On Monday 24 March 2025, the UK Government published updated statutory guidance for businesses on their supply chain obligations under the Modern Slavery Act 2015.[1]

In this update, we look at what this means for businesses and their obligations under section 54 of the Modern Slavery Act 2015 (also known as the transparency in supply chains provision).

What is the guidance?

The guidance is intended to help businesses understand their transparency in supply chains obligations, as set out in section 54 of the Modern Slavery Act 2015, and to promote good practice in tackling modern slavery. The guidance was first published in 2015, and the release of this updated guidance times with the 10-year anniversary of the Modern Slavery Act 2015.

Has the new guidance changed the reporting requirement in section 54?

No. The new guidance does not affect the transparency in supply chains provision from a legal compliance perspective.

A commercial organisation operating in the UK, with a global turnover of £36 million or more must still:

  1. produce a modern slavery statement each financial year which sets out the steps it has taken to manage modern slavery risks in its business and supply chains;
  2. get approval from its board of directors (or equivalent, if it is not a company);
  3. ensure the statement is signed by a director (or equivalent, if it is not a company);
  4. publish the statement on its website; and
  5. include a link to the statement on the homepage of the organisation's website.

Provided that the statement sets out the steps taken or clarifies that no steps have been taken, then from a legal perspective it does not matter specifically what the statement says or how it is written. Nor is there any legal requirement to conduct due diligence, or take any other similar action to prevent or address modern slavery.

The legal obligation to publish a modern slavery statement is not changed by the new guidance.

So, what is the impact of the new guidance?

Although it does not, strictly speaking, change the legal obligations for businesses, the new guidance raises the bar for what good looks like in tackling modern slavery and documenting it in a modern slavery statement. Businesses may be seen to not be doing enough to prevent and effectively respond to modern slavery, and face risk of reputational damage, if they do not implement the suggestions in the guidance.

The new guidance emphasises the "spirit of the legislation" and seeks to encourage businesses to do more than just meet the minimum legal requirements.

The previous guidance was more compliance focused – it confirmed who is in scope of the transparency in supply chains provision and what they must do. Suggestions for the content of a good modern slavery statement were confined to one of the last annexes and little was said about how to respond if modern slavery is uncovered.

In contrast, the new guidance shifts the focus to the meaningful and victim-centred anti-modern slavery actions that underpin a robust statement. It is nearly twice the length of the previous version, with detailed suggestions for both actions and disclosures front and centre. It also integrates key international standards. Information on the letter of the law (i.e., the 'what, who, how and when' of section 54) is now included in the last section of the guidance.

Why has the guidance been updated?

The new guidance has, no doubt, been published in an effort to help the UK catch up with other international regimes in relation to modern slavery.

The House of Lords Select Committee report on the Modern Slavery Act 2015 from the end of last year specifically recognised that modern slavery statements are of inconsistent quality, that it is difficult to hold companies accountable, and that the UK's transparency in supply chains provision has fallen behind.[2] The report recommended various changes to improve and strengthen section 54, many of which have already featured in lapsed amendment bills in recent years. It also specifically recommended due diligence obligations compatible with the growing number of international laws in this area.

In its response, the Government confirmed that it is "reviewing how best it can use legislative and non-legislative measures to tackle forced labour and increase transparency in global supply chains".[3]

Because legislative changes are very unlikely in the short term, the new guidance provides an interim policy tool for the Government to address this abhorrent crime.

What should businesses do?

Businesses that are keen to be visibly tackling modern slavery, and especially those with prominent brands (and, therefore, at highest risk of reputational damage should modern slavery arise in their supply chain), will want to review the guidance in detail. That might then lead to updating their modern slavery strategy, policies, training and the organisation's modern slavery statement.

Businesses that are suppliers to government and the public sector will also want to take note as it is likely that the new guidance will influence government procurement requirements.

However, the vast majority of UK businesses that are subject to section 54 of the Modern Slavery Act 2015, and are not significant suppliers to government, will focus on just meeting the minimum legal requirements. For those businesses, it is not necessary to review the guidance or do anything differently.

If you would like to find out more about the new guidance or the transparency in supply chains provision, or need help with drafting a modern slavery statement, please contact David Lowe, Michelle Nuvall, or a member of our Commercial team.

Footnotes:

[1] Slavery and human trafficking in supply chains: guidance for businesses
[2] The Modern Slavery Act 2015: becoming world-leading again
[3] Response to recommendations: Supply chains