Contrary to government plans to cut the volume of admin for companies, the Office for Responsible Business Conduct has made a commitment to introduce a mandatory human rights due diligence regime reinforced by a new regulator. Let’s examine the proposed requirements and what the changes hope to solve
Early November saw the release of a statement by BIST secretary Jonathan Reynolds stating that following a review the current framework for reporting forced labour and related activities was no longer fit for purpose.
Under the auspices of the Office for Responsible Business Conduct (established in 2025) businesses of a certain size will have to identify, assess, and address risks of human rights abuses and labour exploitation. An as-yet unnamed new regulator will be empowered to investigate companies and supply chains, and have the authority to withdraw good and services from the market. This will only apply for UK businesses with a global turnover of £350 million, or non-UK companies with the same UK revenue figure. A centralised hub on the government website for responsible business conduct will also be set up, replacing the previous more ad hoc approach.
Why has this happened?
As with recent announcements to upgrade regulation of the likes of whistleblowing, the government is seeking to replace legislation which was thought to be cutting-edge when established, in this case the 2015 Modern Slavery Act. The evidence-based review found the current regime was ‘overly reliant on voluntary action and reporting measures’ which have not changed supply-chain practices in a meaningful way.
Furthermore, the passing of EU directives on corporate sustainability due diligence and forced labour has increased pressure on the UK government to fall into line with similar instruments. There are also echoes of the likes of CBAM with regard to UK procurement sovereignty in that businesses using exploited labour or questionable supply chains should gain an unfair competitive advantage.
The scale of the problem
According to Parliament’s Joint Committee on Human Rights Forced Labour Report of July 2025, goods totalling more than $US26 billion produced by unacceptable working practices were identified as having entered the UK market. Imports thought to be particularly liable to include forced labour were the production of solar panels, cotton, some foodstuffs including fish and critical minerals.
With regard to services, occupational areas are cited as particularly likely to feature forced labour (though by no means exclusively) are construction, agriculture, car washes, nail bars and hospitality. Whilst research shows approximately three-quarters (74%) of those entering the government’s National Referral Mechanism for tracking potential victims of modern slavery are non-UK nationals, a quarter are British citizens caught up in criminal enterprises such as county lines drug networks.
Mandatory expectations and expected penalties
Companies exceeding the turnover requirements will be expected to:
map operations, suppliers and labour chains beyond Tier 1(i.e. beyond direct suppliers)
identify elevated risks according to country, sector, commodity and recruitment model
prioritise most severe and likely impacts (i.e. not treating every supplier identically)
investigate warning signs and engaging affected workers / credible representatives
introduce prevention, mitigation, escalation and remediation processes
monitor the success of interventions
retain evidence of decision-making process
board-level material reporting
Once established, it is thought the new regulator will have a range remit, including search powers, the ability to withdraw goods from market and issue Notices of Underpayment as well as criminal enforcement.
Liam Byrne, Chair of the BIST Committee said of the reforms: “Now we need a clear timetable, a regulator with the resources to enforce the rules, and meaningful consequences for companies that fail to comply. Our promise is simple: we will hold ministers to their promise and shine a light on whether these reforms protect workers, give consumers confidence and deliver fair competition for responsible businesses.”
