On November 4, 2026, the UK Government published a statement announcing the outcome of its responsible business conduct review (“RBC Review”), which it launched in its Trade Strategy 2025 (for background, please refer to our previous blog post here).

The Government found in the RBC Review that the UK’s current framework for preventing forced labor is “fragmented and overly reliant on voluntary action and reporting measures.” It also acknowledged that, while the Modern Slavery Act 2015 (“MSA”) was world-leading when introduced, international standards and legislative practice have since moved on, “leaving the UK out-of-step with G7 partners and other major trading economies.”

In this post, we summarize the Government’s commitments in response to these findings and what they mean for companies, as well as ongoing reforms to the MSA.

Key commitments

The Government committed to three core measures:

  • Mandatory human rights due diligence: The Government will legislate to require in-scope businesses to identify, assess, and address risks of human rights abuses and labor exploitation in their own operations and supply chains. The regime will be risk-based and proportionate, aligned with the OECD Guidelines for Responsible Business Conduct and the UN Guiding Principles on Business and Human Rights. It will apply to UK businesses with a global turnover above £350 million, and non-UK businesses with UK-generated turnover above £350 million. This due diligence law will apply across the UK (including Northern Ireland) for services and in Great Britain (i.e., England, Scotland, and Wales) only for goods. (Rules around goods will be regulated differently in Northern Ireland, about which see below.)
  • Market-withdrawal powers for forced labor goods: Under the due diligence regime, a regulator will be empowered to investigate businesses suspected of placing goods made with forced labor on the Great Britain market and, where forced labor is identified and due diligence obligations have not been met, direct their withdrawal. In Northern Ireland, the EU Forced Labour Regulation (“FLR”) will apply under the Windsor Framework, which ensures that Northern Ireland generally aligns with EU law relating to the single market for goods. Further detail on the application of the FLR to Northern Ireland is set out in a Government policy paper, which was also published on November 4.
  • A centralized guidance hub: The Government will establish a responsible business conduct guidance hub on GOV.UK, bringing together guidance, tools, and templates in a single location.

Implications

The announcement marks a decisive move beyond the disclosure-based model of Section 54 of the MSA, which requires a transparency statement but imposes no due diligence obligations, toward legally required action backed by a regulator with enforcement powers. At the same time, the £350 million threshold is nearly ten times the MSA’s £36 million reporting threshold (though measured differently for non-UK businesses), confirming the Government’s focus on only the largest businesses with the capability and leverage to manage supply chain risks.

There is uncertainty about the details of any forthcoming regulation. In particular:

  • Timing: The statement does not explain when the Government will publish its detailed proposals, nor does it set out a legislative timetable. The Government has said it will work closely with stakeholders on design and implementation and introduce the measures “as soon as parliamentary time allows.”
  • Enforcement: Key ambiguities include the identity of the regulator(s) and any potential civil and/or criminal liability for violations of the law.

While many of the details are unclear, the UK Government’s apparent choice to combine both a human rights due diligence model and some kind of market ban/withdrawal mechanism suggests it may be attempting to bring some level of policy coherence between human rights due diligence and forced labor import ban regimes.

What about the planned MSA reform?

In addition to this new due diligence legislation, on June 30, 2026, the UK Government introduced proposed reforms to the MSA’s reporting regime in the Immigration and Asylum Bill, including mandatory disclosure categories and updated approval requirements. The reforms would also empower the Secretary of State to issue regulations that impose direct financial penalties for failure to comply with the modern slavery reporting regime without “reasonable excuse.”

Key takeaways

Companies might consider the following actions in light of the UK Government’s announcement:

  • Assess scope: Consider whether any entities are likely to meet the £350 million threshold for the due diligence law.
  • Track and consider policy engagement: Monitor legislative progress and opportunities for public consultation. There will likely be opportunities to engage with policy development and the legislative process. Companies might be particularly focused on seeking to maximize coherence between these incoming laws and existing, related regimes, including the UK MSA (and other modern slavery reporting laws), the EU Corporate Sustainability Due Diligence Directive (“CSDDD”), and EU FLR.
  • Review human rights due diligence processes: Given the indication that requirements will align with existing international standards, companies may consider beginning their review of human rights due diligence efforts (alongside preparations for CSDDD and FLR compliance, where applicable).

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Photo of Sarah Bishop Sarah Bishop

Sarah Bishop is a U.S. and UK-qualified lawyer with a broad compliance and investigations practice covering anti-corruption, anti-money laundering, UK and EU sanctions and export controls, and business and human rights.

