The UK Modern Slavery Act of 2015 was enacted to show the country’s commitment to eradicating modern slavery and protecting vulnerable individuals. Modern slavery is defined as the process of an individual being exploited for personal or commercial gains, which includes human trafficking, forced labor, and bondage for debt.

According to the UK Parliament discussion on May 10, 2023, human trafficking is the recruitment, transportation, transfer, harboring, or receipt of people through force, fraud or deception with the aim of exploiting them for profit. It is distinct from people smuggling, which is illegal or clandestine transportation of people across international borders with their consent.

Modern Slavery is an umbrella term which encompasses human trafficking and slavery, servitude and forced or compulsory labor. Human trafficking can involve a range of criminal activity including sexual exploitation, labor exploitation, domestic servitude, and organ harvesting.

Affected Companies

Any company and its subsidiaries in the United Kingdom with a minimum revenue of £36 million. The requirements extend to the companies’ operations and supply chains.

This law applies to both British and non-British entities.

Requirements

A quick summary of the minimum requirements as stated by the law include:

All businesses are required to identify, prevent, and mitigate modern slavery in their operations and supply chains.

Each company must create comprehensive statements regarding modern slavery including how their company manages risk assessments, how the company measures key performance indicators (KPIs) that track slavery and the mitigation process, as well as documenting all methods of due diligence.

It is required that companies submit the aforementioned statement to the UK Modern Slavery Registry by September 30 of each year.

Lastly, a company’s modern slavery statement must be accessible to the public on the company’s website.

Legal Cases and Violations

In May of 2023, the Home Affairs Committee took evidence from the Chief Executive of the Gang Masters and Labour Abuse Authority regarding human trafficking. They stated that there are four types of exploitation that occur: criminal, labor, sexual, and domestic servitude. They explained that there is a significant difference in how men and women are trafficked. Men and boys are typically trafficked for criminal activities and labor exploitation, where as women and girls are more likely to be exploited through sexual and domestic servitude.

Any violation of the law is punishable such that upon a conviction or indictment offenders may receive sentences ranging from twelve months imprisonment, fines, or life imprisonment.

In recent legal searches, Tesco is being sued by 130 workers at VK Garment Factory (VKG) in Thailand for alleged negligence and unjust enrichment. The workers claim they suffered forced labor and were made to work 99-hour weeks in bad conditions and for low pay. According to the Osborne Clarke law firm, this is the first time legal action has been taken by a foreign company in English courts. Many companies that offshore manufacturing may face similar challenges in the years to come.

Moving Forward

The UK Modern Slavery Act represents a significant milestone in the fight against human trafficking and modern slavery. The Act provides a robust legal framework and sends a powerful message that the UK will not tolerate the exploitation of vulnerable individuals.

All companies placing product on the market in the United Kingdom are subject to the requirements of the UK Modern Slavery Act of 2015 and will be evaluated accordingly. Companies doing business in the UK must have programs in place to monitor the work force and all new employees. Much of the UK labor force is now being supplied by the process of illegal immigration.

Bio:

Kelly Eisenhardt is Co-Founder and Managing Director at BlueCircle Advisors, an environmental compliance and sustainability consulting and training firm based in Massachusetts (www.bluecircleadvisors.com.)  In her role at BlueCircle Advisors, she is responsible for providing business intelligence, strategy and implementation of environmental, social and governance (ESG) risk programs.  Her experience aligns well with her client’s needs for technology, compliance, and sustainability expertise by helping companies create and manage their corporate environmental and social responsibility programs.