Modern Slavery Act update: What businesses need to know

The UK government has introduced significant updates to Section 54 of the Modern Slavery Act 2015, strengthening corporate responsibility in preventing modern slavery within supply chains. These changes, effective from March 2025, aim to enhance transparency, improve due diligence, and ensure stronger compliance from businesses.

What is modern slavery?

Modern slavery refers to the exploitation of people through force, fraud, or coercion. It encompasses various forms of exploitation, including forced labour, human trafficking, child labour, and conditions of slavery-like practices. It continues to affect millions of individuals across the globe, often hidden within supply chains and industries like agriculture, manufacturing, construction, and services.

Businesses are increasingly being scrutinised for their role in combating these abuses, especially in their supply chains. The Modern Slavery Act 2015 was introduced to compel companies to take steps to identify, prevent, and mitigate the risks of modern slavery within their operations and those of their suppliers. Organisations are required to publish an annual statement demonstrating the actions they have taken to address this issue.

High-profile modern slavery cases

Several high-profile cases have drawn global attention to modern slavery in corporate supply chains. These incidents have highlighted how even large, well-established organisations can fall victim to exploitation through poor oversight and a lack of transparency in their supply chains.

ASOS and Boohoo fashion scandals

Two of the biggest names in UK fashion, ASOS and Boohoo, have faced criticism for modern slavery-related issues within their supply chains. Investigations uncovered that some of their suppliers were involved in exploitative labour practices, including underpaid workers and unsafe working conditions. Both brands have since taken steps to address these issues, but the scandals have underscored the vulnerability of the garment industry to modern slavery and human trafficking.

These cases emphasise the ongoing challenges businesses face in ensuring ethical practices across their entire supply chain. They also underscore the importance of ensuring that corporate supply chain management is aligned with international standards for human rights protection.

Key changes for organisations under the updated Modern Slavery Act

The government’s recent changes to the Modern Slavery Act are designed to increase accountability and transparency in how businesses report on modern slavery risks. Some of the most significant updates include:

Stronger reporting standards

Organisations now face more stringent requirements for reporting on modern slavery and human trafficking in their supply chains. Businesses must report on:

• Their organisational structure and supply chains.
• Policies relating to modern slavery and human trafficking.
• The due diligence processes they employ to identify and mitigate risks.
• Their risk assessments and management procedures.
• The effectiveness of their actions in preventing modern slavery.
• The training available to staff and suppliers on identifying and addressing modern slavery.

Single reporting deadline

To simplify compliance, all businesses required to report under Section 54 of the Act must now submit their modern slavery statements by September 30th each year. This unified deadline aims to streamline the reporting process and increase transparency across the board.

Central government registry

A new central government-run registry has been established, where businesses are required to upload their modern slavery statements. This registry enhances the public accountability of organisations, allowing stakeholders, consumers, and regulators to easily access and review a company’s commitments and actions.

Financial penalties for non-compliance

The UK government has introduced financial penalties for businesses that fail to meet the new reporting requirements. Non-compliant companies may face fines, the severity of which will depend on the nature and extent of the breach. This update underscores the importance of compliance and proactive action in tackling modern slavery.

What this means for SafeContractor members?

At SafeContractor, we understand the increasing pressure on businesses to ensure ethical sourcing and comprehensive due diligence across their supply chains. These updates reflect a growing expectation that businesses take meaningful action to address modern slavery, beyond simply fulfilling compliance obligations.

Our SafeSupplier verification service can play a crucial role in helping businesses navigate these changes. By using SafeContractor’s supplier verification solutions, companies can assess and verify the ethical practices of their suppliers, ensuring they align with the latest standards. Our service helps identify potential risks within your supply chain, ensuring that your suppliers meet rigorous compliance standards designed to prevent modern slavery and human trafficking.

Risk-based, worker-centred due diligence

The updated guidance places a strong emphasis on identifying and mitigating risks to workers, not just the organisation itself. SafeContractor’s supplier verification process provides businesses with deeper insights into the practices of first-tier and beyond suppliers, helping to ensure that exploitation risks are mitigated further down the supply chain.

Clearer reporting standards

Organisations are now encouraged to report against Level 1 and Level 2 standards, with Level 2 demonstrating a higher level of maturity and continuous improvement. By using SafeContractor’s verification services, businesses can ensure they meet the required standards and showcase their commitment to combatting modern slavery through improved supply chain transparency and due diligence.

Increased expectations for collaboration and transparency

The updated framework calls for businesses to engage with a wider range of stakeholders, such as trade unions, NGOs, and other companies, to address systemic risks. SafeContractor’s platform offers the opportunity for collaboration with trusted partners to collectively tackle modern slavery, while also ensuring your suppliers are vetted for ethical practices.

Why modern slavery compliance matters for your business

The updated Modern Slavery Act makes it clear that businesses must move from minimum compliance to meaningful, sustained action. Companies must now take a proactive stance to ensure their supply chains are free from exploitation. This is not just about fulfilling legal obligations—it’s about demonstrating a genuine commitment to human rights, sustainability, and corporate social responsibility.

SafeContractor’s certification, along with our SafeSupplier Verification service, helps businesses stay compliant, reduce risk, and strengthen ethical practices within their supply chains. By adhering to SafeContractor’s rigorous standards, you can demonstrate to customers, stakeholders, and the public that you are committed to fighting modern slavery and operating responsibly.

Take action now

With these critical changes coming into effect, it’s more important than ever for businesses to ensure they are prepared for compliance. SafeContractor provides the tools, resources, and expertise to help you navigate these changes with confidence.