Sarah helps multinational corporations develop and test the robustness of ethics and…

Sarah Bishop is a U.S. and UK-qualified lawyer with a broad compliance and investigations practice covering anti-corruption, anti-money laundering, UK and EU sanctions and export controls, and business and human rights.

Sarah helps multinational corporations develop and test the robustness of ethics and compliance programs, conduct risk assessments, conduct transactional and third party due diligence, support post-acquisition compliance integration projects, and deliver compliance training.

Sarah has extensive experience conducting internal and government-facing white collar investigations. She has conducted investigations involving allegations of bribery, money laundering, UK and EU export control and sanctions violations, fraud, human rights violations, and other forms of misconduct. She has handled matters before major international enforcement authorities and has been recognized in the Global Investigations Review Women in Investigations survey.

Sarah also assists clients in suspension and debarment matters before the World Bank and other international financial institutions.

Photo of Hannah Edmonds-Camara Hannah Edmonds-Camara

Hannah Edmonds-Camara is a founding member of the firm’s Business and Human Rights (BHR) practice and advises on a breadth of BHR and ESG issues. In particular, Hannah has deep experience advising on the development and implementation of global human rights and environmental…

Hannah Edmonds-Camara is a founding member of the firm’s Business and Human Rights (BHR) practice and advises on a breadth of BHR and ESG issues. In particular, Hannah has deep experience advising on the development and implementation of global human rights and environmental due diligence programmes, in response to the evolving, global regulatory landscape.

She advises on: compliance with ESG disclosure and due diligence requirements, including the EU’s CSRD and CSDDD; BHR-related investigations and remediation strategies; forced labour import ban regimes (e.g. the EU’s Forced Labour Regulation); responding to complaints raised through non-judicial grievance mechanisms (including OECD National Contact Points); ESG due diligence in an M&A context; global risk assessments; workplace culture reviews; design of project and issue-specific human rights frameworks and stakeholder engagement strategies; and policy engagement on BHR legislative files.

Photo of Daniel Feldman Daniel Feldman

Dan Feldman co-chairs the firm’s ESG and Business & Human Rights practices.

Drawing on his prior positions in government service spanning multiple Administrations, former Ambassador Dan Feldman’s practice focuses on environmental, social, and governance (ESG) counseling, business and human rights (BHR), global public…

Dan Feldman co-chairs the firm’s ESG and Business & Human Rights practices.

Drawing on his prior positions in government service spanning multiple Administrations, former Ambassador Dan Feldman’s practice focuses on environmental, social, and governance (ESG) counseling, business and human rights (BHR), global public policy, as well as broader international regulatory compliance. He is a member of the firm’s Global Problem Solving initiative.

As Chief of Staff and Counselor to Secretary John Kerry when he was appointed the first Special Presidential Envoy for Climate (SPEC) by President Biden, Dan helped drive the U.S. government’s international climate agenda, coordinating high level interagency policy-making, engaging with corporate stakeholders, and contributing to key bilateral and multilateral climate discussions, including the 2021 Leaders’ Summit on Climate and the landmark UN Conference of Parties (COP26) in Glasgow.

Previously, Dan served as deputy and then U.S. Special Representative for Afghanistan and Pakistan at the U.S. Department of State in the Obama Administration, as Director of Multilateral and Humanitarian Affairs at the National Security Council in the Clinton Administration, and as Counsel and Communications Adviser to the U.S. Senate Homeland Security and Governmental Affairs Committee. He also has served as a senior foreign policy and national security advisor to a number of Democratic presidential and Congressional campaigns.

Dan has extensive experience counseling multinational corporations on mitigating risk and maximizing opportunities in the development and implementation of their ESG and sustainability strategies, with a particular background in advising on BHR matters. He was one of the first attorneys in the U.S. to develop a practice in corporate social responsibility, and has been cited by Chambers for his BHR expertise. He assists clients in strategizing about their engagements with a range of key stakeholders, including Members of Congress, executive branch officials, foreign government officials and Embassy representatives, multilateral institutions, trade and industry associations, non-governmental organizations, opinion leaders, and journalists.

Photo of Elise Hartnett Elise Hartnett

Elise Hartnett advises clients on EU and U.S. regulatory and policy matters across environmental, social, and governance (ESG), business and human rights (BHR), international trade, and public policy.

Her practice includes providing clients with tailored advice on EU sustainability laws, global supply chain…

Elise Hartnett advises clients on EU and U.S. regulatory and policy matters across environmental, social, and governance (ESG), business and human rights (BHR), international trade, and public policy.

