The BBC recently released the findings of an investigation that revealed a restaurant chain and various supermarkets had failed to identify key warning signs of human slavery in, respectively, one of their branches and in their supply chains. The investigation found 16 victims of human trafficking and slavery worked long hours and had their wages taken by a gang based in the Czech Republic. The gang forced the victims to live in cramped accommodation in the UK and live off just a few pounds a week.
The investigation revealed that various red flags were missed. Many victims were registered under the same address with wages paid into accounts in other people’s names. Some were unable to speak English, meaning other individuals were filling out their applications and accompanying them in interviews as “translators”. They also had excessive overtime and worked extreme hours, all of which were missed by their employer. The exploitation only ended when victims contacted police in the Czech Republic, who informed the UK police.
These recent findings serve as a reminder to employers of their obligations to be alert to the signs of modern slavery.
It is important for businesses to undertake human rights due diligence of their supply chains to help prevent, identify and effectively respond to risks of modern slavery. Businesses should ensure that slavery is not present in any part of their supply chain. Taking steps to prevent modern slavery will help employers to avoid legal, financial and reputational risks. The key legislation in the UK is the Modern Slavery Act 2015 (MSA 2015). To comply with the MSA 2015, companies should adopt an Anti-Slavery and Human Trafficking policy that gives workers, contractors and other business partners guidance and sets out the measures taken.
The MSA 2015 imposes mandatory obligations for large businesses. Under section 54, an organisation must publish an annual modern slavery statement if all the following apply:
- it is a body corporate or a partnership, wherever incorporated or formed;
- it carries on a business, or part of a business, in the UK;
- it supplies goods or services; and
- it has an annual turnover of £36 million or more.
Whilst such large businesses are not obligated to guarantee that their entire supply chain is compliant, they must set out the actions they have taken to ensure it is free from slavery. It is also good practice to include in the statement details of the business’s due diligence processes and policies. Some practical recommendations are to provide the statement in English as well as any other languages that are relevant to the supply chain. It should be written in clear, simple language so that it is accessible to everyone, ensuring it covers all relevant points.
Many businesses will not be caught by the threshold for publishing a statement, but they can still choose to voluntarily produce a slavery and human trafficking statement.
Looking to the future, the Labour government has proposed to establish joint and several liability between companies in a supply chain. The intention is to encourage businesses to ensure due diligence is conducted and, in the event of exploitation, to ensure that accountability is taken through “name and shaming”. We will provide an update on the proposals once more details are published.
