Modern Slavery Act 2015 | A 10-Year Reflection

July 31^st marks 10 years since the introduction of the Modern Slavery Act 2015 (MSA) in the UK.  It was heralded as “landmark legislation” given that no other European country had specifically legislated against slavery and trafficking in the 21^st century.

Today, we will examine the background to this ground-breaking Statute and the law enforcement powers it has bestowed.  We will go on to consider what the MSA requires of businesses, review its impact, consider best practice and make suggestions for reform.

The History of Modern Slavery

Modern slavery can take many forms, including human trafficking, forced labour, domestic servitude, organ harvesting and child labour. “[It]…is characterised by exploitation of others for personal gain”.

The Slavery Abolition Act 1833 intended to prevent egregious acts of slavery in British Colonies. Whilst physical shackles may not be used, modern slavery still exists, with some victims enduring abhorrent acts of violence and servitude. Prior to the MSA entering into force, it was estimated that there were up to 13,000 modern-day slaves in the UK, 40.3 million globally and 151.6 million child labourers.

Speaking before the MSA became law, the then Home Secretary Baroness Theresa May is reported to have said that the Act would: 

“[send] the strongest possible signal to criminals that if you are involved in this vile trade, you will be arrested, you will be prosecuted, and you will be locked up. And it says to victims, you are not alone - we are here to help you.”

Powers Created by The Modern Slavery Act

The MSA bestowed powers upon the courts and law enforcement bodies, including:

• More stringent sentencing enabling life imprisonment in the most serious cases.
• Confiscation orders.
• Restriction of offenders’ activities through Slavery and Trafficking Prevention Orders and Slavery and Trafficking Risk Orders.
• Closing loopholes to enable police and Border Control to board vessels at sea.

In addition, the MSA protects and supports victims and survivors by: 

• Creating a statutory defence.
• Enabling Reparation Orders against those prosecuted so that victims are repaid.
• Providing advocates for children.
• Introducing protections for those with overseas domestic worker visas.

It also created the appointment of an Independent Anti-Slavery Commissioner (IASC) to ensure the Act is fully utilised.

Requirements for Businesses from the Modern Slavery Act

Section 54 of the MSA provides for transparency in the supply chain (TISC). It outlines the requirement for commercial enterprises in the UK with a turnover of £36 million or more to prepare an annual slavery and human trafficking statement to confirm that their business and supply chains are free from slavery and human trafficking. 

For applicable companies, the statement must be approved by the Board of Directors and signed by a director. If the organisation has a website, it must publish the statement on its website with a link on the homepage. However, the contents of the statement are optional and may include information concerning:

• Organisational structure and supply chains.
• Policies relating to slavery and human trafficking.
• Due diligence.
• Steps taken to mitigate the risk of slavery and human trafficking in vulnerable parts of the supply chain.
• Performance indicators where appropriate.
• Staff training.

Is Modern Slavery Still Common?

Whilst there is no doubt that public awareness of modern slavery has increased over the past 10 years, the true scale and cost of modern slavery is unknown. In 2023, 17,004 potential victims were referred to the Home Office under the National Referral Mechanism (an instrument created by the MSA).

However, the Centre for Social Justice estimates that there are a staggering 100,000 victims in the UK and has further calculated the economic and social cost to be an astronomical £32.9 billion per year.

Despite these alarming statistics, prosecution and conviction rates are relatively low.

Some critics have also argued that, as the MSA does not require businesses to conduct due diligence and declare their supply chains slave free, an opportunity has been lost.

Further, in an interview with ISEP earlier this year, Dr Maryam Lotfi, co-director of the Modern Slavery and Social Sustainability Research Group at Cardiff Business School, stated that enforcement of the MSA was “very weak” with 40% of eligible companies failing to publish annual reports and some that do, simply copy their previous year’s. As there is no penalty for non-compliance, these companies can act (or more accurately, fail to act) with impunity. 

Also interviewed by ISEP, Sian Lea, business and human rights manager at Anti-Slavery International, suggested that the UK has been left behind as other countries now have more robust legislative frameworks. She cited examples of UK supermarkets selling purée produced in China from tomatoes grown using forced labour and the UK government’s procurement of latex gloves from Malaysia, which had been banned in the USA due to concerns over forced labour. She further highlights the impact of the Uyghur Forced Labor Prevention Act 2021 in the USA, which reduced imports of Uyghur cotton by 40%.

Best Practices for Businesses to Avoid Forced Labour

Despite the lack of mandatory legal requirements, businesses striving to become more sustainable will want to ensure that forced labour is not present within their organisational structure and supply chain. This is especially pertinent as modern slavery can be found in most sectors and victims are often hidden in plain sight. Recent statutory guidance on TISC urges businesses to 

“…be proactive in identifying risks, conduct meaningful engagement with workers, trade unions, suppliers and stakeholders to prevent and mitigate harms to workers”.

If abuse is subsequently uncovered, a victim-centred approach to remediation is needed, as well as transparency in modern slavery statements. 

To eliminate modern slavery from the supply chain, the statutory guidance suggests that businesses:

• Conduct supply chain mapping to gain information on both labour and materials to understand direct suppliers (tier 1) and subsequently indirect suppliers (tiers 2 and below).
• Collaborate to exchange information in these complex environments to help identify potential victims and share information on Open Supply Hub.
• Engage with external stakeholders for support using the interactive map created by the Responsible and Ethical Private Sector Coalition against Trafficking.
• Conduct due diligence and ensure responsible conduct in policies and management systems.
• Continually strive to improve response to modern slavery and publish progress in annual modern slavery statements. 

Businesses could also:

• Raise awareness amongst staff, especially in UK industries with elaborate chains of contractors and subcontractors.
• Circulate and encourage staff to complete the slavery footprint survey to further raise awareness and spark meaningful conversation.

Potential Reform of the Modern Slavery Act 2015

The UK government is aware that the MSA is in need of review, and the IASC is partnering with business, academics, international stakeholders, politicians and civil society to consider more effective measures. 

In a move to strengthen the MSA, Sian Lea considers that the EU’s progressive Corporate Sustainability Due Diligence Directive 2024 could be followed, which would oblige eligible organisations to:

“….identify, prevent, mitigate and account for human rights abuses and environmental harm in their supply chains”.

The MSA has certainly raised public awareness of modern-day slavery, whose victims are often in plain sight but remain unseen. However, the successful prosecution of perpetrators is low. Not compelling commercial enterprises to conduct due diligence was a missed opportunity, resulting in the landmark legislation lacking impact. Nevertheless, recent statutory guidance on TISC provides helpful advice to businesses wanting to address this serious concern. 

To find out more about Modern Slavery, the ISEP Certificate in Sustainability and Environmental Management covers the topic in great detail alongside other sustainability and environmental management issues found in the workplace. If you haven’t already, we recommend completing the Foundation Certificate first to strengthen your knowledge

To find out more about other ESG topics, stay up to date with the Astutis Knowledge Hub and find any related blogs or topics below.