• Home
  • Legal Updates & Insights
  • The continuing iterative journey of the Modern Slavery Act in the UK: modern slavery and procurement – guidance for government suppliers

The continuing iterative journey of the Modern Slavery Act in the UK: modern slavery and procurement – guidance for government suppliers

Section 54 of the Modern Slavery Act 2015 (the Act) places an obligation on corporations supplying goods and services in the UK (and which have an annual turnover threshold of £36m or more) to publish an annual slavery and human trafficking statement.

Due to the ever increasing prominence of ESG (environmental, social and corporate governance), we are beginning to see the principles of the Act reflected in both procurement in the public sector and in commercial and government contracts. Further, the procurement regulations[1] have been amended to make certain modern slavery offences under the Act as grounds for exclusion of bidders from public procurements.

UK government – procurement policy note and guidance

In February 2023, the government issued an updated Procurement Policy Note entitled 'PPN 02/23 - Tackling Modern Slavery in Government Supply Chains' (the PPN' and accompanying guidance. The PPN applies to all central government departments, their executive agencies and non-departmental public bodies and NHS Organisations (in-scope organisations).

The new PPN and guidance sets out how to identify and manage modern slavery risks in both existing contracts and new procurement activity and advocates a risk-based approach to identifying and managing these risks. The guidance explains how to ensure greater supply chain visibility on procurements that are identified as 'high risk' of modern slavery occurring and sets out strengthened advice on how to exclude suppliers where there is sufficient evidence of modern slavery violations.

Although the guidance is aimed at the above in-scope organisations, the UK government has stated that the contents is relevant to all organisations within the public sector and by definition, private sector suppliers to the public sector.

Areas of activity

The guidance sets out four key areas of activity

 Activity

 Key actions

 1. Identifying and managing risks in new procurements

The guidance suggests that in-scope contracting authorities must:

  • review and amend their policies and procedures in line with the guidance

  • assess modern slavery risks in new procurements using the guidance

Note that the government has identified the following sectors as being at the highest risk of modern slavery:

1. construction

2. electronics manufacturing

3. textiles

4. health and social care

Further, the government has also identified 'high-risk' characteristics which include:

1. reliance on low skilled labour

2. high numbers of temporary, seasonal or agency workers

3. the use of physically demanding work

4. isolation of workers due to working within rural locations, being home based or in an unmonitored or unregulated environment

The guidance suggests that high-risk procurements should be subject to enhanced scrutiny, including an obligation on bidders to detail their supply chain members and submit self-declarations.

Further, modern slavery risks must be considered from pre-procurement planning, up to the contract awarding and contract management stage.

Whilst risk perception is an integral issue, the guidance emphasises the importance of "acting proportionally based upon the risks identified" and that contracting authorities must not impose any unnecessary burdens that would deter a wide diversity of suppliers, including small and medium sized enterprises (SMEs), voluntary, community and social enterprise (VCSE) suppliers and those owned by under-represented groups, from competing in public contracts.

 2. Assess existing contracts

The guidance suggests that in-scope contracting authorities must:

  • carry out a risk assessment on existing contracts

  • conduct supply chain mapping exercises for high or medium risk suppliersinvite suppliers to complete the Modern Slavery Assessment Tool (if appropriate)

 3. Taking action when victims of modern slavery are identified

  • the guidance includes advice on what to do if an in-scope contracting authority suspects modern slavery violations within their supply chain

  • contracted authorities are encouraged to work openly and proactively with suppliers to resolve issues and change working practices

  • the guidance states that contract termination should only be considered as a last resort

 4. Training

  • the guidance states that in-scope contracting authorities should raise awareness of modern slavery and human rights abuses amongst staff and deliver or make available appropriate training


Contracting authorities are to begin to take action to apply the PPN to existing contracts and to new procurement activity from 1 April 2023.

Looking ahead

Although the pace of legislative change is slow, due to the dynamic impact of ESG, we expect to see the principles of the modern slavery legislation increasingly reflected in due diligence exercises for both procurement and commercial contracts.

If you or your organisation require any advice about the points raised in this article, please contact Gareth Walls, Partner or any member of the A&L Goodbody Employment and Incentives Team.

With special thanks to Lauren Hudson, Trainee Solicitor, for her assistance in writing this article.

Date published: 31 March 2023

[1] The Public Contracts Regulations 2015, the Utilities Contracts Regulations 2016 and the Concession Contracts Regulations 2016.