A Global Overview of Modern slavery Legislation for Businesses
Understanding the Global Problem of Modern Slavery in Supply Chains
Modern slavery remains a hidden but pervasive problem in global supply chains. Despite growing awareness and legislation, millions of people are still trapped in forced labour, debt bondage, and suffer human trafficking across many industries, including textiles and fashion.
It’s critically important for businesses to comply with modern slavery and forced labour legislation in their home markets and across their supply chains. For businesses, modern slavery is not just a moral issue; it’s a compliance and reputational risk, which could hit the bottom line.
Compliance delivers a host of benefits, from cutting the costs associated with supply chain mapping and supplier onboarding to significantly reducing the manual effort involved in managing these processes. It also strengthens brand protection, a major advantage at a time when consumers are increasingly driven by ethical standards and the transparency behind how products are made.
This article explores the issue of modern slavery within global supply chains, outlines the key Modern Slavery Acts in force across countries such as the UK, France and Australia, and offers guidance on the steps your business must take to remain compliant. Finally, we look to the future and what’s next for modern slavery legislation in the EU.
What Is Modern Slavery in Supply Chains?
Modern slavery refers to situations where individuals are exploited and cannot refuse or leave due to threats, coercion, or deception. In complex, multi-tier global supply chains, these practices often go undetected, hidden deep among subcontractors and informal labour networks.
Common indicators include:- Excessive working hours or withheld wages
- Recruitment fees create debt bondage
- Restricted movement or confiscated passports
- Child or forced labour in sourcing raw materials
Why Must Businesses Must Act against Modern Slavery?
Consumers, investors and regulators increasingly expect transparency and ethical responsibility. Non-compliance with modern slavery legislation can lead to:
- Legal penalties and exclusion from contracts and markets
- Reputational damage and consumer backlash
- Operational disruption if unethical suppliers are exposed
How Can Segura Help Your Business Comply with Modern Slavery Legislation?
Key Modern Slavery Acts Across the World
Modern Slavery Act UK
The UK passed the Modern Slavery Act in March 2015 and helped to set the gold standard in the fight against contemporary slavery. The act was the first of its kind in Europe and one of the first in the world to address slavery and trafficking in the 21st century.
It requires any commercial organisation operating in the UK with an annual turnover of £36 million or more to publish an annual Modern Slavery Statement. This statement must outline the steps taken to ensure slavery and human trafficking are not taking place in its business or supply chains. The act not only affects businesses in the UK, but globally as well, with UK supply chains extending across the world.
Modern Slavery Act compliance involves:
- Conducting supply chain risk assessments
- Implementing ethical sourcing policies
- Training staff and suppliers
- Publicly reporting progress
What's changed?
The new framework encourages clearer, more detailed annual modern slavery statements, in six categories of disclosure.
- Reporting should have an enhanced focus on continuous improvement, stakeholder engagement and transparent reporting of any issues found.
- It introduces a tiered reporting model where certain types of disclosures are either "level 1" or "level 2". Level 1 is aimed at those organisations drafting their Annual Modern Slavery Statements for the first time, while Level 2 is for companies which are more familiar with the disclosure requirements.
- The framework urges companies to show evidence of due diligence and remediation, rather than simply stating no issues exist.
- It encourages businesses to use the Government's new registry of Modern Slavery statements.
While not changing the current mandatory requirements under the Act, the 2025 guidance signals a higher benchmark for compliance and accountability in tackling modern slavery across UK supply chains. For more information, the UK Government has published an updated guide for businesses here.
USA
The United States does not have a single Modern Slavery Act, but several federal and state laws collectively address forced labour, human trafficking, and supply chain transparency.
Key legislation includes Section 307 of the Tariff Act of 1930, which bans imports made with forced or prison labour, and the Uyghur Forced Labor Prevention Act (2021), which restricts goods linked to forced labour in China’s Xinjiang region. The Trafficking Victims Protection Act (2000) underpins U.S. anti-trafficking policy, while the Federal Acquisition Regulation (FAR) requires government contractors to implement anti-slavery compliance plans.
At state level, the California Transparency in Supply Chains Act (2010) obliges large retailers and manufacturers to disclose their efforts to eradicate slavery from their supply chains.
Together, these laws form one of the world’s strongest frameworks for tackling forced labour, with a particular emphasis on import restrictions, due diligence, and corporate accountability.
France - Duty of Vigilance Law
France took a broad approach with its Corporate Duty of Vigilance Law, passed in 2017.
This legislation applies to companies with over 5,000 employees in France or 10,000 globally, requiring them to develop, publish, and implement a “plan de vigilance.”
