UK Modern Slavery Act Compliance: Requirements & Best Practices

Under the UK Modern Slavery Act, compliance requirements have intensified as new data reveals the scale of exploitation. In 2024, UK authorities received 19,125 referrals for potential victims of modern slavery, a 13% increase over the prior year and the highest ever recorded. Children accounted for 31% of these cases.

The UK Modern Slavery Act mandates that all businesses operating in the United Kingdom with an annual turnover of £36 million or more actively identify and mitigate modern slavery within both their operations and global supply chains.

For businesses, failure to address these risks can lead to reputational harm, lost opportunities, legal penalties, and increased scrutiny from regulators and stakeholders. This blog presents the latest reporting requirements, essential compliance steps, and actionable measures to meet UK Modern Slavery Act compliance standards.

What is the UK Modern Slavery Act?

The UK Modern Slavery Act 2015 is a law that aims to stop slavery, forced labor, and human trafficking. It applies to businesses that operate in the UK and have an annual turnover of £36 million or more. These companies must publish a yearly modern slavery statement that explains what they’re doing to prevent slavery in their business and supply chains. 

This statement must be:

• Approved by the board of directors
• Published on the company’s website
• Released within six months of the end of each financial year

If no action has been taken, that must be explicitly stated in the disclosure.

Now that we have understood the basics about UK modern slavery act compliance, it’s essential to know precisely what duties the Act imposes and how to actively fulfill them.

Key Compliance Requirements Under the UK Modern Slavery Act

The central requirement is the publication of an annual modern slavery and human trafficking statement. This statement is both a legal and accountability tool that promotes transparency and compels businesses to actively address the risks of modern slavery within their operations and supply chains.

Preparation of a modern slavery statement typically involves close collaboration between internal and external stakeholders, such as: 

• Board of Directors: Must review and approve the statement to ensure leadership-level accountability.
• Legal and Compliance Teams: Oversee compliance, draft policies, and ensure adherence to statutory requirements.
• Procurement and Supply Chain Teams: Map, assess, and engage with suppliers to monitor risks and collect information.
• Human Resources: Organize staff training and awareness initiatives.
• External Auditors/Consultants: May be engaged for risk assessments, supplier audits, and best-practice guidance.
• Suppliers and Partners: Provide necessary information for due diligence and risk mapping.
• Other Stakeholders: Involvement may also include non-governmental organizations and industry groups supporting best practice.

By involving the right stakeholders across departments and supply chains, businesses can ensure that their modern slavery statement is more than a legal formality. It becomes a tool for driving accountability, improving visibility, and demonstrating a genuine commitment to ethical business practices.

Key Components of a Modern Slavery Statement

In a legal modern slavery statement, a business specifies the concrete actions taken to prevent modern slavery and human trafficking in its operations and supply chains. The UK government recommends that statements cover six specific core areas, offering transparency and a clear structure for assessing and improving anti-slavery due diligence throughout the organization.

A legally compliant modern slavery statement should address the following core areas:

1. Organization Structure and Supply Chains: Clearly describe the business model, countries where you operate, and supply chain routes.
2. Anti-Slavery Policies: State the company’s official written policies addressing anti-slavery and human trafficking, including codes of conduct, supplier codes, and enforcement protocols. Mention policy adoption dates and review cycles.
3. Due Diligence Processes: Detail the investigation steps taken to identify, assess, and address risks in both business operations and supply chains. Specify the number of audits or checks performed in the last year.
4. Risk Assessment and Management: Explain the approach to identifying and prioritizing risks, including the use of risk assessments tools, third-party data, and incident reporting systems. Highlight key findings or changes..
5. Key Performance Indicators (KPIs): List specific, measurable KPIs—such as the percentage of suppliers completing due diligence, the number of staff trained, and the number of remedial actions taken.
6. Staff Training: Detail the scale, content, and frequency of modern slavery training for employees, procurement staff, and key suppliers. Include the total number of people trained and the type of training delivered (e.g., online course, live workshops).

As organizations put significant effort into fulfilling the Act’s reporting and due diligence requirements, it’s equally important to recognize what’s at stake if these obligations are neglected.

Also Read: How to Write a Compliance Report: Step-by-Step Guide

Best Practices for Developing a UK Modern Slavery Act Compliance Statement

In the UK, modern slavery act compliance businesses must clearly detail the company’s anti-slavery policies, supply chain structure, risk assessments, due diligence, training, and key performance indicators, covering six specific content areas. This approach protects your organization from reputational and legal risks while fulfilling growing expectations for ethical and responsible business conduct.

Here are some best practices to ensure your statement is thorough, compliant, and meaningful:

1. Structuring the Statement Effectively

• Use a clear, logical structure that directly addresses all required areas, like company structure, anti-slavery policies, due diligence, risk assessment, performance indicators, and staff training.
• Use headings and sections to keep the statement organized and easy for stakeholders and regulators to navigate.
• State the financial year covered and when the board approved the statement.

