New UK inquiry into forced labour in supply chains: What do businesses need to know?

The UK House of Commons’ Joint Committee on Human Rights has launched a new inquiry into the nation’s framework for addressing forced labour in international supply chains. The inquiry aims to assess whether current laws effectively mitigate the risk of exposure to forced labour and whether they align with evolving international standards. The deadline for submitting evidence was on 14 February 2025.

Modern Slavery Act 2015

The UK’s primary legislation governing modern slavery in supply chains is the Modern Slavery Act 2015 (MSA). While the MSA was seen as a pioneering framework when it was introduced, a recent House of Lords report (October 2024) highlighted that the UK has fallen behind global best practices. The report recommended implementing mandatory modern slavery due diligence requirements to enhance corporate accountability.

In response, the UK Government acknowledged the need for improvement, particularly in strengthening the modern slavery statement registry and supporting voluntary due diligence initiatives. Additionally, the Government is exploring ways to enforce stricter penalties for non-compliance with the MSA.

What were the key areas under review?

The inquiry invited businesses and other stakeholders to provide insights into the effectiveness of the UK’s approach to forced labour. The key areas under review included:

  • Legislative framework: Assessing whether the MSA and other UK laws are effective in preventing the entry of goods linked to forced labour and how they compare with international compliance standards.
  • Enforcement & corporate responsibility: Evaluating the roles and powers of public bodies in preventing forced labour-linked goods from entering the UK market.
  • Consumer impact: Examining how forced labour exposure affects consumer attitudes and corporate profitability.
  • Procurement practices: Understanding the relationship between procurement strategies and the risk of forced labour in supply chains.
  • International comparisons: Reviewing legislative approaches in the EU and the US to identify potential improvements for the UK.

How does the UK compare to international standards?

Many global jurisdictions have implemented more stringent forced labour regulations than those set out in the MSA. Some key international legislative frameworks include:

  • EU Forced Labour Regulation: This law prohibits the sale or export of products linked to forced labour within the EU market.
  • Uyghur Forced Labor Prevention Act (UFLPA) – US: This Act bans the import of goods from China’s Xinjiang region unless businesses can provide clear evidence that they are not produced using forced labour. Canada and Mexico have also incorporated this measure under the United States-Mexico-Canada Agreement.
  • Mandatory due diligence laws: Countries such as Germany (Corporate Due Diligence in Supply Chains Act), France (Duty of Vigilance Law), Norway (Transparency Act), and the EU (Corporate Sustainability Due Diligence Directive) have introduced stricter due diligence requirements than the UK’s MSA, moving beyond transparency and into enforceable corporate responsibility.

What should your business be doing?

The Committee’s findings will highlight the key challenges businesses face in preventing forced labour within their supply chains. These insights will likely inform the UK Government’s next steps in strengthening its legislative framework.

For businesses operating internationally, this inquiry serves as a crucial reminder to proactively enhance their due diligence measures, ensuring compliance with both existing UK laws and emerging global best practices. As regulatory scrutiny increases, companies must stay ahead by implementing stronger risk assessment strategies and supply chain transparency initiatives.

How are you managing your GDPR compliance requirements?

GDPR added a significant compliance burden on DPOs and data processors. Data breaches must be reported to the authorities within 72 hours, each new data processing activity needs to be documented and Data Protection Impact Assessments (DPIA) must be carried out for processing that is likely to result in a high risk to individuals. Penalties for breaching GDPR can reach into the tens of millions of Euros.

GDPR added a significant compliance burden on DPOs and data processors. Data breaches must be reported to the authorities within 72 hours, each new data processing activity needs to be documented and Data Protection Impact Assessments (DPIA) must be carried out for processing that is likely to result in a high risk to individuals. Penalties for breaching GDPR can reach into the tens of millions of Euros.

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How are you managing your GDPR compliance requirements?

GDPR added a significant compliance burden on DPOs and data processors. Data breaches must be reported to the authorities within 72 hours, each new data processing activity needs to be documented and Data Protection Impact Assessments (DPIA) must be carried out for processing that is likely to result in a high risk to individuals. Penalties for breaching GDPR can reach into the tens of millions of Euros.

GDPR added a significant compliance burden on DPOs and data processors. Data breaches must be reported to the authorities within 72 hours, each new data processing activity needs to be documented and Data Protection Impact Assessments (DPIA) must be carried out for processing that is likely to result in a high risk to individuals. Penalties for breaching GDPR can reach into the tens of millions of Euros.

How are you managing your GDPR compliance requirements?

GDPR added a significant compliance burden on DPOs and data processors. Data breaches must be reported to the authorities within 72 hours, each new data processing activity needs to be documented and Data Protection Impact Assessments (DPIA) must be carried out for processing that is likely to result in a high risk to individuals. Penalties for breaching GDPR can reach into the tens of millions of Euros.

GDPR added a significant compliance burden on DPOs and data processors. Data breaches must be reported to the authorities within 72 hours, each new data processing activity needs to be documented and Data Protection Impact Assessments (DPIA) must be carried out for processing that is likely to result in a high risk to individuals. Penalties for breaching GDPR can reach into the tens of millions of Euros.