From big screen to boardroom – human trafficking has become an issue for business
By Angela Gorton of law firm Lupton Fawcett Denison Till
HUMAN trafficking, the tragic and sinister world that most of us only ever encounter in films such as Taken, has now become an issue for the boardroom.
From the plight of Syrian refugees desperate to find sanctity and safety in Western Europe to the failed private prosecution by former Leeds United managing director David Haigh, the issue of human trafficking has hit the headlines of late and brought the underground activity into the limelight.
For every trafficker caught, more wait in the wings. The Government has therefore turned to business to help prevent against such illegal activity and ensure traffickers are not rewarded for their efforts through the Modern Slavery Act 2015.
It is expected that from later this month, commercial organisations which supply goods and services and have a global turnover, including any subsidiary undertakings, of £36m per year are expected to be required to prepare a slavery and human trafficking statement each financial year. The statement does not have to be in any prescribed format or set length. The aim is to direct businesses’ attention to the problem and introduce means to avoid against it.
The statement must contain details of the steps the organisation has taken during the financial year to ensure that slavery and human trafficking is not taking place through any of its supply chains, and in any part of its own business. In the event that the organisation has taken no such steps this must be stated.
The statement has to be approved and signed by a director (if a company), member (if an LLP) or partner (if a partnership) and published on the business website with a prominent link from the home page. Businesses that do not have a website must supply a copy of the statement to anyone who requests it within 30 days. Conduct that amounts to slavery had it occurred in the UK, even if acceptable abroad, will also be considered an offence.
By making the information public, customers and suppliers can vote with their feet and businesses are made more accountable for their actions.
Guidance is due to be published imminently on further information that should be included within the statement and transitional provisions implemented for those organisations whose financial year end is due shortly after the legislation is implemented.
It is only to be expected that this legislation will gradually be applied to businesses of all sizes, perhaps sooner rather than later given the current migrant crisis. What is clear is that businesses will need to deal with the matter at a senior level and take the process seriously. Whilst an injunction can be sought against those that fail to provide or publish their statements, the reputational damage to the business of not complying and resulting adverse publicity may be of greater concern.
