UK: Modern Slavery – A Big Deal For Better Business

Last Updated: 12 January 2017
Article by Taylor Wessing

Whilst still in its infancy, the effects of the Modern Slavery Act are now starting to emerge. So far, more than 1,000 organisations doing business in the UK have produced a modern slavery transparency statement. Many more are expected over the coming months. So why is this so important, and what do businesses now need to do?

Some context

To find evidence why transparency in the supply chain is so important, look no further than the BBC's recent Panorama expose on the alleged use of child refugee workers in Turkey to produce clothes for high street favourite Marks & Spencer.

Alternatively you can read Amnesty International's report linking Colgate toothpaste and Dove soap to the production of palm oil by children as young as eight.

In a world where brand is king, and consumers want greater visibility over the provenance of what they buy, these stories are enough to have a serious and long-lasting impact.

What does the Modern Slavery Act have to do with this?

The Act requires certain organisations to produce and publish an annual statement setting out the steps taken to ensure that no form of modern slavery exists anywhere in its business or its supply chain. The aim is to encourage organisations to take responsibility for not only their own use of labour but also the use of labour in the organisations that supply goods and services to them. The intention is that in doing so, this will raise standards across the board.

The Act applies to all commercial organisations producing goods or services that do business in the UK and have an annual global turnover of over £36 million.

It's not where you come from that matters...

Importantly, an organisation does not need to be based in the UK to be considered to be doing business in the UK. An overseas-based foreign parent company supplying goods to its UK subsidiary is likely to meet the requirements.

The financial requirement

The trickiest part of working out if an organisation is required to comply with the Act is the financial question. When calculating if an organisation meets the financial threshold, account must be taken of the turnover of all subsidiaries (not parents) of that organisation. Taking an example, consider the following company structure:

In this example, if Company A is operating independently of its subsidiaries and not carrying out any business in the UK, it will not need to produce a statement. Its turnover becomes irrelevant when deciding if any of its subsidiaries need to produce a statement.

If Company B is a commercial organisation carrying out business in the UK, to work out if it meets the financial threshold, account need to be taken over the turnover of all three of its subsidiary companies. As, combined, their turnover exceeds £36m, Company B will need to produce a statement.

To make life easier, we have developed a free, quick and easy assessment tool to help organisations find out whether they need to comply with the Act and what sort of statement they might need.

The clock is ticking

So why is this relevant now? Those organisations covered by the Act must produce their first statement within six months of the end of the first financial year date on or after 31 March 2016. For example, those organisations whose financial year end fell on 31 March 2016 were required to produce their first statement by 30 September 2016. Many others whose financial year end is on 31 December 2016 will have until 30 June 2017. So, expect the number of statements to rise considerably early next year.

It is also worth stressing that this is an annual obligation. Each year, organisations will be expected to review the steps that have been taken over the previous 12 months and update their statements accordingly – so this is far from a box-ticking exercise.

Publishing a statement

Whilst the legal sanctions for non-compliance are fairly tame (with the Secretary of State able to bring an injunction to force an organisation to publish a statement) the real teeth to this legislation is likely to be the potential reputational impact. Against the backdrop of high profile news stories involving the likes of M&S, no organisation will want to be identified as not taking this issue seriously.

This is why the publication requirements of the Act are so important. The Act requires a statement to be published in a prominent location on an organisation's website (whichever is most appropriate to its UK business). A public register of those who have made statements so far is also available here. It will become increasingly obvious which organisations have and have not complied.

There is of course a more positive side to this. The aims of the Act, insofar as it seeks to reduce the prevalence of modern slavery globally, are clearly laudable and organisations can rightly use the requirements of the Act to review and improve the steps taken to ensure that modern slavery plays no part in its business or supply chain. It is also an opportunity to be clear about the standards which are set and how they are delivered.

And if that was not enough, the government is now consulting on introducing a requirement for a statement on slavery and human trafficking to be included in an organisation's annual report and accounts. The message is that this is clearly here to stay.

More information

For more information about the Modern Slavery Act and how we can help your organisation visit our website or contact our Modern Slavery experts.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.