As reported in our listed company update published in November 2015, companies will soon be required to publish an “annual slavery and human trafficking statement” under the Modern Slavery Act 2015 for each financial year. Is your organisation ready for the new disclosure requirements, which apply to companies with a year ending on or after 31 March 2016?

A reminder of the key points are listed below:

• The new rules apply to commercial organisations carrying on business in the UK (even if they are incorporated overseas), with a total worldwide annual turnover of £36million or more. There is no de minimis level of UK activity before the Act applies;
• The statement should include the steps the company has taken to ensure that slavery and human trafficking is not taking place in any of its supply chain;
• The statement must be approved by the Board and signed by a director and published on a company’s website, together with a link to it in a prominent place on the home page. Companies without a website must provide a copy of the statement within 30 days of receipt of a written request;
• If an organisation fails to comply with section 54, or reports that it has taken no steps to ensure that its business and supply chains are free of modern slavery, it would not only risk adverse stakeholder and media feedback and damage to the organisation’s reputation, but the Secretary of State may seek an injunction requiring the organisation to comply;
• Boards should therefore be looking at their supply chains now in preparation for the disclosure requirements next year. Companies are reminded that they need to consider suppliers throughout their supply chain, not just their immediate suppliers, and ensure that policies, procedures, training and the management of supplier contracts are reviewed now in preparation for the statement;
• There is no prescribed time limit to make the statement, but the guidance suggests that the statement is published as soon as possible after the financial year end, to ensure it is relevant and current. This is broadly interpreted as meaning within 6 months of the year end.

If you would like further information or more detailed assistance in preparing for this new disclosure regime and advice on the content of the statement, please feel free to contact me.