Modern slavery remains a pressing concern for businesses operating in the United Kingdom and across global supply chains. The Modern Slavery Act 2015 introduced a statutory requirement for certain organisations to publish a statement detailing the steps they have taken to prevent modern slavery in their operations and supply chains. For companies across England and Wales, understanding who must file a statement and the consequences of non-compliance is essential.
At Blackstone Solicitors, we advise businesses on regulatory compliance, risk management, and corporate governance. This article explains the legal requirements for modern slavery statements, identifies who needs to file them, and outlines the potential risks and enforcement implications of failing to comply.
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The legal framework: Modern Slavery Act 2015
Key provisions
The Modern Slavery Act 2015 seeks to prevent slavery, servitude, forced or compulsory labour, and human trafficking. Section 54 of the Act requires certain commercial organisations to prepare and publish a “slavery and human trafficking statement” for each financial year.
The statement should describe the steps the organisation has taken to ensure that modern slavery and human trafficking are not taking place in its business or supply chains. While the Act does not prescribe a specific format, statements must be approved by the board and published prominently, such as on the organisation’s website.
Purpose of modern slavery statements
The primary aim of these statements is transparency. They are intended to inform stakeholders—customers, investors, regulators, and the public—about the measures an organisation takes to identify, mitigate, and prevent modern slavery risks.
Beyond compliance, statements can strengthen reputation, demonstrate corporate responsibility, and provide evidence of due diligence in procurement and supply chain management.
Who needs to file a modern slavery statement?
Organisational criteria
The statutory requirement applies to commercial organisations meeting the following criteria:
- Carrying on business in the United Kingdom
- Supplying goods or services
- Having an annual turnover of £36 million or more
These thresholds are cumulative, meaning that a parent company must consider the turnover of its group entities.
Geographic considerations
The requirement applies to organisations doing business in the UK, regardless of where they are incorporated. This includes foreign companies with UK operations. Companies with smaller UK operations but large global turnover should therefore assess their obligations carefully.
Types of organisations
Both private and public companies, limited liability partnerships, and certain other corporate structures may fall within scope. Organisations below the turnover threshold are not required to file a statement, but many choose to do so voluntarily as part of broader corporate social responsibility initiatives.
Contents of a modern slavery statement
Core elements
While the Act allows flexibility, statements typically include:
- The organisation’s structure, business, and supply chains: Explaining the nature and scale of operations.
- Policies: Detailing relevant policies on modern slavery, ethical sourcing, and procurement.
- Due diligence processes: Explaining measures to assess and monitor risk in the business and supply chains.
- Risk assessment and management: Identifying high-risk areas and how these are addressed.
- Training and awareness: Describing staff training programmes and communications efforts.
- Effectiveness measurement: Reporting on the effectiveness of steps taken, including audits or reviews.
Statements should be clear, specific, and tailored to the organisation’s activities. Generic or superficial statements are increasingly scrutinised by regulators, civil society groups, and investors.
Board approval
The Act requires that statements are approved by the board of directors (or equivalent governing body) before publication. This ensures accountability and demonstrates that senior management takes responsibility for compliance.
Risks of non-compliance
Regulatory and reputational risk
Failure to publish a modern slavery statement does not carry a direct financial penalty under the Act. However, the SRA and other regulators increasingly consider non-compliance as part of their wider assessment of corporate governance.
Reputational harm is a major risk. Stakeholders, including customers, investors, and NGOs, may view failure to publish or inadequate reporting as a lack of commitment to ethical business practices. In a marketplace where sustainability and responsible sourcing are priorities, this can impact brand value and commercial relationships.
Legal and contractual exposure
Although the Act does not impose criminal sanctions for non-compliance, organisations may face indirect legal exposure. Some commercial contracts now include clauses requiring suppliers and partners to demonstrate compliance with anti-slavery measures. Non-compliance could therefore affect contractual performance or create liability in supply chain disputes.
Enforcement trends and public scrutiny
Enforcement under the Modern Slavery Act has historically relied on public accountability rather than fines. Organisations that fail to produce adequate statements are exposed to public naming, media criticism, and shareholder challenge. High-profile cases have demonstrated that NGOs and advocacy groups actively monitor compliance, increasing the risk of reputational damage.
Best practices for compliance
Conducting a risk-based assessment
Effective statements should be grounded in a thorough understanding of modern slavery risks. Organisations should assess risks across sectors, geographic regions, and supplier relationships. This assessment informs policies, procedures, and monitoring strategies.
Developing robust policies
Policies should be documented, communicated, and integrated into operational practices. Examples include codes of conduct, procurement policies, whistleblowing mechanisms, and supplier standards. Clear policies also support staff and management in identifying and responding to risk.
Training and awareness
Staff training is essential to embed anti-slavery measures across the organisation. This includes frontline procurement teams, human resources, and senior management. Training should be ongoing, updated to reflect emerging risks, and documented for accountability.
Monitoring and reporting
Organisations should implement mechanisms to monitor supply chains and report incidents. Audits, supplier questionnaires, and third-party assessments help identify risk and measure the effectiveness of controls. Monitoring should be documented and reflected in the annual modern slavery statement.
Board oversight and continuous improvement
Senior management must actively review anti-slavery measures. Boards should ensure statements are accurate, comprehensive, and approved prior to publication. Continuous improvement, informed by audits and lessons learned, ensures the organisation remains responsive to evolving risks.
Voluntary disclosure for smaller organisations
While organisations with turnover below £36 million are not legally required to file a statement, voluntary reporting is increasingly common. Smaller firms often use statements to demonstrate ethical commitment, meet customer expectations, and align with broader environmental, social, and governance (ESG) initiatives.
Voluntary statements also prepare organisations for potential future legislative changes and signal responsibility to investors and stakeholders.
Conclusion
Modern slavery statements are a critical component of responsible business practice in the UK. Organisations that fall within the scope of the Modern Slavery Act 2015 must publish a clear, accurate, and comprehensive statement each financial year.
Non-compliance exposes businesses to reputational, contractual, and regulatory risks, while well-prepared statements demonstrate transparency, governance, and commitment to ethical operations.
For companies in England and Wales, the process is not merely a compliance exercise. It is an opportunity to assess supply chain risks, strengthen policies, and reinforce a culture of accountability and integrity. By taking a proactive approach, organisations can meet statutory obligations, protect their reputation, and contribute to the wider fight against modern slavery.
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Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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