VinciWorks’ modern slavery webinar 2022
Our modern slavery webinar on 26 October 2022 looked at the latest in modern slavery compliance. During the webinar, we received a number of questions about modern slavery which we have answered below.
There is also some additional information on the basics of modern slavery, tackling this issue as a business, and what to consider in the supply chain.
Modern slavery questions and answers
What would a compliant MSA statement look like?
There’s a difference between a compliant statement and a good or even great statement. It is possible to do the minimum and complete only a basic statement. Many companies are doing this and while compliant, it isn’t necessarily an example of a good statement. A better, or at least more comprehensive modern slavery statement will look at risk assessments, due diligence processes, how effective the steps the business has taken are, and will also look at training available. You can look at some other company’s statements and borrow ideas for your own efforts.
What else can be done to support modern slavery efforts?
Training is one of the key ways to support modern slavery efforts. We advised a business recently who have hundreds of employees who are going into commercial properties multiple times a day, but they only train their procurement staff on modern slavery. If they trained the staff who are regularly visiting sites on how to spot the signs of modern slavery, they would be able to highlight how they are taking action against modern slavery by having hundreds of eyes and ears out there and seeing what’s going on in these places and potentially reporting a suspicion.
How do you undertake ongoing monitoring of modern slavery?
Ongoing monitoring of suppliers can be incorporated into your existing ongoing checks and compliance efforts. If you’re speaking with suppliers about renewal for instance, ask them about their modern slavery efforts and about how they can cascade that down their supply chain. If you go and do a visit, see that those people are trained in modern slavery, and take the opportunity when it comes up to review contracts and make sure those businesses you’re working with are taking modern slavery compliance seriously.
What tangible efforts can smaller companies do?
Smaller companies, meaning those who are not required to publish a modern slavery statement, should think about making one. A modern slavery statement is an opportunity to bring together all the things you’re doing on modern slavery, to create a systematic approach, set metrics and targets and report on them. It can be a relatively straightforward process. Set a goal of having all staff training in modern slavery and report on progress. Or have a target of reviewing a certain number of supplier contracts for modern slavery per year, and report on how well that’s going. Smaller companies can make a big impact, and they should be thinking about how to do that to be honest, despite not having a compliance requirement to do so.
Should international companies have a single approach?
This is going to be up to the business, but it is worth considering the question in terms of procurement. If an international business has a single approach to procurement which all goes through one global centre, it might make more sense to have a single approach to modern slavery compliance, just as one would for bribery compliance for instance. But if each part of the business or each country does their own procurement, then it might be better to let those individual parts undertake modern slavery compliance. But there should be an overarching policy for an international business that sets the standards, the principles, and sets the tone from the top.
Who should be informed if there’s a suspected case of modern slavery, forced labour or human trafficking?
There’s a few different ways to report modern slavery. First of all there’s a UK modern slavery and exploitation helpline. The number is 08000 121 700 and the website is www.modernslaveryhelpline.org or call the police on 101. If it is an emergency, always call 999 or the local emergency number.
If you’re in another country, you will need to report to the local authorities. If those local authorities are untrustworthy though or nothing happens, you can still take action. First of all, you can avoid using that supplier. Also, you can report it to your industry body and make other people aware that certain suppliers are potentially involved in modern slavery. So no matter what, there’s what to do.
What is Modern Slavery?
This is a broad term for criminal activity and the abuse of human rights in relation to labour. It includes the offences of slavery, servitude, and forced or compulsory labour, as well as human trafficking. The Modern Slavery Act defines the following terms:
Slavery – deprivation of freedom and behaviour from the offender as if they own the victim.
Servitude – coercing an individual to provide services, including the obligation to live on another person’s property and being unable to change their condition.
Forced or compulsory labour – work or services obtained under the threat of a penalty or where the work has not been offered voluntarily.
Human trafficking – facilitating or arranging the travel of a person with the view to their exploitation, even if the travel is consented to.
The International Labour Organisation (ILO) estimates over 50 million people are victims of slavery or forced servitude around the world, accounting for around US$150 billion in illicit profits.
There are an estimated 100,000 potential victims of modern slavery in the UK and the cost of human trafficking and exploitation to the UK is around £890 million per year.
What is the Modern Slavery Act?
The Modern Slavery Act 2015 was brought in by the Coalition Government in 2013 under the then Home Secretary Theresa May. In July 2016 Prime Minister May announced the creation of a government task force on the issue, an assessment of the Police’s approach to modern slavery and human trafficking, and a £33.5 million boost for enforcement.
The Act consolidates existing offences of slavery and trafficking and introduces new civil penalties for those involved and provides mechanisms for seizure of assets. It also establishes an independent Anti-Slavery Commissioner as well as the reporting requirement for large companies.
Penalties
The duties of the Act are enforceable through a High Court injunction, and the Government may decide to ‘name and shame’ organisations which do not comply.
There have been nearly 300 Modern Slavery prosecutions as of July 2016 and a 40% rise in the number of victims referred for support. However, the Anti-Slavery Commissioner suggested crimes of this nature are still being underreported.
