The UK government has promised a new law to require companies to act to address, not just report, on human rights abuses and forced labor. After years of campaigning, this announcement marks a significant step towards mandatory human rights due diligence (mHRDD), a legal framework that requires companies to actively identify, prevent, mitigate, and account for actual and potential adverse human rights and environmental impacts across their operations and global supply chains.
The government has recognized the failure of relying heavily on corporate voluntary action and reporting to drive positive change. However, Freedom United joins advocates in concern at the absence of the inclusion of environmental harm, a known driver of human rights abuses, the narrow scope of companies this would apply to, and clarity on the scope of those abuses beyond labor exploitation.
From leader to laggard
The UK Modern Slavery Act 2015 was once seen as world-leading. The Act’s private-sector “transparency” clause required businesses with a turnover above £36 million (US $48 million) to report how they prevent modern slavery in their supply chains. However, even when companies did report, and there are no penalties for noncompliance, it rarely results in action. While international standards advanced, the UK had fallen behind.
The UK government’s Minister for Trade statement says the proposed changes will only apply to international businesses generating more than £350 million (US $470 million) in UK revenue, which is likely to cover just a couple thousand companies, even though under international law all businesses have a responsibility to ensure workers are not exploited.
Whilst focused on forced labor, the proposed reforms stop short of the EU’s approach, which bans goods made with forced labor outright. Instead the statement says a regulator will be given powers to pull goods made with forced labor from the Great Britain market—but only if the business has failed its due diligence duties.
New regulations, but not a ban
The Freedom United community pushed for this shift. Last year, more than 145,000 people—including Freedom United supporters—signed a joint petition calling on the UK to introduce mandatory human rights due diligence laws with meaningful penalties. Together with the Corporate Justice Coalition, we delivered those signatures to 10 Downing Street and the Department for Business and Trade. Polls also showed over 80% of the UK public backing stronger corporate accountability laws.
Still, the approach differs from the EU’s. The EU bans any product made with forced labor, whether or not the company did due diligence. The UK will remove goods only when forced labor is found and the business has also failed its due diligence duties.
As part of the reforms, Northern Ireland will also adapt the EU’s Forced Labour Regulation under the Windsor Framework. This means Great Britain and Northern Ireland will follow different rules.
Australia is under similar pressure. It plans to hold large companies criminally liable if they fail to stop modern slavery in their supply chains. But Walk Free warns that without mandatory due diligence and tighter controls on forced labor goods, Australia could become an easy destination for products that other economies restrict.
Celebrating step one
Our Executive Director, Joanna Ewart-James puts it:
“This welcome announcement must be celebrated for the government’s recognition that mandatory corporate action is what is needed to drive an end to exploitation and that voluntary action will always fall short. I call on the Freedom United community to continue powering our coalition partners to secure a law that has the power to result in meaningful change.”
A recent survey of 600 companies in the UK, Germany, France, Italy, the Netherlands and South Africa found that 96% said they found modern slavery or serious labor abuses in their supply chains last year. When abuse is this common, a rule that applies to so few companies and only pulls goods after a business fails its due diligence duties, cannot be meaningful for the estimated 27 million to be living today in conditions of forced labor in the private economy.
Freedom United is calling on governments worldwide to strengthen regulations on companies to hold them accountable for failing to prevent human rights and environmental abuses. Take action and demand laws that put people and environment before profits.
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