The plan must identify and prevent human rights abuses, including modern slavery, environmental damage, and health and safety violations. Non-compliance can result in fines and civil liability claims.
Germany - Supply Chain Due Diligence Act (SCDDA)
The SCDDA applies to companies with more than 1,000 employees in Germany (from 2024.) It requires businesses to carry out risk assessments for human rights & environmental risks. The Act requires companies to take reasonable measures to prevent forced labour and slavery throughout their entire supply chain, not just their direct operations. Companies must implement grievance mechanisms and regularly report on their compliance.
Australia - Modern Slavery Act 2018
Australia introduced its Modern Slavery Act 2018, requiring businesses with annual consolidated revenue of AUD $100 million or more to submit annual Modern Slavery Statements to a public register.
The Act encourages transparency and comparability across companies and sectors. Australian entities and foreign businesses operating in Australia must outline:
- Risks of modern slavery in their operations and supply chains
- Actions taken to assess and address those risks
- Methods for measuring effectiveness
Transparency Act - Norway
The Transparency Act came into force on 1 July 2022. It requires large Norwegian companies (and foreign companies doing business in Norway) to conduct due diligence to identify actual and potential harmful impacts on human rights and working conditions (including forced labour) in their supply chains, and what they do about it. It mandates these companies to publish an annual report on their findings and measures, and to respond to information requests from the public about these activities.
Fighting Against Forced Labour and Child Labour in Supply Chains Act - Canada
Enacted on January 1, 2024, the Fighting Against Forced Labour and Child Labour in Supply Chains Act mandates that large companies producing, selling, distributing, or importing goods in Canada report annually on their efforts to prevent and address forced and child labour within their supply chains. Failure to comply with the reporting requirements may result in penalties, including fines up to $250,000.
Other Noteworthy Efforts In the Fight Against Modern Slavery In Supply Chains
Brazil
Brazil launched the "Dirty List" in 2003, which publicly names employers who use forced labour, revealing to the public hundreds of companies that knowingly use forced labour in their supply chains. The list is updated approximately every six months, with recent updates publicly naming over 150 employers. Inclusion can cause significant financial and reputational harm, as banks and companies use it for risk management.
Nepal
In September 2015, Nepal banned human trafficking directly in the country's constitution. The constitution states that every person has the right to be protected from trafficking and slavery, and also ensures the right to compensation for survivors.
Switzerland
Switzerland has implemented due diligence provisions concerning conflict minerals and child labour. This regulation requires Swiss-based companies to address risks in their supply chains concerning conflict minerals from high-risk areas and goods or services suspected of being produced using child labour.
The Netherlands
The Child Labour Due Diligence Law came into effect in the Netherlands on January 1, 2020 and applies to all companies that sell goods or services to Dutch consumers. Businesses must investigate whether child labour occurs in their supply chains and draw up action plans if risks are found. Penalties apply for non-compliance. The law is focused more narrowly on child labour, but it shows how legislation can target specific modern slavery risks.
How Can Businesses Ensure Compliance with Modern Slavery Legislation?
To meet Modern Slavery Act requirements and demonstrate ethical leadership, businesses should:
- Map and monitor suppliers across all tiers using digital supply chain mapping tools.
- Develop a clear modern slavery policy and integrate it into supplier contracts.
- Provide training for procurement and compliance teams.
- Conduct regular audits and supplier assessments.
- Report publicly and transparently on actions and progress.
The Global Fight against Modern slavery - What’s Next?
Modern slavery legislation will continue to expand, with the EU set to implement the EU Corporate Sustainability Due Diligence Directive (CSDDD) to standardise reporting standards across EU countries.
The CSDDD entered into force on July 25, 2024. The directive must first be transposed into the national laws of EU Member States by July 26, 2027. The first companies will begin complying one year later, on July 26, 2028. Compliance will take a staggered approach, with the biggest companies expected to comply first (and full application on 26 July 2030).
The CSDDD will introduce mandatory due diligence obligations for companies to identify, prevent, and mitigate adverse human rights and environmental impacts across their value chains. While the Directive is now in force, its detailed application will depend on national transposition and may continue to evolve as Member States implement it.
Modern Slavery Compliance Is More Than JUST a Tick box exercise
In summary, compliance with global modern slavery legislation is a core component of ethical and sustainable business. Beyond meeting legal requirements, taking a proactive approach helps organisations mitigate serious commercial risks while unlocking valuable operational and competitive advantages.
By investing in transparency and adopting proactive risk-management practices, businesses can protect their brand, build consumer trust, and most importantly, contribute to the eradication of modern slavery in global supply chains.