Her practice includes providing clients with tailored advice on EU sustainability laws, global supply chain due diligence, human rights and environmental policy development, evolving greenhouse gas and corporate climate action reporting requirements, and navigating compliance risks under EU and international legal obligations.

Elise also maintains an active pro bono practice focused on media freedom, human rights, and access to justice.

Photo of Paul Mertenskötter Paul Mertenskötter

Paul Mertenskötter advises companies, investors, and governments on regulatory sustainability, international trade, and public policy matters.

Paul has particular experience advising multinational companies on EU sustainability laws, including the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the Taxonomy…

Paul Mertenskötter advises companies, investors, and governments on regulatory sustainability, international trade, and public policy matters.

Paul has particular experience advising multinational companies on EU sustainability laws, including the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the Taxonomy Regulation, the Forced Labor Regulation, and the Carbon Border Adjustment Mechanism (CBAM). His practice also spans a wide range of climate change issues, including carbon offsets, accounting rules, and related international sustainability reporting frameworks such as the International Sustainability Standards Board (ISSB). Paul further advises clients on their strategic engagement with the rules of the World Trade Organization (WTO), free trade agreements, the Paris Agreement, and general public international law.

Prior to joining the firm, Paul was a Visiting Scholar at the WTO in Geneva, clerked at the International Court of Justice in The Hague, and was a Fellow at the Institute for International Law and Justice at NYU Law School.

Photo of Mary Mikhaeel Mary Mikhaeel

Mary Mikhaeel advises clients on developing sophisticated human rights compliance programs, based on human rights-focused hard law and international best practices. She works with clients to develop cutting edge solutions to forced labor supply chain risks, and also advises clients on a wide…

Mary Mikhaeel advises clients on developing sophisticated human rights compliance programs, based on human rights-focused hard law and international best practices. She works with clients to develop cutting edge solutions to forced labor supply chain risks, and also advises clients on a wide range of Customs matters.

As a member of Covington’s Business and Human Rights Practice Group, Mary supports companies in furthering their commitment to respecting human rights, as articulated in the UN Guiding Principles on Business and Human Rights (UNGPs). She has experience in assisting companies with building compliance programs, conducting human rights risk assessments and investigations, and developing human rights due diligence procedures.

Mary has extensive experience counseling clients across a wide range of industries on how to mitigate forced labor risks in the context of U.S. anti-forced labor laws, including the Uyghur Forced Labor Prevention Act (UFLPA) and Withhold Release Orders (WROs).

Mary is also a member of Covington’s customs practice and advises clients on a wide range of issues related to customs compliance and tariff mitigation strategies. She has experience advising clients on seeking ruling requests with Customs, assisting clients in submitting prior disclosures, and conducting internal compliance reviews.

Prior to law school, Mary was part of a research team that developed the Corporations and Human Rights Database, the first database created to monitor public allegations of business’ possible human rights violations. She also worked at the University of Minnesota’s Human Rights program on a variety of business and human rights matters, including issues related to a forced displacement case before the Inter-American Commission on Human Rights, and interned for a human rights non-government organization that holds consultative status with the United Nations.

Photo of Tom Plotkin Tom Plotkin

Tom Plotkin advises companies on a broad range of ESG and sustainability issues with a focus on social responsibility, including business and human rights, equity and civil rights, and external engagement and brand reputation.

As a member of Covington’s Business and Human Rights…

Tom Plotkin advises companies on a broad range of ESG and sustainability issues with a focus on social responsibility, including business and human rights, equity and civil rights, and external engagement and brand reputation.

As a member of Covington’s Business and Human Rights practice, Tom advises clients on all aspects of the corporate responsibility to respect human rights, including issues related to supply chain due diligence and responsible sourcing, downstream product use and human rights impacts, and strategies for integrating human rights oversight into broader compliance programs.

Tom is also a member of Covington’s Institutional Culture and Social Responsibility practice, where he assists companies in evaluating and managing the legal, business, and reputational risks associated with social impacts of business practices. Tom’s work in this area focuses on civil rights and diversity, equity, and inclusion.

As a member of Covington’s Sustainability practice, Tom draws on his social responsibility portfolio to assist companies in bridging internal practices and external engagement strategies. Tom assists with public ESG reporting, responding to shareholder ESG proposals, and external stakeholder engagement.

Tom is also a member of Covington’s Employment practice, where he advises on a range of domestic and international employment law issues.

Photo of Ian Redfearn Ian Redfearn

Ian Redfearn is special counsel in the compliance and investigations group of the London office.