The first conviction under the Act came in January 2016. Mohammed Rafiq, owner of bed-making company Kozee Sleep was sentenced to 27 months imprisonment following the conviction of two Hungarian gangmasters who were supplying Rafiq’s factories with slave labour. Leeds Crown Court found that Rafiq knowingly employed trafficked men supplied by the gangmasters, and “went along with their exploitation as a slave workforce.”
Transparency in Supply Chains
Section 54 of the Act, the Transparency in Supply Chains (TISC) clause requires large companies operating in the UK to publish an annual ‘slavery and human trafficking statement.’
Who has to make a statement?
Commercial organisations supplying goods or services with a turnover in excess of £36 million are required to issue a statement. The £36 million threshold is what the Companies Act 2006 defines as a ‘large’ company. The Act covers organisations carrying out any part of their business in the UK and includes a partnership or a company. Where the business is a franchise model, only the turnover of the franchiser is included.
Group or subsidiary?
The requirement applies to each parent company and subsidiary that is covered by the Act, however companies in the same group can produce a single statement provided that it fully covers the steps each company has taken and is accessible on the website of each individual subsidiary.
What should a statement include?
The Act does not specify how the TISC statement should be structured, only that it detail all steps taken in the financial year to eradicate modern slavery and human trafficking in any part of the business, including supply chains. If steps have not been taken, then this must also be declared. The statement must be approved and signed by the board of directors, and the statement must be published on the organisations website.
While not proscribing the content, the Act suggests the following six areas to include in the statement:
- Information about the structure, business and supply chains of the company.
- The policies of the organisation relating to modern slavery and human trafficking.
- Due diligence in supply chains in relation to modern slavery and human trafficking.
- Any part of the organization where there may be a risk of modern slavery and steps taken to assess and mitigate those risks.
- Effectiveness in ensuring that slavery and human trafficking is not taking place in the business or supply chains, measured against appropriate performance indicators.
- Training available to staff on modern slavery and human trafficking.
Twelve questions to ask suppliers
- Does your company have a policy to prevent modern slavery, forced labour, human trafficking and other forms of labour exploitation?
- Does your company have grievance procedures in place to allow workers to bring concerns or work-related issues to the attention of management in an anonymous manner?
- Do you conduct independent audits of your operations and suppliers based on company standards that include clauses on modern slavery, forced labour, human trafficking and other forms of labour exploitation?
Note: Assess the capacity of the auditors to pick up violations. Set additional audit questions and ensure audits include workers’ views. Audits are not a replacement for site visits or continuous monitoring.
- Do all of your staff have legal working contracts with specified wages, working hours, conditions and holidays?
- Can your company ensure that personnel recruitment sources, including local and overseas labour brokers or recruitment agents operate ethically and are not complicit in labour abuses?
- Can you ensure that none of your workers are under bond, debt or other obligation to your company, personnel recruitment sources or any other party, in relation to their employment?
- Does your company ban children under 15 years of age from working?
Note: The basic minimum age for work should not be below 15, as children should remain in school until at least that age. No one under 18 may participate in hazardous work which is likely to jeopardise their safety.
- Are your workers free to join or form a trade union and participate in collective bargaining?
- Does your company have a formal policy in place to prevent harassment, discrimination and abuse?
- Do you have procedures in place to identify and manage risks relating to modern slavery, forced labour and human trafficking, including from personnel recruitment sources?
- Can you ensure that all suppliers, including personnel recruitment sources, comply with policies relating to modern slavery, forced labour and human trafficking?
- Do you provide training for management and employees with procurement responsibility to help them understand what modern slavery and other forms of labour exploitation are, and how to mitigate the risk of them occurring in your supply chain?
Bottom line: If the answer to any of these questions from a supplier is no, then further investigation is required.
VinciWorks modern slavery resources
Free Modern Slavery Statement Template
VinciWorks has created a free Modern Slavery Statement template that can easily be customised to suit your organisation.
Whistleblowing template
What should the modern slavery whistleblowing template include?
Your company’s whistleblowing policy should make the procedure for reporting slavery and human trafficking concerns clear and easy, as well as ensuring staff feel comfortable and safe to make a report. Here is a guideline of what should be included in the policy.
- Introduction to the Modern Slavery Act
- When to use the whistleblowing policy
- Procedure for responding to concerns raised
- The importance of confidentiality
- Protecting the whistleblower
Raise your Awareness
Target audience – General staff in low risk industries
Duration – 10 minutes
Course outcomes – Basic overview and common signs of slavery
Preventing Exploitation
Target audience – General staff in high risk industries
Duration – 20 minutes
Course outcomes – Comprehensive overview of the issue with red flags and common signs of slavery
Practical Steps for Procurement
Target audience – Procurement, HR and management
Duration – 40 minutes
Course outcomes – In-depth training on red flags when dealing with suppliers
Modern Slavery Knowledge Check
Target audience – All staff
Duration – 5 minutes
Course outcomes – A 10-question overview of modern slavery to test knowledge
