Overview

This bill amends the Modern Slavery Act 2015 to strengthen transparency in supply chains and to criminalize the falsification of modern slavery and human trafficking statements. It introduces new offenses for companies that provide false or incomplete information and for those that continue to use suppliers failing to meet minimum transparency standards.

Description

The bill makes several key changes:

• Criminalizing False Statements: It creates a new offense for individuals responsible for a company's modern slavery statement if that statement contains false or incomplete information. Penalties include imprisonment and/or substantial fines (up to 4% of global turnover, capped at £20 million).
• Minimum Transparency Standards: It requires companies to publish and verify information about their supply chain's origin, arrange for external inspections and audits, and report on the use of overseas government employment agents. Failure to meet these standards can result in further penalties.
• Enforcement Powers: The Independent Anti-Slavery Commissioner is granted new powers to issue formal warnings to companies failing to meet transparency requirements. Continued non-compliance after a warning becomes a criminal offense.

Government Spending

The bill is not expected to significantly increase government spending. The main costs will likely relate to enforcement by existing agencies, such as the Independent Anti-Slavery Commissioner's office.

Groups Affected

• Companies: Businesses will be directly affected, needing to ensure their modern slavery statements are accurate and their supply chains meet new transparency standards. Failure to comply could lead to significant fines and legal repercussions.
• Directors and senior managers: Individuals responsible for preparing modern slavery statements face personal liability for false or incomplete information.
• Suppliers: Suppliers who fail to meet the new minimum standards of transparency risk losing contracts with major companies.
• Independent Anti-slavery Commissioner: The Commissioner's responsibilities and enforcement powers are expanded.

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