EU DD Directive mentioned last time, there is a possibility that the UK Slavery Act will also prescribe the obligation to implement DD in a more effective form, so we need to continue to keep a close eye on it.
*Reprinted from the August 7, 2024 editions of Jiji Express Singapore, Malaysia, Vietnam, Thailand, Indonesia, Europe and the US
Author
