The Government Publishes Guidance for Businesses - 'Modern Slavery Reporting During the Coronavirus (COVID-19) pandemic'

Section 54 of the Modern Slavery Act 2015 requires commercial organisations to publish a Modern Slavery and Human Trafficking Statement each year. 

Any organisations that do business or part of their business in the UK;  who supply goods or services; and who, together with their global subsidiaries have an annual turnover equal to or greater than £36m are required to publish a statement. It does not matter where the business is incorporated for the purposes of the Act or where a partnership was formed. The Act applies to corporates or partnerships so long as they are carrying on a business or part of a business in the UK. 

Businesses Can Delay Publication of Statements for Up to 6 Months.

Businesses will be allowed to delay the publication of their modern slavery statement for up to 6 months without penalty, if as a result of COVID-19 pressures they are unable to prepare the report in time.  However, once published the statement should explain the reason for the delay, for example because of staff shortages and reduced capacity.

Businesses will inevitably undergo significant change during the pandemic.  Businesses are expected to monitor and review modern slavery policies and ensure that new risks are identified in light of changing working practices. Businesses may be working within new supply chains and with new providers of services.  

Businesses should keep their Board of Directors updated about emerging and heightened risks during the Pandemic.   

The Modern Slavery statement will need to include action taken during this period, having undertaken new risk assessments.  Businesses will need to identify which parts of their workforce may be particularly vulnerable during the pandemic. 

Workers maybe more vulnerable to modern slavery during the pandemic as operations and supply chains change. Individuals may not qualify for help from Government and may struggle to find work, making them vulnerable to modern slavery.  

Once identified, businesses must address new or increased risks in the supply chain.  Indeed these new issues may well take precedence over previously planned activities.  The guidance recognises that this may mean that businesses are not able to meet the goals set in earlier modern slavery statements.

Commentary

The Government have made various announcements about the Modern Slavery Act in recent months.  On 26th March 2020 the UK Government published its own modern slavery statement.  In the foreword written by the Prime Minister, he highlighted the determination to take active steps to drive modern slavery out of our supply chains.  Less than a month later in the midst of the pandemic the Government are yet again issuing guidance for businesses.  

Businesses would be wrong to assume that the pandemic offers an excuse for failing to update risk assessments and policies in place during this period of crisis. When modern slavery and human trafficking statements are published businesses will need to set out how they identified and monitored risks during this period of dramatic change.  

Whilst we appreciate that businesses have so many issues to deal with at this time it is important that modern slavery is not an issue which is overlooked.  

If you would like guidance to ensure your business remains compliant during the COVID-19 pandemic please do not hesitate to contact us.