EHS glossary>Safety term

The Definition of Modern Slavery Statement

A modern slavery statement is a public report in which a company explains the steps it has taken to identify and address the risk of forced labor, human trafficking and other modern slavery in its operations and supply chains.

Plain-English definition
Real-world example
Modern Slavery Statement definition

Definition of a Modern Slavery Statement

A modern slavery statement is an annual public disclosure describing what a company has done to assess and address risks of modern slavery, including forced labor, debt bondage, human trafficking and child labor, in its business and supply chains. Laws in several countries require large companies to publish one.

Laws Requiring Modern Slavery Reporting

  • UK Modern Slavery Act 2015: applies to organizations carrying on business in the UK with annual turnover of £36 million or more.
  • Australia Modern Slavery Act 2018: applies to entities with annual consolidated revenue of at least A$100 million.
  • Canada's Fighting Against Forced Labour and Child Labour in Supply Chains Act: requires annual reports from certain entities starting in 2024.

What a Statement Usually Covers

  • The company's structure, operations and supply chains.
  • Policies on modern slavery and ethical sourcing.
  • Risk assessment and due diligence processes.
  • Actions taken and how effectiveness is measured.
  • Training provided to staff and suppliers.

Example of a Modern Slavery Statement

A facilities services company identified high risk among labor-hire cleaners and security staff. Its statement described how it checked recruitment fees, verified that workers held their own identity documents, included labor rights in contractor pre-qualification and set up a confidential hotline.

Frequently Asked Questions: Modern Slavery Statement

Who has to sign the statement?

Requirements vary, but statements usually need board approval and signature by a director.

What are red flags for forced labor?

Recruitment fees, withheld identity documents, unpaid wages, excessive overtime, restricted movement and unsafe living conditions.

How does safety relate to modern slavery?

Severe safety failures, such as locked exits or no protective equipment, often appear alongside labor exploitation.

Part of SafetyIQ's EHS glossary: plain-English definitions of workplace health and safety terms.

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