The global spread of Modern Slavery Act legislation

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 is the first of its kind in Europe and one of t he first in the world to specifically address slavery and trafficking in the 21st century. It not only affects businesses in the UK, but globally too, with UK supply chains extending across the world. A number of countries have now passed or are attempting to pass similar legislation of their own.

It’s incredibly important for companies to comply with Modern Slavery Act legislation, both in their home market and where their suppliers are located. Compliance also has many additional benefits including reduced costs for supply chain mapping and supplier audience management, as well as minimising the manual effort required to undertake these tasks. Brand protection is another huge benefit, with consumers becoming increasingly influenced by ethics and how the products they are buying are produced.

Mapping of the supply chain is the best way to achieve compliance. Supply chain management systems such as Segura allow retailers to fully map their extended supply network, guaranteeing the provenance of products and components and ensuring each of their suppliers is behaving in an ethical way.

July 2000: The UN Global Compact is the world's largest corporate sustainability initiative. It is a framework for businesses based on 10 key principles covering human rights, elimination of forced labour, the environment and a nti­corruption. Though voluntary, participating businesses are expected to implement these sustainability principles and take the required steps to support the UN’s goals.

December 2000: During the same year, the UN also passed the Protocol to Prevent, Suppress, and Punish Trafficking in Persons as part of the Convention against Transnational Organised Crime. It was the first global, legally binding treaty with an internationally agreed definition of trafficking in persons.

June 2014:  An additional legally binding protocol was added to the ILO Convention Concerning Forced or Compulsory Labour, 1930 (No. 29). This effectively modernised the convention to tackle forced labour worldwide and aims to advance prevention, protection and compensation measures, as well as to intensify efforts to eliminate contemporary forms of slavery.

September 2015: The UN adopted 17 Sustainable Development Goals, including a target of ending slavery and eradicating forced labour and human trafficking. These goals are part of a new sustainable development agenda, they are not legally binding, but countries are expected to take ownership and establish a national framework for achieving them.

September 2010: The California Transparency in Supply Chains Act applies to major manufacturers and retailers who do business in California and have worldwide annual revenues of over $100 million. It requires these businesses to publicly disclose what efforts they are making to eliminate forced labour and human trafficking from their supply chains.

September 2012:  Executive Order 13627 titled Strengthening Protections Against Trafficking in Persons in Federal Contracts, further enhances the responsibilities and duties of federal contractors and subcontractors to prevent human trafficking.

February 2015: The Trade Facilitation and Trade Enforcement Act closed an 86-year-old loophole and reauthorized the US Customs and Border Protection Agency to seize any imports suspected of being produced by forced labour.

July 2015: The Business Supply Chain Transparency on Trafficking and Slavery Act was introduced in-house and referred to Committee. If the act passes and becomes law, it would require corporations with an annual turnover of $100 million or more to publicly disclose the steps they are taking to prevent human trafficking, modern-day slavery and child labour in their products or services.

March 2015: The French parliament passed Private Bill 501. If the bill receives Presidential approval and becomes law, it will apply to French companies with over 5,000 employees if based in France or 10,000 employees globally. Companies which the bill applies to must prepare a ‘plan de vigilance’ which sets out how they plan to mitigate against the risks to human rights and fundamental freedoms, impact to health, serious impact to the environment and personal injury. The plan must be made public and included in the company report, which is to be published by 31st December 2016. The proposed penalty for non-compliance is a non-tax deductible fine of up to 10 million Euros.

March 1995: Australia’s Criminal Code includes anti-slavery and human trafficking offences. The Code carries strict penalties for offences both inside and outside of Australia, including 25 years imprisonment for slave trading, human trafficking or having involvement with a commercial transaction involving slavery and 12 years for conducting a business involving forced labour or causing another person into forced labour. Providing finance to a business involving servitude or forced labour also carries an automatic criminal liability.

February 2013: The Criminal Code was amended by The Crimes Legislation Amendment Act. The amendments are designed to expand the definition of exploitation to include a range of slavery-like practices and broaden the definition of exploitation under the Code to include a range of slavery-like practices, as well as introducing new offences and higher penalties.

November 2003: Brazil launched the ‘Dirty List’, revealing to the public hundreds of companies who knowingly use forced labour in their supply chains. The list was updated every six months and included the owner of the company, where the offence took place and the number of workers subjected to forced labour. Consequences of being a blacklisted employer were far reaching, with businesses blocked from receiving government loans and restrictions placed on sales of their products. The Dirty List was suspended in December 2014 in response to growing pressure from businesses.

2004: Brazil launches the National Pact for the Eradication of Slave Labour. This pact brings together civil organisations, businesses and the government to encourage companies to commit to the prevention and eradication of forced labour in their supply chains.

May 2012: Brazil’s constitution is amended to allow the government to take property from those who benefit from slave labor.

September 2015: Nepal bans human trafficking directly in the country's constitution. The constitution states that every person has the right to protected from trafficking and slavery and also ensures the right to compensation for survivors.

March 2016: The International Labour Organisation filed a complaint concerning non-observance of the Forced Labour Convention, 1930 (No. 29), and the Labour Inspection Convention, 1947 (No. 81) against Qatar. In response to this Qatar is proposing to introduce a new law to end the kafala system. Under the system, workers can only work for their sponsor and cannot change employer or leave the country without their employer’s approval. The ILO has asked to see proof these law changes are working, otherwise, a commission of inquiry could be launched in March 2017.

April 2015: A Responsible Business Initiative campaign has been proposed by the Swiss Coalition for Corporate Justice. It calls for an amendment to the Swiss constitution to require businesses to carry out due diligence in identifying both real and potential human rights issues within their company. The law would also attract civil liability, enabling those adversely affected to bring a claim for damages against Swiss companies who operate in Switzerland. The campaign will be considered by the Swiss government in October 2016.

The Dutch government pursues an active policy to promote sustainable garment production and prevent companies from abusing human rights either directly or in their supply chains. The proposed agreement to tackle human rights and environmental issues will include protection from forced and child labour, safe conditions for employees, achieving a living wage and reduction of excessively long working days. Bangladesh, India, Pakistan and Turkey will receive particular focus.

Industry, trade unions and civil society organisations will work collaboratively to identify supply chain issues and set objectives in an annual improvement plan which will be achievable within three to five years.  From year three parties will report individually on progress, that has been made. Funding is currently being sought and it is hoped the agreement will be signed in 2016.