Modern slavery statement

A modern slavery statement, formally a slavery and human trafficking statement, is required by section 54 of the Modern Slavery Act 2015. It describes what an organisation did during its financial year to prevent forced labour, servitude and trafficking in its own operations and among its suppliers.

What it means for a small business

The legal duty applies to commercial organisations carrying on business in the UK with total turnover of £36 million or more, including the turnover of subsidiaries. In-scope statements must be approved by the board (or equivalent), signed by a director and published each year, with a prominent link on the website homepage.

Most small businesses are well below the threshold, so publishing a statement is voluntary. The question still comes up, because larger customers need to describe the risks in their supply chains and public tenders often ask about it. For a small supplier, a clear description of your policies and supplier checks is usually a complete answer.

Government guidance encourages statements to cover six areas:

• your structure, business and supply chains
• your policies
• due diligence on suppliers
• risk assessment
• how you measure effectiveness
• training

Any organisation, including those publishing voluntarily, can add its statement to the government’s modern slavery statement registry.

An example

A 25-person catering company supplies several large corporate offices. Its turnover is £3 million, so it has no legal duty. Its biggest client asks about modern slavery in its supplier questionnaire, so the company answers that it is below the threshold, explains that its code of conduct prohibits forced labour, and confirms it carries out right to work checks and asks its food suppliers to confirm compliance with the Act.

How ESG Now handles it

ESG Now does not write a modern slavery statement for you. The governance section records whether you have one, whether your supplier due diligence is formal, informal or not yet in place, how many suppliers you use and whether they are UK-based. Your private action plan may flag a statement or supplier checks as worth adding. Read our guide on whether small businesses need a modern slavery statement, or start your free report.