1 Disclosure by companies of measures to eradicate slavery, human trafficking,
forced labour and the worst forms of child labour

(1) Every company operating in the United Kingdom and having annual
worldwide gross receipts exceeding £100,000,000 shall disclose, as set forth in
5section 2, its efforts to eradicate slavery, human trafficking, forced labour and
the worst forms of child labour from its direct supply chains for tangible goods
and services offered for sale.

(2) In this Act “the worst forms of child labour” are those set out in Article 3 of the
International Labour Organisation’s Convention No. 182.

2 10Requirements of disclosure

(1) The disclosure described in section 1 shall be—

(a) set out in the company’s annual report, and

(b) posted on the company’s internet website,

and a conspicuous and easily understood link to the required information shall
15be placed on the business homepage.

(2) If the company does not have an internet website, consumers shall be provided
with the written disclosure within 30 days of the company receiving a written
request for the disclosure from a consumer.

(3) The disclosure described in section 1 shall disclose to what extent, if any, the
company does each of the following—

(a) Engages in verification of product supply chains to evaluate and
address risks of slavery, human trafficking, forced labour and the worst
5forms of child labour. The disclosure shall specify if the verification was
not conducted by a person independent of the organisation being
verified.

(b) Conducts audits of suppliers to evaluate supplier compliance with
company standards for slavery, human trafficking, forced labour and
10the worst forms of child labour in supply chains. The disclosure shall
specify if the verification was not an independent, unannounced audit.

(c) Requires direct suppliers to certify that materials incorporated into the
product comply with the laws regarding slavery, human trafficking,
forced labour and the worst forms of child labour of the country or
15countries in which they are doing business.

(d) Maintains internal accountability standards, supply chain
management and procurement systems, and procedures for employees
or contractors failing to meet company’s standards regarding slavery,
human trafficking, forced labour and the worst forms of child labour.
20The disclosure shall describe such standards and systems.

(e) Provides company employees and management who have direct
responsibility for supply chain management with training on slavery,
human trafficking, forced labour and the worst forms of child labour,
with particular respect to mitigating risks within the supply chains of
25products.

(f) Ensures that recruitment practices at all suppliers comply with the
company‘s standards for eliminating exploitative labour practices that
contribute to slavery, human trafficking, forced labour and the worst
forms of child labour.

3 30Protections and rights for victims of slavery, human trafficking, forced labour
and the worst forms of child labour

Companies which uncover slavery, human trafficking, forced labour and the
worst forms of child labour in their supply chains shall take action necessary
and appropriate to assist people who have been victims and shall report on
35that action in their annual reports.

4 Short title, commencement and extent

(1) This Act may be cited as the Transparency in UK Company Supply Chains
(Eradication of Slavery) Act 2012.

(2) This Act comes into force two months after Royal Assent.

(3) 40This Act extends to England and Wales, Northern Ireland and Scotland.