UK Modern Slavery Act amendment introduces mandatory due diligence and civil penalties

Westminster passes long-awaited amendments replacing the comply-or-explain statement regime with mandatory due diligence duties and financial penalties for non-reporting.

After years of criticism that Section 54 statements had become a box-ticking exercise, Parliament has approved amendments that require in-scope companies to actively identify, prevent and mitigate modern slavery risk in their operations and supply chains.

The reform introduces civil penalties for companies that fail to publish compliant statements and empowers the Anti-Slavery Commissioner to name non-compliant businesses. Procurement teams are being advised to map suppliers beyond tier one before the first reporting deadline.