The purpose of a Modern Slavery Statement is to set out what steps a company has taken to prevent modern slavery and human trafficking in its business and supply chains. This area of law is governed by section 54 of the Modern Slavery Act 2015 (the “MSA"). Section 54 of the MSA requires a commercial organisation to prepare a slavery and human trafficking statement for each financial year.

In order to satisfy the ‘commercial organisation' test, a company must:

a)       supply goods or services; and

b)      have a total turnover of not less than £36 million. (This aligns with the definition of large businesses in the Companies Act 2006.)

If your organisation meets these requirements, it has a statutory obligation to produce a Modern Slavery Statement. Failure to comply could result in the Secretary of State obtaining an injunction against your organisation to compel compliance with the MSA.

Even if your organisation does not meet the above requirements, it may nevertheless be prudent to prepare a modern slavery statement/policy. This is in line with government guidance which encourages all businesses to develop an appropriate and effective response to modern slavery. From a marketing perspective, it would send a positive message to your company’s customers, suppliers and employees by demonstrating your company’s commitment to safeguarding against any modern slavery practices.