Responsible Business Conduct review | Government to legislate on human rights due diligence and forced labour
The Department for Business, Innovation, Science & Trade (BIST) has published a statement on the outcome of the Government’s Responsible Business Conduct (RBC) review.
Read the Written Ministerial Statement made by Secretary of State Jonathan Reynolds on Wednesday 4 November here.
Review findings
The full review has not been publicly shared at this stage. In the Government’s statement, the following key findings were referenced:
The UK’s current framework for preventing forced labour is fragmented and overly reliant on voluntary action and reporting measures.
While the Modern Slavery Act 2015 was world leading at the time of its introduction, the UK has become out of step with international standards and the legislative practice of key trading partners. While plans to strengthen the Modern Slavery Act through the Immigration and Asylum Bill are an important step, further action is needed to bring the UK in line with key partners.
The review recommendations have been carefully considered alongside the Government's commitments on economic growth, reducing administrative burdens, and maintaining the integrity of the UK internal market.
Proposed recommendations
As a result of the review findings, the Government has committed to an approach that is proportionate, targeted and implemented at pace, by taking forward a package of new policy measures:
Mandatory human rights due diligence legislation across the UK for services and in Great Britain for goods. The due diligence regime will apply to UK businesses with a global turnover of over £350 million (and non-UK businesses with a UK-generated turnover of over £350 million), and align with established international standards, including the OECD Guidelines and the UN Guiding Principles.
Application of the EU Forced Labour Regulation (EU FLR) in Northern Ireland under the Windsor Framework.
Powers to regulators to remove goods made with forced labour from the Great Britain market, where risk is identified and due diligence obligations have not been met. The regime will aim to deliver a “similar effect” to the EU FLR in practice.
Centralised responsible business conduct guidance hub on GOV.UK, bringing together guidance, tools and templates in a single location to support businesses with due diligence.
New measures will be introduced “as soon as parliamentary time allows.”
BRC Response
Responding to the outcome of the Government’s Responsible Business Conduct (RBC) review, Tom Ironside, Director of Policy at the BRC, said:
"The BRC and our members have long called for mandatory human rights and environmental due diligence, and we welcome the Government’s commitment to introduce a mandatory human rights due diligence regime."
“A proportionate, risk-based approach, aligned with international standards and backed by clear guidance, can strengthen supply chain protections and create a level playing field. We also welcome the signalled move toward a UK-wide approach to tackling forced labour, including immediate confirmation that the EU Forced Labour Regulation will apply in Northern Ireland.
“Government must now work closely with businesses to design a framework that is effective and workable. We are disappointed that environmental due diligence has been omitted, and the proposed £350 million turnover threshold needs careful consideration to ensure consistent obligations for all businesses exposed to similar risks.
“We look forward to working with Government on the details of these proposals, to provide certainty for businesses and deliver meaningful improvements for workers throughout global supply chains.”
The Government's announcement follows sustained efforts from leading UK retailers alongside other organisations across business, trade unions, and civil society that have called for mandatory human rights and environmental due diligence legislation. Read the latest open letter sent to the PM in October, signed by BRC and more than 30 organisations, here.
Next steps
The BRC will actively engage with Government on the review findings and recommendations, to understand the detailed proposals for how Government intends to take forward the recommended measures in legislation.
For more information on the measures, BRC members have been invited to the Office for Responsible Business Conduct (BIST) stakeholder briefing webinar: UK approach to Responsible Business Conduct, on Tuesday 10 November at 4pm. Register here.
Members are encouraged to share any initial reactions with Lou.
The upcoming BRC Human Rights Working Group on 24 November will provide the next opportunity to engage with BRC, members, and BIST officials on the review outcomes and discuss in detail what the proposed measures may mean for businesses. More information and register here (N.B. Draft agenda to be updated following this announcement).