2. Incorporating Transparency and Specific Examples

• Go beyond generic statements, provide detailed, factual accounts of steps taken, such as audits conducted, supplier engagement, risk mapping exercises, or staff training numbers.
• Highlight any challenges or areas for improvement, along with remedial actions and case studies when possible.
• Include quantitative data (e.g., “85% of high-risk suppliers audited in 2024”; “100% of staff completed awareness training”), and outline future goals.

3. Ensuring the Statement Is Signed and Approved by the Board

• The entire board of directors must review and formally approve the modern slavery statement each year.
• Clearly state the date of board approval and the name, title, and date of the director’s signature. A physical signature is not required, but these details must be included.
• For group entities, name each entity covered by the statement and clarify how board approval was obtained (individual boards, parent board, etc.).

4. Communication Strategies for Publishing the Statement

• Publish the statement visibly on your UK website’s homepage. It must be accessible to the public and stakeholders.
• Submit the statement to the UK government’s online registry to strengthen transparency and comply with emerging best practices.
• Keep past statements accessible to demonstrate ongoing improvement.
• If you don’t have a website, provide the statement on request within 30 days.
• Communicate internally and externally by circulating the statement with employees, investors, business partners, and suppliers to reinforce commitment.

Effective compliance is not just about policies; it relies on using the right technology and tools to provide transparency, efficiency, and accountability throughout your supply chain.

Consequences of Non-Compliance with the Modern Slavery Act

Businesses should not view compliance as a tick-box exercise. The risks of ignoring the Act are rising fast, and future reforms will bring direct financial and legal penalties for those who fall short.

Here are the key risks of non-compliance:

• High Court Injunctions: The UK government can take legal action to compel a company to publish a compliant modern slavery statement.
• Unlimited Fines: Ignoring a court order can lead to contempt of court, resulting in unlimited financial penalties.
• Reputational Damage: Poor or missing statements can trigger public criticism, negative press, and loss of consumer and investor trust.
• Limited Access to Contracts: Non-compliant businesses may be disqualified from public sector and large corporate tenders that require ethical sourcing practices.
• Future Financial Penalties: Planned reforms may introduce fixed or turnover-based fines for failure to report or incomplete disclosures.
• Director Accountability: New proposals suggest holding directors personally accountable for approved statements that fail legal or ethical standards.

The risks of not complying with the Modern Slavery Act are serious and growing. It’s no longer enough to just meet the basic requirements. To stay ahead, companies need better systems that make it easier to track, manage, and report their efforts. That’s where the right tools and technology can make a real difference.

Technology and Tools for The UK Modern Slavery Act Compliance

By using technology and digital tools for the UK modern slavery act compliance, businesses can automate, centralize, and professionalize their approach to managing modern slavery risks.

Here’s how it helps:

1. Centralizes Vendor Records & Automates Workflows

Internal audit and compliance management platforms centralize all supplier data, compliance documents (statements, anti-slavery policies, due diligence results), and audit trails into a single secure system. 

Automated workflows ensure tasks, such as supplier due diligence, document reviews, and board approvals, happen on schedule, with notifications and version control so nothing is missed. 

2. Risk Identification Through Data Collection & Analytics

Use of risk management software allows companies to conduct strong risk mapping and management by utilizing automated questionnaires, anonymous supplier feedback, and AI-based analytics. 

Tools scan your entire supply base for modern slavery risks, highlight high-risk suppliers, and generate actionable, analyst-validated recommendations for targeted action.

3. Enhance Supplier Engagement & Transparency

Vendor portals allow suppliers to upload compliance documents, track their status, and receive training, all in multiple languages to ensure global reach. 

Stakeholders can communicate directly, vendors can self-certify, and the risk status is always visible, improving collaboration and ownership in your supply chain.

4. Reliable Reporting & Continuous Monitoring

These platforms provide out-of-the-box templates, automated reporting for both internal audit and external publication, and intuitive dashboards that track legal KPIs in real time (e.g., percentage of suppliers covered by risk assessment, compliance rates). 

Modern slavery statements can be generated from verified data, supporting full regulatory and ethical transparency.

With strong technology in place, the groundwork is set. But effective compliance still comes with real challenges, and tackling them requires practical strategies and tailored solutions.

Also read: Internal Audit and Compliance Management Software Tools

Key Challenges to UK Modern Slavery Act Compliance

Organizations often struggle to meet the Modern Slavery Act’s requirements due to the complexity and lack of visibility in global supply chains. It is a major challenge that makes it difficult to trace, monitor, and assess modern slavery risks, especially among lower-tier suppliers and subcontractors.

