This clause requires the vendor to maintain a Modern Slavery Statement or equivalent disclosure documenting the vendor's efforts to identify and eliminate forced labor, child labor, and human trafficking from its supply chain and operations. Originating from the UK Modern Slavery Act 2015 and similar legislation in other countries (Australia, California, etc.), this clause obligates vendors to conduct due diligence, implement remediation measures, and provide transparency about their slavery and human trafficking risks. The vendor typically must certify that it complies with applicable modern slavery laws and may need to provide evidence of supplier audits, worker grievance mechanisms, and remediation efforts. This clause matters because supply chain slavery violations carry severe legal penalties, customer and investor pressure, and reputational consequences; it also reflects growing legal requirements and corporate responsibility standards.
Request that the vendor provide a current, detailed Modern Slavery Statement before contract execution, and verify it covers the specific jurisdictions where the vendor operates and sources materials. Establish clear audit rights allowing you to inspect the vendor's compliance documentation, supplier lists, and audit reports on reasonable notice. Define specific remediation timelines if slavery risks are identified, and include termination rights if the vendor fails to address substantiated violations within agreed periods. Require the vendor to flow down equivalent modern slavery obligations to its own subcontractors and suppliers, creating accountability throughout the supply chain. Document your own due diligence efforts to demonstrate good faith compliance if you are later subject to regulatory scrutiny.
Frequently Asked Questions
What does this clause mean in simple terms?
This clause requires the vendor to maintain a Modern Slavery Statement or equivalent disclosure documenting the vendor's efforts to identify and eliminate forced labor, child labor, and human trafficking from its supply chain and operations.
Why should I care about this clause?
Originating from the UK Modern Slavery Act 2015 and similar legislation in other countries (Australia, California, etc.), this clause obligates vendors to conduct due diligence, implement remediation measures, and provide transparency about their slavery and human trafficking risks.
What are my options?
The vendor typically must certify that it complies with applicable modern slavery laws and may need to provide evidence of supplier audits, worker grievance mechanisms, and remediation efforts.
How does this affect small businesses?
This clause matters because supply chain slavery violations carry severe legal penalties, customer and investor pressure, and reputational consequences; it also reflects growing legal requirements and corporate responsibility standards.