The issue of modern slavery has once again captured the headlines, following a case that took place in late 2023, but which was not reported until 30th September 2024 due to reporting restrictions. The UK fast-food giant McDonald's has faced scrutiny after allegations that staff in a McDonald's restaurant operated by a franchisee were subjected to exploitative conditions, including poor wages, excessive hours, and inadequate working environments. This high-profile case is a reminder to businesses of their obligations to prevent such abuses.
Modern slavery can infiltrate even the most reputable brands. The Modern Slavery Act 2015 was introduced to help combat this issue, obligating businesses to take proactive steps to prevent modern slavery and human trafficking in their operations and supply chains.
Legal Requirements: The Modern Slavery Statement
Under the legislation, businesses operating in the UK with an annual turnover of £36 million or more are legally required to publish a modern slavery statement. This statement must detail the steps the company has taken to ensure that slavery and human trafficking are not present in its operations or supply chains.
Failing to address modern slavery can lead to reputational damage, legal penalties, and loss of consumer trust.
Developing Robust Modern Slavery Policies
The implementation and maintenance of effective policies and procedures is one aspect of a modern slavery compliance programme. These policies should include:
- Risk Assessments – Regular assessments of supply chains to identify potential areas where modern slavery may occur.
- Supplier Due Diligence – Ensuring that suppliers adhere to ethical labour practices and that there are clear consequences for non-compliance.
- Whistleblowing Mechanisms – Establishing confidential reporting systems for employees and workers to report instances of modern slavery or human trafficking.
- Staff Training – Equipping staff with the knowledge to identify and report signs of modern slavery within their operations.
Clear and enforceable contracts with suppliers, alongside robust monitoring, and auditing processes, will help to mitigate risks.
How We Can Help
At Herrington Carmichael, our Commercial & Regulatory Law team is committed to helping businesses navigate their obligations under the Modern Slavery Act. We understand that compliance can be complex, especially for organisations with extensive supply chains or global operations. Here is how we can assist:
Policy Development: Our team work with businesses to develop modern slavery policies that are fit for purpose, ensuring that the organisation complies with its obligations while safeguarding its reputation.
Modern Slavery Statement Preparation: For businesses over the £36 million threshold, or for smaller businesses wishing to voluntarily publish a statement, we can help draft modern slavery statements that meet the legal requirements.
Supplier Contract Auditing: We can conduct thorough reviews of contracts and documentation with suppliers to ensure that they comply with modern slavery laws, identifying any risks or gaps in compliance.
Training and Awareness Programmes: We offer comprehensive training sessions and resources to ensure that staff understand the signs of modern slavery and know how to respond appropriately. This training can be tailored to different sectors and roles within the relevant organisation, ensuring that all colleagues are equipped to spot potential risks.
Conclusion
Modern slavery can affect businesses of all sizes and in all sectors. With the spotlight now on high-profile cases like the one mentioned above, it is more important than ever for businesses to ensure their operations and supply chains are compliant.
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.
