The UK Supreme Court has recently rejected Dyson's bid to block a lawsuit brought by 23 migrant workers, alleging modern slavery and abuse at Malaysian factories that supply Dyson, allowing the case to proceed in the English High Court. The Supreme Court's refusal to hear Dyson's challenge to jurisdiction indicates that the English courts, in certain circumstances, are willing to accept jurisdiction over claims brought for alleged activities overseas.
This decision comes shortly after the UK Home Office released an updated version of its Statutory Guidance on Transparency in Supply Chains (the 'Guidance') in March 2025, which aims to clarify how organisations should comply with the requirement to publish an annual Modern Slavery Act Statement (the 'Statement' or 'MSS') under Section 54 of the Modern Slavery Act 2015 ('MSA').
While the Guidance is unlikely to materially impact FY2024 reporting, organisations that have not yet reported should consider incorporating the Guidance where feasible, or alternatively incorporating a note to confirm they are unable to do so for the relevant reporting period. Companies are also advised to familiarise themselves with the Guidance and formulate a structured action plan for the remainder of 2025, in order to be appropriately positioned for subsequent reporting periods.
In light of the Guidance, what are the key updates introduced and how might they affect your business?
In-depth disclosure guidance for modern slavery statements
Section 54(5) of the MSA specifies content that may be included in a Statement, which is broken down into 6 sections:
- organisational structure and supply chains,
- policies,
- risk assessment and management,
- due diligence,
- training, and
- monitoring and evaluation.
Where previous guidance offered high-level direction, the new Guidance provides detailed recommendations on what an organisation may include for each of these six sections, thus increasing expectations on transparency.
Recommendations are signposted as Level 1 or Level 2 reporting. Level 1 disclosures "may be more appropriate for [organisations drafting MSS for the first time], but as organisations become more familiar with the reporting requirements, they are encouraged to progress to include level 2 disclosures and beyond".
Each section also makes recommendations for 'key actions to consider' and contains case studies alongside other practical suggestions.
General principles and continuous improvement
The Guidance introduces a new section on "General Principles for Undertaking Anti-Slavery Activities", which signals a broader strategic shift beyond mere compliance towards meaningful action and continuous improvement. This section explains and explicitly refers to the international framework for tackling and reporting on modern slavery, notably the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (the 'Framework'). While voluntary, the Framework is considered as the foundation for responsible global business conduct and the Guidance includes direct reference in each of the above 6 sections.
The Guidance further encourages stakeholder cooperation both internally and externally and introduces the principle of continuous improvement. The latter explicitly encourages organisations to demonstrate year-on-year progress by moving from Level 1 to Level 2 disclosures, and by highlighting areas of change and improvement. This focus on continuous improvement reinforces the expectation that businesses adopt a trajectory of increasing ambition in their approach to addressing modern slavery risks.
Other key updates
Amongst others, the Guidance also covers the following clarifications and enhancements:
- There is expanded guidance on responsible recruitment, notably endorsing the Employer Pays Principle: that no worker should bear recruitment costs.
- The Guidance promotes modern slavery audits and inspections as a "powerful tool" to help uncover exploitation, while warning that abuses may not always be apparent and suggesting steps to improve audit quality.
- Remediation plays a key role in addressing modern slavery. Organisations are encouraged to consider their own responsibility in any violations, while holding suppliers and partners accountable. The Guidance links to the Walk Free Modern Slavery Response and Remedy Framework, which provides detailed advice and a six-step approach on remediation.
- The Guidance also clarifies that if an organisation fails to comply, the Secretary of State may bring civil proceedings in the High Court for an injunction requiring compliance. In the event of failure to comply with an injunction, the organisation will be in contempt of a court order which in turn is punishable with an unlimited fine.
- Organisations are explicitly encouraged to upload their MSS to the voluntary modern slavery statement registry.
Next steps
In light of the updated Guidance and case development, organisations should prioritise the following actions:
- Refresh modern slavery risk assessments by mapping supply chains and identifying high-risk areas, drawing on the updated Guidance and engaging internal stakeholders as well as external partners.
- Strengthen policies, procedures, and training by embedding modern slavery considerations into procurement and operational processes, supported by clear board-level accountability and tailored staff training.
- Establish measurable KPIs and track progress to shift from compliance-based reporting to outcome-driven disclosures, demonstrating continuous improvement and alignment with international human rights due diligence expectations.
As legal and regulatory frameworks on business and human rights and sustainability evolve, it is important that you seek advice now to navigate these developments to ensure your business remains compliant and appropriately manages risks.
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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.
