The UK government announced a new commitment to introduce a new mandatory human rights due diligence regime, setting requirements for large businesses to monitor and address human rights and forced labor risks across their operations and supply chains.

The new legislation is intended to apply to UK companies with over £350 million (USD$470 million) revenues, as well as non-UK businesses with a UK-generated revenue greater than £350 million, with a focus on the largest businesses “with the capability and leverage to manage these risks within their supply chains.”

The plans for the new law were announced by Jonathan Reynolds, Secretary of State for Business, Innovation, Science and Trade, following a review of the UK’s approach to promoting Responsible Business Conduct, which he said “found the UK’s current framework for preventing forced labour to be fragmented and overly reliant on voluntary action and reporting measures,” placing the UK “out-of-step” with other major economies.

The announcement also follows the imposition of new U.S. tariffs on UK imports earlier this year, after the US Trade Representative listed the UK as one of the U.S.’ trading partners that have failed to effectively enforce a ban on the importation of goods produced with forced labor. While the UK’s review predates the U.S. tariffs, the government’s announcement highlighted the need to bring its rules into line with major trading partners.

According to Reynolds, under the new due diligence regime, companies will be required to identify, assess and address risks of human rights abuses and labor exploitation within their operations and supply chains. The legislation is anticipated to align with established international standards, including the OECD Guidelines for Responsible Business Conduct and the UN Guiding Principles on Business and Human Rights.

Reynolds added that the legislation will include enforcement powers, with a regulator empowered to investigate businesses suspected of placing goods made with forced labor on the market and to direct their withdrawal where due diligence obligations have not been met and forced labor is identified.

Reynolds said:

“This package will safeguard the competitiveness of responsible businesses, strengthen confidence in UK markets and help ensure that goods linked to forced labour do not reach UK consumers.”