Annually, 18 October marks Anti-Slavery Day and during this period we tend to see a range of developments and debates which focus on ways to eradicate modern slavery.
The Government recently published updated guidance on the slavery and human trafficking statement that large businesses must publish each financial year. The required statement should set out the steps taken by the business to ensure no slavery or human trafficking is taking place within their business, or in its supply chains.
Updated guidance
The guidance has been updated in an attempt to clarify some of the requirements and to establish best practice based on statements that have already been seen.
Smaller companies, ie those that do not satisfy the £36 million turnover requirement, have been encouraged to publish a statement voluntarily. This is recommended if the company is looking to supply a larger company that would be required to publish a statement.
These smaller businesses may see the benefits of publishing a modern slavery statement if they are responding to due diligence enquiries or if they are bidding for contracts against a company that has already published a statement.
The statement should be signed by a director who sits on the board that approved the statement and it should also include the date on which it was approved.
A modern slavery statement may include reference to the organisation’s structure, policies and due diligence processes in relation to slavery and human trafficking. However, the updated guidance states that statements “should aim to” include this information. This change suggests that it is best practice to focus on the specific information set out in the underlying legislation when producing a modern slavery statement.
Businesses should consider maintaining an archive of historical statements that are easily accessible online. The aim of this is to increase transparency and highlight which companies are taking slavery seriously. Stakeholders will be able to gauge the company’s progress by comparing statements with those from previous years.
It is recommended that businesses regularly and consistently publish a statement, even if turnover falls below the threshold (of £36 million). This will demonstrate a strong commitment to the prevention of slavery.
The earlier guidance highlighted that labour trafficking is the most prominent form of exploitation recorded for potential child victims of slavery. As a result of this, the updated guidance has introduced a definition of child labour, along with advice on how to spot it.
