Modern Day Slavery Continues to be an Issue. Is Your Company Affected?

Modern Day Slavery Continues to be an Issue. Is Your Company Affected?

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Friday, January 15, 2016 - 4:00pm

CONTENT: Article

Slavery and forced labor continue to become increasing areas of focus for companies of all sizes. However, with complex supply chains and evolving regulations, companies find it difficult to properly disclose this information. The UK Modern Day Slavery Act was created in an effort to simplify this disclosure process. The act requires commercial enterprises to produce annual slavery and human trafficking statements.

In the article, “Slavery and Human Trafficking Statements,” by Morrison and Foerster UK, two criteria will determine the scope of affected companies: A revenue threshold of £36 million, and the value of transactions conducted in the UK. In general, the act applies to “commercial organizations,” doing business in the UK. Additionally, the act will affect UK-based subsidiaries and branches of non-UK corporations. The threshold for the value of transactions done in the UK has not yet been determined.

The article continues on to specify the content of slavery and human trafficking statements. The statement is broken down into three sections; content, approval, and timing. The content of the statement does not have a length requirement, but is rather based on the business’s efforts. It should summarize the steps the organization has taken during the financial year to identify slavery and human trafficking (if any) within their supply chain, and document their efforts to eliminate the problems. The statement must be approved by the company’s board of directors and the statement must be published within six months of their respective financial year end. 

Legal obligations and industry standards with respect to the UK Modern Slavery Act are always changing, and it is crucial for companies to stay in front of this issue. If this affects your company, or you would like to learn more about this issue, click here.