The requirement on large commercial organisations to prepare a slavery and human trafficking statement for each financial year has recently been brought into force by the Modern Slavery Act 2015 (Commencement No 3 and Transitional Provision) Regulations 2015. Businesses supplying goods or services with a total turnover of £36 million must publish a statement setting out the steps the organisation has taken to ensure that slavery and human trafficking is not taking place (a) in any of its supply chains, and (b) in any part of its own business.
The Modern Slavery Act 2015 (Transparency in Supply Chains) Regulations 2015 have also been enacted, and clarify that the total turnover of a commercial organisation is (a) the turnover of that organisation and (b) the turnover of any of its subsidiary undertakings. “Turnover” is defined as the amount derived from the provision of goods and services falling within the ordinary activities of the commercial organisation or subsidiary undertaking, after the deduction of any trade discounts, VAT, and other taxes.
Transitional arrangements mean that the requirement to publish the statement will not apply to businesses with a current financial year ending before 31 March 2016. The government has produced statutory guidance on slavery and human trafficking statements, which encourages organisations to publish their statement within six months of their financial year end.
For further information, please see our previous article on this topic here. If you have any questions about how the requirement to prepare a slavery and human trafficking statement may affect your organisation, please contact Melanie Carter.
Posted on 09/11/2015 in Legal UpdatesBack to Knowledge