Taking stock ten years on from the Modern Slavery Act
The ten year anniversary of the Modern Slavery Act offers an opportunity to reflect on the progress that has been made in tackling modern slavery, the challenges that remain – and what might come next.
When the Act was passed in 2015 it was widely celebrated as groundbreaking. It was the first national legislation of its kind, requiring large companies to publicly report on how they address the risk of slavery in their operations through the innovative Section 54, Transparency in Supply Chains provision. In doing so, it raised the profile of modern slavery and its relevance for business, pushing companies to take responsibility for eradicating exploitation from their business and supply chains.
However, the Act has widely been criticised for lacking teeth – including by successive UK governments. There are no penalties for non-compliance, and businesses can comply by filing a report stating they are not taking any steps to address modern slavery.
One of the limitations of disclosure-based regulation – true for climate as well as human rights – is the tendency for businesses to deny, downplay or avoid actively investigating risks that could negatively impact their reputation. Indeed, there is growing consensus that current corporate disclosures do not come close to reflecting the reality of modern slavery in supply chains.
In fact, instances of modern slavery are on the rise, globally and in the UK, driven by factors such as immigration policy, economic hardship, climate change and conflict. As many as 50 million people are estimated to be in modern slavery globally, including 27.6 million people in conditions of forced labour, an increase of 2.7 million since 2016.
Within the UK specifically, sources say that up to 130,000 people are working as forced labour. Sectors such as agriculture and construction have long been recognised as particularly vulnerable. Of course, the deliberately hidden nature of modern slavery – an economic crime involving the exploitation of people for financial gain – makes it harder to address, especially as exploiters become more sophisticated.
While too many organisation shy away from ‘lifting rocks’ for fear of what they might find, growing awareness of the extent of modern slavery across the economy, means increasingly that not finding risks and indicators of modern slavery is actually evidence of poor due diligence, not a reflection of reality.
This is explicit in updated statutory guidance published by the government last month to mark the ten year anniversary of the Act. Developed in consultation with business, civil society, trade unions and academics, the guidance provides practical and comprehensive advice for businesses, in order to support them to demonstrate continuous improvement and play their part in eradicating modern slavery. The government also explicitly encourages businesses to comply with ‘the spirit’ – not just the letter of the law, implicitly acknowledging the limitations of existing legislation
In line with this new guidance, it’s time for businesses to take more proactive action. And not just because the advice has become clearer, with possible revisions to legislation to follow, but for sound business reasons too.
Where we are heading
Globally, the direction of travel is clear(ish). Since the passing of the Modern Slavery Act in 2015, other jurisdictions have introduced more comprehensive regulations. The EU’s Corporate Sustainability Due Diligence Directive, for example, creates an obligation for businesses to not just report on what they are doing to prevent human rights abuses such as modern slavery, but to take action to identify, assess, prioritise, prevent, mitigate and remediate harm to people.
In the United States, forced labour import bans have been used since1930 to protect domestic businesses from foreign competition who profit from exploitation. Since June 2022, $3.67 billion worth of goods have been detained by US Customs and Border Protection under The Uyghur Forced Labour Prevention Act, which targets state-imposed forced labour in the Uyghur Region of China. The EU adopted its own forced labour import ban in November 2024.
The UK government acknowledges that it has fallen behind on addressing modern slavery. It has signalled its intention to become ‘world-leading again’, claiming that ‘all options are on the table’. What this means in practice, and when concrete proposals will be brought forth, remains unclear.
And while successive governments have promised and failed to act on the issue, there are signs of renewed momentum. For instance, the new government has already introduced important measures to address labour exploitation through the Employment Rights Bill. External pressure is mounting too, with business coalitions and NGOs calling for the UK government to introduce a Business, Human Rights, and Environment Act to compel companies to carry out human rights and environmental due diligence.
The updated statutory guidance already reflects this wider shift. It provides detailed examples of good and best practice across the key components of a strong modern slavery response – including organisational policies, supply chain mapping, worker engagement and supplier collaboration.
For businesses, it’s a clear sign that they should start to evaluate whether their current efforts align with these expectations.
The business case for proactive action
Beyond legal compliance or the basic moral obligation, the business case for addressing modern slavery is also becoming more apparent.
A proactive approach to due diligence is important for supply chain resilience. By identifying and addressing hidden risks early, businesses can avoid significant operational disruptions. Forced labour import bans, for instance, can prevent products made with forced labour from entering markets, delaying production and causing financial losses. Businesses may be prevented from entering or expanding into key markets if their products are linked to forced labour.
Access to public and private sector contracts is also increasingly dependent on demonstrable action against modern slavery. Procurement frameworks, particularly in the UK, are aligning more closely with human rights standards. The Procurement Act 2023 provides contracting authorities with stronger powers to exclude suppliers from public procurements where there is sufficient evidence of modern slavery within their supply chains. Organisations that demonstrate robust due diligence may gain a competitive edge where social value is a formal part of the assessment. This week, the UK government committed to amending the Great British Energy Bill to ban the sale of solar panels made with Uyghur forced labour.
Investors, too, are increasingly human rights-conscious and consider modern slavery a financially material issue – actively asking about efforts to prevent risks and remedy harms to people. Not meeting these expectations can have significant implications. When the fashion retailer Boohoo faced allegations that it failed to disclose serious labour rights violations at its suppliers’ factories, it contributed to a £1bn drop in share price. It also triggered a lawsuit from institutional investors.
Reputational and legal risks are also high. Allegations of modern slavery can lead to damaging media exposure and erosion of stakeholder trust. Companies unable to demonstrate thorough due diligence may also face legal challenges for failing to prevent harm in their supply chains. Legal firms are already pursuing such claims against UK businesses.
Combined, these factors form a compelling case for action.
What businesses need to do now
Looking ahead, there is growing consensus that responsible businesses are those that acknowledge the existence and risks of modern slavery – and take clear steps to identify where impacts are, or could be, occurring. They will put in place measures to prevent and mitigate those risks, and be ready to provide remedy where they have caused or contributed to human rights violations, such as modern slavery.
That said, many organisations still feel overwhelmed. Common questions include: Where do we start? What’s expected of us? What constitutes good or best practice? The government’s guidance goes some way to answering these questions, but a significant task still lies ahead for many businesses.
Sancroft can help your organisation to understand and implement the UK government guidance – from identifying where the risks of modern slavery are greatest in your supply chain, to developing effective strategies to address them.
Our approach is pragmatic and principle-led, helping businesses take meaningful action, engage internal and external stakeholders, and align with global best practice frameworks, investor expectations and emerging regulation.
To discuss how we can support your organisation to strengthen your approach to tackling modern slavery, feel free to contact me at rachel.weller@sancroft.com.