Modern Slavery: A Recruiter's Guide

The Recruiter’s Complete Guide to Modern Slavery and Labour Exploitation in the UK

Modern slavery is something no recruiter wants to encounter. However, labour exploitation can sometimes be hidden within recruitment supply chains, making it an issue every agency should understand.

Recruitment professionals play an important role in protecting workers and promoting fair employment practices. The decisions made during the recruitment process can help prevent exploitation, identify concerns early and ensure workers are treated fairly from day one. 

In this guide, we explain what modern slavery can look like in recruitment, outline key legal responsibilities for agencies and share practical steps you can take to reduce risk within your organisation. 

What Does Modern Slavery Look Like in Recruitment?

Modern slavery is an umbrella term used to describe serious forms of exploitation, including slavery, servitude, forced or compulsory labour and human trafficking. 

It is important to understand that modern slavery does not always look the way people might expect. In many cases, workers are not physically prevented from leaving a role. Instead, control can be exercised through debt, intimidation, threats, withholding documents or dependence on others for employment, accommodation or transport. 

As recruiters, we are often the first point of contact for workers entering employment. That places our industry in a unique position to help identify concerns early and support responsible recruitment practices. 

Common Forms of Labour Exploitation

Labour exploitation can take several different forms. Understanding the most common risks can help recruiters recognise potential warning signs. 

Forced Labour

Forced or compulsory labour is work or service exacted under the threat of a penalty and not offered voluntarily. The threat can include violence, dismissal, deportation, withholding wages or other financial or psychological penalties. 

Debt Bondage

Debt bondage can arise when workers are required to repay recruitment costs, travel expenses, accommodation charges or other fees. The debt can become difficult or impossible to clear, leaving the worker trapped in a cycle of dependency. 

Human Trafficking

Under the Modern Slavery Act 2015, human trafficking involves arranging or facilitating a person’s travel with a view to exploitation. This can include recruiting, transporting, transferring, harbouring or receiving a person, and it can occur internationally or entirely within the UK. 

Servitude and Dependency Arrangements

Some workers may rely on the same person or organisation for work, housing and transport. This level of dependency can create opportunities for exploitation and excessive control. 

Wider Labour Abuse 

Issues such as underpayment, unlawful deductions, excessive working hours and unsafe working conditions may not always meet the legal definition of modern slavery. However, they can be indicators of wider labour exploitation and should never be overlooked. 

While some sectors are considered higher risk, including agriculture, food processing, construction, hospitality, social care and logistics, exploitation can occur in any industry. 

Understanding Your Legal Responsibilities

For recruitment agencies operating in England and Wales, the principal legislation is the Modern Slavery Act 2015. Scotland and Northern Ireland have separate trafficking and exploitation legislation. 

• Slavery, servitude, forced labour and human trafficking are criminal offences. 

• Commercial organisations carrying on business in the UK, supplying goods or services and with total turnover of at least £36 million must publish a slavery and human trafficking statement for each financial year under Section 54 of the Act. 

• Many clients require suppliers and recruitment partners to demonstrate their approach to tackling modern slavery, even when they are not legally required to publish a statement themselves. 

There are also other areas of legislation that recruiters should be familiar with. 

Employment Agency Regulations

Recruitment agencies and employment businesses in Great Britain must comply with the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003, as amended. These rules protect work-seekers and set standards for agency conduct. Northern Ireland has a separate regulatory regime. 

Minimum Wage and Deductions

Recruiters should be alert to any arrangements that could result in workers being paid below the National Minimum Wage, particularly where accommodation, transport or other charges are involved. 

Right to Work Checks 

Right to work checks are designed to establish whether a person is legally permitted to work and, when carried out correctly, can provide an employer with a statutory excuse against a civil penalty. They do not establish whether a worker is being exploited, so separate safeguarding and welfare checks remain necessary. 

Gangmasters Licensing and the Fair Work Agency

Recruitment agencies supplying workers in agriculture, horticulture, shellfish gathering and associated food processing and packaging must hold the relevant gangmasters licence. It is a criminal offence to act as a gangmaster without a licence or to use an unlicensed gangmaster. Recruiters should check the public register and keep licence status under review. 

This article provides general information and should not be considered legal advice. If you are unsure about your obligations, seek professional legal guidance. 

Warning Signs Recruiters Should Be Aware Of

A single concern may not indicate exploitation. However, patterns of behaviour can highlight potential risks that deserve further attention. 

Worker-Related Warning Signs

• Identity documents are held by another person. 

• The worker is unsure who they work for or how they are being paid. 

• They owe money to a recruiter, accommodation provider or transport provider. 

• They appear reluctant to speak openly or are always accompanied by someone else. 

• Multiple workers use the same bank account or address. 

• Their pay differs significantly from what was originally agreed. 

Client and Supplier Warning Signs

• Labour costs appear unrealistically low. 

• Information about payroll, subcontractors or working conditions is difficult to obtain. 

• Large groups of workers are supplied through a single intermediary. 

• There is pressure to bypass normal recruitment processes or checks. 

• Accommodation and transport deductions cannot be clearly explained or verified. 

If something does not seem right, trust your professional judgement and investigate further. 

Practical Steps for Responsible Recruitment

The most effective approach is to build modern slavery prevention into your everyday recruitment processes. 

1. Assess Your Risks 

Review the sectors you recruit for, the locations you operate in and any third-party organisations involved in your recruitment process. Identify where risks may be higher and document your findings. 

2. Never Charge Recruitment Fees to Workers 

Recruitment agencies and employment businesses must not charge work-seekers for work-finding services, subject to limited statutory exceptions for certain occupations. Do not make access to work conditional on buying other services and ensure recruitment partners follow the law and responsible-recruitment standards. 

3. Carry Out Due Diligence 

Take time to understand how your clients, suppliers and recruitment partners source labour. Ask questions and keep clear records of the answers provided. 

4. Provide Clear Information 

Ensure workers receive clear terms and conditions before they start work. Wherever possible, information should be provided in a language they understand. 

5. Monitor Pay and Deductions 

Regularly review payslips, deductions and accommodation arrangements to ensure workers are being treated fairly and paid correctly. 

6. Speak Directly to Workers 

Creating opportunities for private conversations can help workers raise concerns they may not feel comfortable discussing in front of supervisors or intermediaries. 

7. Train Your Colleagues 

Everyone involved in recruitment, onboarding, payroll and worker support should understand the signs of exploitation and know how to escalate concerns. 

8. Establish a Clear Reporting Process 

Make sure your organisation has a clear process for recording concerns, investigating issues and deciding on appropriate next steps. 

9. Review Regularly 

Modern slavery risks can change over time. Review risk assessments, due-diligence records, training and reporting procedures regularly, and whenever your sectors, locations, clients or labour-supply arrangements change.