Modern Slavery Act 2015
UK statute consolidating modern slavery offences; section 54 requires above-£36M organisations to publish annual statements.
Definition
The Modern Slavery Act 2015 is the UK statute consolidating modern slavery offences and introducing the statutory requirement for above-threshold organisations to publish annual transparency statements. The Act covers slavery, servitude, forced or compulsory labour, and human trafficking. Section 54 of the Act requires UK organisations with annual turnover above £36 million to publish a Modern Slavery Statement describing steps taken to prevent modern slavery in operations and supply chains. Convictions under the Act are mandatory exclusion grounds in public procurement.
How it works in practice
The Act covers four substantive areas. First, the criminal offences of slavery, servitude, forced labour, and human trafficking with penalties up to life imprisonment. Second, slavery and trafficking reparation orders. Second, slavery and trafficking prevention orders restricting offender activity. Third, support for victims including child trafficking advocates. Fourth, the section 54 transparency in supply chains requirement. For procurement the practical implications are at the Selection Questionnaire stage: bidders self-declare any modern slavery convictions (mandatory exclusion ground); confirm publication of a Modern Slavery Statement if applicable (turnover above £36M); evidence supply chain due diligence approach. Many public sector buyers ask Modern Slavery topic questions even where the bidder is below the £36M threshold, treating it as good-practice assessment. The Act has been under consultation for substantive reform since 2020: expected changes include extending statement requirement to lower-turnover organisations (likely £18M threshold), mandating specific statement content sections, and stronger penalties for non-publication. Suppliers should track the reform consultation; the changes will materially affect SME compliance overhead. Cabinet Office, Home Office, and the Independent Anti-Slavery Commissioner publish guidance on supply chain due diligence and statement quality.
Common questions
What is the section 54 turnover threshold?
£36 million total annual turnover for the UK organisation (including subsidiaries). Organisations above the threshold must publish an annual Modern Slavery Statement on their website. Below-threshold organisations are not statutorily required to publish, but many do so as good practice and many public sector buyers request a statement regardless.
Is the £36M threshold likely to change?
Possibly. Government consultation in 2020 considered extending the requirement to organisations above £18M turnover. The reform process has been delayed but is expected to land in due course. Suppliers between £18M and £36M turnover should consider preparing a statement voluntarily; they will likely need one shortly.
Are modern slavery convictions an exclusion ground in public procurement?
Yes, convictions for the substantive Modern Slavery Act offences are mandatory exclusion grounds under PCR 2015 reg 57 and continue under PA 2023. A conviction of a director or controlling person can trigger exclusion at the company level. Sustained period of mandatory exclusion (typically 5 years from conviction).