Source · Select Committees · Business and Trade Committee
Recommendation 15
15
Deferred
Review Modern Slavery Act Section 54, mandating reporting and introducing penalties for non-disclosure.
Recommendation
The Government must review the Modern Slavery Act 2015 and make changes to Section 54 to improve transparency. In particular the Government should: a. Change provision 54(5) such that the areas of reporting in modern slavery statements become mandatory. b. Remove the provision in which companies are allowed to claim to have taken ‘no steps’ to address modern slavery. c. Introduce penalties and name and shame scheme for companies not disclosing Modern Slavery statements. d. Consider the creation of failure to prevent offences like those set out in the Economic Crime and Corporate Transparency Act 2023. (Recommendation, Paragraph 80)
Government Response Summary
The government is considering strengthening Section 54 of the Modern Slavery Act, including reporting requirements and penalties, and will set out next steps in due course, noting that significant reform will take time. Interim updated guidance has been published.
Government Response
Deferred
HM Government
Deferred
Section 54 of the Modern Slavery Act 2015 established the UK as the first country in the world to require businesses to report on how they are tackling modern slavery in their organisation and supply chains. Section 54 has helped bring greater awareness of modern slavery in boardrooms across the country, but it is clear that our approach needs to evolve. The Government is considering how it can strengthen the Section 54 regime, including reporting requirements, the turnover threshold and penalties for non-compliance, and will set out the next steps more broadly in due course. Significant long-term reform will take time, and in the interim the Home Office has recently published updated Transparency in Supply Chains statutory guidance.3 This new guidance is more comprehensive, practical and ambitious – calling on businesses to go further and faster. This will support businesses to produce high quality statements, which are underpinned by effective measures to prevent and effectively respond to modern slavery. The Home Office worked with a wide group of stakeholders from business, academia and civil society to ensure the guidance reflects current best practice.