Modern Slavery Act: Annual statement requirement confirmed in consultation response
10 August 2015
The Government has published their response to the consultation which asked for views about what level of turnover a company should have to be required to publish an annual slavery and human trafficking statement.
The consultation asked respondents questions about two important areas: the level of turnover threshold which will define those businesses that will be required to comply with the provision and the content of statutory guidance.
The Government has decided to set the turnover threshold at £36m per year. This means that all commercial organisations carrying on business in the UK with a total turnover of £36m or more will be required to complete a slavery and trafficking statement for each financial year of the organisation.
Subject to parliamentary approval, legislation will come into force in October 2015. The statement will need to include what steps businesses have taken to eliminate modern slavery from their supply chains and own business. To give businesses sufficient time to prepare, transitional provisions will be developed so that statements are not required where a businesses’ financial year end is within close proximity to when the duty comes into force.
The response also confirms that statutory guidance will be produced and published to coincide with the duty coming into force in October 2015 and that the Government will work with stakeholders to ensure that the guidance is clear and, where possible, tailored to meet the differing needs of the many different sectors that businesses operate in.