Larger UK businesses that rely on small independents should look at hiring practices with more scrutiny as a recent government crackdown on illegal workers holds a significant corporate reputation and sustainability risk.

A co-ordinated sting operation this week, saw hundreds of migrant workers – predominantly in nail bars – arrested across the country in a government clampdown on illegal employment practices, and the criminal gangs behind the lethal cross-channel migration business.

The headline focus has largely been on small independent businesses that may exploit people in the shadows; such as nail bars, car washes and takeaways. But, attention is shifting to larger chain businesses and supply chains.

The risk for larger companies relying on smaller businesses, unless able to clearly demonstrate that appropriate measures have been took to ensure staff are legal, is clear to see.

According to some reports, the political and moral pressure to deter gangs from organising small boats crossing the English Channel may have created a higher risk of migrants being exploited once in the UK. This is because the Modern Slavery Act 2015 has been reportedly weakened by subsequent immigration rules, introduced in 2023.

The 2015 act forced large businesses to carry out checks to assure that supply chains were free from slavery practices, but the new 2023 measures have been criticised for fracturing the approach to migration and worker protection – to the point that, for example, families can be broken up and individuals can allegedly disappear.

New Government proposals will seek to overturn some of the changes made in 2023 and are intended to increase the deterrent to trafficking gangs.

Despite companies adding modern slavery compliance statements to public-facing content, the governmental attempts to better protect workers may now see more of a spotlight shined on corporate responsibilities.

Global supply chains, particularly in retail, have changed significantly since the slavery act 2015 was introduced, and while many large companies in higher-risk sectors like food and manufacturing are tuned in to the employment practices of overseas suppliers, there remains a need to apply such scrutiny on businesses closer to home.

Just a couple of months ago, around a quarter of the UK’s larger listed businesses had found evidence of modern slavery in their supply chains, with property and technology firms found to be those worst at disclosing associated risks.

Even so, it is often extremely tough for companies to tackle it, particularly when temporary workers are brought in at short notice.

Rather than seeing the issue purely as a reputation risk, firms have an opportunity to get ahead of the problem and take steps to detect and report it, according to this article, which points out that “sunlight is the best disinfectant”.

With the Government having just announced a joint committee enquiry into practices, that sunlight may soon shine a little brighter.