Guidance on complying with the Modern Slavery Act 2015 and the requirement to publish a slavery and human trafficking statement
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1 Guidance on complying with the Modern Slavery Act 2015 and the requirement to publish a slavery and human trafficking statement December 2016
2 The Modern Slavery Act 2015 ( the Act ) requires large commercial organisations carrying on business in the UK to publish a statement each year, setting out the action they have taken to ensure that their business and supply chains are slavery free. The Act applies to colleges meeting the criterion detailed in this guidance. This guidance should be read in conjunction with the template Anti-slavery and Human Trafficking Statement, which AoC has published to assist colleges comply with the requirements of the Act. Colleges are advised to tailor the template statement to reflect the specific circumstances and processes operating in their college. Colleges not falling within the scope of the Act may nevertheless wish to follow this guidance and issue a slavery and human trafficking statement to demonstrate their commitment to the cause. 1. Who does the Act apply to? The Home Office has specifically stated that the Act will apply to an entity that pursues educational aims if it: is incorporated or is a partnership; carries on business in the UK; supplies goods or services; and has a global turnover of 36 million. For the purposes of the Act, turnover means the amount derived from the provision of goods and services falling within the ordinary activities of the organisation or subsidiary undertaking, after deduction of: trade discounts value added tax any other taxes. Colleges should be able to ask their accountants for this information. Colleges which do not fall under this definition, but close to it, would be wise to treat themselves as covered. The 36 million threshold will also include the turnover of any subsidiaries, irrespective of where they are based in the world. 2. Prohibited types of conduct Slavery - the key element of slavery is the behaviour on the part of the offender as if he or she owned the person, which deprives the victim of their freedom. 1
3 Servitude this is the obligation to provide services that is imposed by the use of coercion and includes for example the obligation for an individual to live on another person s property and it being impossible for him or her to change their condition. Forced or Compulsory Labour involves coercion, either direct threats of violence or more subtle forms of compulsion. The key elements are that work is exacted from someone under the menace of any penalty and for which the person has not offered themselves voluntarily. Human trafficking a person arranges or facilitates the travel of another person with a view to that person being exploited. This can be an offence even where the victim consents to the travel for example, where someone is deceived by the promise of a better life. Committing any offence with the intent to commit human trafficking Clearly, it can be very difficult for an organisation to identify modern slavery, for example to determine whether poor working practices are severe enough to constitute modern slavery. Generally a college should ensure that their workers are not being exploited, that they are safe and that employment, health and safety and human rights laws are adhered to. If the college has any concerns that these practices are not being carried on internally, or within their supply chains then they should take action and cease to use the supplier. If any college identifies a specific case of modern slavery they must report this to the police. Education is not deemed a high risk sector. Colleges are, therefore, unlikely to fall foul of any of the above offences but the area where issues are most likely to arise is in relation to their supply chains (e.g. food, office supplies and stationery). 3. Other considerations (a) Supply chains Any high-risk countries in which its suppliers do business. High risk countries are generally places where protection against breaches of human rights is limited. For example, if the college gets uniforms or accessories made with their logo on in a high risk country, then enhanced 2
4 due diligence should be carried out when agreeing to work with that supplier; Whether colleges have in place any demands on their suppliers which could encourage those suppliers to engage in slavery. For instance, requiring unreasonably low-cost products or requiring excessively quick turn-around times; Whether to include in their standard terms with suppliers an assurance that fair policies are being enforced throughout the supply chain; Whether they have systems in place to identify and assess potential risk areas in the supply chains; Whether they need to improve their due diligence process for selecting suppliers. (b) Policies and staff training Colleges should also consider whether they have sufficient internal policies in place to address the risk of modern slavery and human trafficking and/or whether they need to train their staff on slavery. Stating that the college has policies in place and that they have carried out training demonstrates positive steps taken to eradicate slavery. 4. What do colleges need to do to comply with the Act? The primary requirement of the Act is simply to publish a slavery and human trafficking statement. This must include either: a statement of the steps the college has taken during the financial year to ensure that slavery and human trafficking is not taking place in any of its supply chains AND in any part of its own business; or a statement that the college has taken no such steps. Although the latter option is lawful this is certainly not an advisable option for any of the colleges to take. It would be extremely damaging to their reputation both internally and externally to publicly state that they have not taken any steps to tackle slavery and human trafficking. 3
5 (a) Content of the statement The statement must be written in simple English language to ensure that it is easily accessible but be provided in other languages that are relevant to the supply chain. The Act advises that a statement may (but does not have to) include the information set out below to show the steps the college has taken to address and remedy modern slavery: The college s structure, its business and its supply chains; Its policies in relation to slavery and human trafficking; Due diligence processes in relation to slavery and human trafficking in its business and supply chains; The areas where there is a risk of slavery and human trafficking taking place if any, and the steps it has taken to assess and manage that risk; Its effectiveness in ensuring that slavery and human trafficking is not taking place in its business or supply chains measured against such performance indicators as it deems appropriate; The training available to staff on slavery and human trafficking. The organisation does not need to guarantee that the entire supply chain is slavery free but instead it must set out the steps it has taken in relation to any part of the supply chain for example that they have asked their suppliers to confirm that they do not engage in slavery and human trafficking. (b) Approval of the statement Colleges which are incorporated must ensure that the Statement is approved by the board of directors; College set up as LLPs must ensure the Statement is approved by the members and signed by a designated member; College which are limited partnerships, or any other kind of partnership, must have the Statement signed by a general partner. 4
6 (c) Publication of the statement If the college has a website, the Statement must be published on the website and include a link to the statement in a prominent place on the homepage. If the college does not have a website, it must provide a copy of the Statement to anyone who requests one within 30 days of the college receiving the written request. 5. Further guidance for colleges The Home Office has published a very helpful guide, Transparency in Supply Chains: A practical guide. This provides detailed guidance on how organisations are expected to develop a slavery and human trafficking statement each year. The Business & Human Rights Resource Centre has established a Modern Slavery Act registry, where colleges can access statements produced by commercial organisations. The website of the Independent Anti-Slavery Commissioner has a wealth of resources on the Act and modern slavery. 5
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