Below are some common obstacles organizations face regarding compliance, along with the strategies to overcome these challenges: 

• Supply chain complexity and limited transparency: Many businesses operate with vast, global supply chains, making it difficult to trace every tier and identify modern slavery risks, especially among lower-tier suppliers and subcontractors.
• Data accuracy and supplier engagement: Obtaining reliable and current information on suppliers’ labor practices can be challenging.
• Limited time, manpower, and budget: Smaller teams or organizations without dedicated compliance staff often struggle with the demands of due diligence, audits, and ongoing reporting.
• Managing large volumes of compliance information: Organizing and storing compliance documentation can be overwhelming for companies with limited resources.
• Aligning with international standards: The UK government regularly updates guidance, and further reforms may bring mandatory reporting, stricter enforcement, and expanded due diligence obligations.

Here’s how you can overcome these challenges:

• Implement strong supplier mapping, use digital traceability tools, and prioritize risk-based auditing starting with high-risk regions or sectors.
• Establish standardized data collection protocols, facilitate regular supplier self-assessments, and develop direct communication to encourage accurate reporting.
• Use digital platforms to automate data gathering and reporting, prioritize higher-risk areas, and consider sharing tools or resources through industry collaborations to spread costs.
• Invest in compliance management systems that centralize document storage, automate reminders, and simplify workflows.
• Assign compliance leads to monitor regulatory developments, subscribe to official updates, and participate in industry groups for shared intelligence.

To put these strategies into action at scale, businesses need the right systems in place. That’s where VComply can help you.

How VComply Simplifies Compliance for the UK Modern Slavery Act

VComply is a comprehensive compliance and risk operating system (CROS). It is a cloud-based platform purpose-built to address these challenges, offering a suite of interconnected modules that automate, centralize, and simplify compliance management like those imposed by the UK Modern Slavery Act.

Each module solves a specific operational challenge. Let’s see how:

ComplianceOps for Managing Regulatory Tasks and Deadlines

• Automates recurring compliance requirements like SEC filings, policy attestations, and disclosure reviews
• Assigns responsibilities, sets deadlines, and tracks completion in real time
• Reduces the risk of missed tasks during high-pressure reporting cycles

RiskOps for Proactive Risk and Control Mapping

• Identifies and assesses compliance risks across business lines and third-party relationships
• Maps those risks directly to regulatory requirements and internal controls
• Tracks mitigation steps and maintains full documentation for audit readiness

PolicyOps for Centralized Policy Management

• Manages the full lifecycle of compliance policies, from drafting to distribution and periodic review
• Ensures staff always have access to the most up-to-date policies
• Tracks acknowledgments and automates version control

CaseOps for Incident and Breach Tracking

• Logs compliance breaches, disclosure exceptions, or policy violations in real time
• Automates escalation workflows based on severity and impact
• Maintains a structured audit trail for internal investigations and regulatory reporting

By digitalizing and automating the end-to-end compliance process, from risk mapping to reporting, VComply reduces manual errors, saves valuable staff time, and provides the clarity and structure needed to satisfy both internal leadership and external regulators. 

Schedule a free demo today to see how.

Wrapping Up

In the UK’s strict regulatory environment, complying with the UK modern slavery act is important to meet legal obligations and build ethical, transparent supply chains that protect your brand and stakeholders.

VComply offers a practical solution for streamlining compliance workflows, centralizing documentation, and supporting your team with clear, actionable insights.

Start simplifying your compliance journey. Get your 21-day free trial of VComply today!

FAQs

1. Do subsidiaries or foreign entities need to comply with the UK Modern Slavery Act if they do business in the UK?

Yes, any organization, regardless of where it is registered, that carries on business or part of a business in the UK and meets the annual turnover threshold (£36 million or more) is required to publish a modern slavery statement, including subsidiaries and foreign-based companies with UK operations.

2. Are businesses required to guarantee that their supply chains are free from modern slavery?

No, the law does not expect companies to guarantee that their entire supply chain is free from modern slavery. Instead, businesses are required to disclose the steps they are taking to prevent and address modern slavery risks, or to explicitly state if no steps have been taken, in their modern slavery statement.

3. Is there a mandatory template to follow for the modern slavery statement?

There is no government-mandated template, but statutory guidance recommends that the statement address six core areas, including organizational structure and supply chains, policies, due diligence processes, risk assessment, KPIs, and training. Companies are encouraged to use clear headings and cover these topics in detail, following best practice recommendations.

4. Can companies rely on supplier modern slavery statements as evidence of compliance?

Businesses can reference their suppliers’ modern slavery statements as part of their due diligence, but they remain responsible for assessing and managing the modern slavery risks within their own operations and supply chains. Simply relying on supplier statements is not sufficient for compliance.

5. How can employees or stakeholders report suspected modern slavery or non-compliance within an organization?

Companies are encouraged to have internal reporting channels, whistleblower mechanisms, or access to dedicated hotlines where employees and stakeholders can raise concerns confidentially about potential modern slavery risks or breaches of the Act. These procedures demonstrate proactive risk management and support a culture of transparency and accountability.