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In the case of the recent conviction, the owner of UK bed-making business Kozee Sleep was convicted of conspiracy to traffic by Leeds Crown Court and sentenced to 27 months in prison. Mohammed Rafiq’s trial followed the conviction of two Hungarian gangmasters who were found guilty of supplying Kozee Sleep’s UK factories with slave labour. They had promised Hungarian nationals good wages and housing, but instead the workers found themselves held in squalid conditions, not allowed to travel and made to work up to 16 hours a day, seven days a week, for less than £2 per day. Kozee Sleep’s beds were being supplied to a number of leading high street retailers, who had set out their ethical trading requirements, which Kozee Sleep failed to meet.

According to the Anti-Slavery Commissioner, this is not an isolated incident and many other cases are expected to go to trial. Another, involving Lithuanian workers experiencing inhuman working and living conditions, involved a poultry farm which is in the supply chain of well-known brand Happy Egg.

In the introduction to the corporate guidelines for the Act, Home Secretary Theresa May says: “Modern slavery is a heinous crime that affects communities and individuals across the globe. Organisations with significant resources and purchasing power are in a unique and very strong position to influence global supply chains. It is not acceptable for organisations to ignore the issue because it is difficult or complex.”

If a business which is required to fails to produce a slavery and human trafficking statement for a particular financial year, the Secretary of State may seek an injunction through the High Court requiring them to comply. If they still do not comply, they will be in contempt of a court order, punishable by an unlimited fine.

Company law specialist, Chris Taylor of Huddersfield-based solicitors Eaton Smith said: “Following the introduction of the Modern Slavery Act 2015, there is going to be increasingly close attention on how global businesses are tackling potential slave labour in the supply chain. For the £36 million plus companies, there needs to be clear responsibility for compliance with the Act, with due diligence to identify potential risk of contravention of the Act in any part of the supply chain.”

Chris added: “At first glance, slavery may seem a million miles away from your business, but unfortunately that is not the case, and directors, and buyers in particular, should keep the topic in mind as they trade, whatever their company size.”

This is not legal advice; it is intended to provide information of general interest about current legal issues.