He advises clients on their most complex and high-profile global compliance challenges, related transactional and litigation matters, and interactions with law enforcement authorities and regulators. He has deep…

Ian Redfearn is special counsel in the compliance and investigations group of the London office.

He advises clients on their most complex and high-profile global compliance challenges, related transactional and litigation matters, and interactions with law enforcement authorities and regulators. He has deep expertise in financial crime, political law, and modern slavery and human rights issues, and he often presents to clients and other outside audiences on these topics.  

His financial crime practice includes advice on the UK Bribery Act and other anti-corruption laws; the UK Proceeds of Crime Act and other anti-money laundering laws; the UK Terrorism Act and other counter-terrorist financing laws; and the failure to prevent fraud offence under the UK Economic Crime and Corporate Transparency Act.  

His political law practice includes advice on the lobbying registration requirements under the UK Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act and the EU Transparency Register; the UK Foreign Influence Registration Scheme, which has been established under the UK National Security Act; the ethics, conduct and transparency rules applicable to UK Government officials and parliamentarians; and the recruitment of former UK Government officials, including the Business Appointment Rules for Ministers and the Business Appointment Rules for Crown Servants.

His modern slavery and human rights practice includes advice on the transparency obligations and substantive offences under the UK Modern Slavery Act 2015, supply chain risk assessment and due diligence issues, and responses to actual or suspected modern slavery incidents.

He has worked for clients across many sectors, and he has significant international experience, including matters in Europe, Asia, the Middle East, and Africa. Much of his work involves matters that present significant reputational or political risks to clients, and Ian has experience collaborating with communications and public affairs teams on these issues.

Photo of Don Ridings Don Ridings

Don Ridings co-chairs Covington’s Anti-Corruption + Corporate Compliance practice, and the firm’s Business and Human Rights practice.

As co chair of the firm’s global Anti-Corruption + Corporate Compliance Practice Group, Don leads a team of compliance and investigation lawyers based in the U.S.…

Don Ridings co-chairs Covington’s Anti-Corruption + Corporate Compliance practice, and the firm’s Business and Human Rights practice.

As co chair of the firm’s global Anti-Corruption + Corporate Compliance Practice Group, Don leads a team of compliance and investigation lawyers based in the U.S., Europe, Asia, the Middle East, and Africa. He is a broad gauge compliance lawyer and for more than 10 years has also been recognized as a leading Foreign Corrupt Practices Act (FCPA) practitioner by Chambers Global and Chambers USA.

Don has advised clients in nearly every major industry on compliance issues arising under the FCPA and other compliance regimes. He has served as outside compliance counsel to dozens of Fortune 500 companies. Don advises clients on compliance risks in investment transactions, designs and helps implement compliance programs, and counsels clients on a broad range of anti-corruption and other compliance risks. For companies with mature compliance programs, he leads independent compliance program assessments that allow companies to benchmark their corporate compliance programs against peer companies and regulator expectations.

Don has led dozens of internal investigations arising from conduct in Africa, Asia, Europe, Latin America, the Middle East, and North America. He represents clients before the U.S. Department of Justice and Securities and Exchange Commission, where he has secured several non-public declinations.

As co-chair of the firm’s Business and Human Rights practice, Don advises clients on the evolving legal regimes related to the corporate responsibility to respect human rights. He counsels clients on issues relating to supply chain due diligence and responsible sourcing, human rights due diligence in investment transactions, integrating human rights elements into corporate compliance programs, NCP and other non-judicial dispute resolution processes, and responding to demands from NGOs, investors, regulators, and other stakeholders.

Photo of Emma Sawatzky Emma Sawatzky

Emma Sawatzky advises clients on a range of human rights and sustainability issues and supports them in evaluating and addressing potential legal, operational, and reputational risks across geographies and sectors.

As a member of Covington’s Business and Human Rights and Sustainability Practice Groups…

Emma Sawatzky advises clients on a range of human rights and sustainability issues and supports them in evaluating and addressing potential legal, operational, and reputational risks across geographies and sectors.

As a member of Covington’s Business and Human Rights and Sustainability Practice Groups, Emma advises clients on the rapidly evolving legal and enforcement landscape. Emma has experience with preparing clients for modern slavery and sustainability reporting; conducting gap assessments and developing action plans for sophisticated compliance programs; formulating human rights policies; conducting BHR-related investigations and implementing remediation strategies; advising on human rights-related OECD proceedings; developing responsible sourcing frameworks (including risk assessments, traceability exercises, and supplier engagement strategies); and advising on the potential human rights impacts of downstream product and service use. Emma also assists clients with white collar investigations.