Original HRC document

PDF

Document Type: Final Report

Date: 2015 Jul

Session: 30th Regular Session (2015 Sep)

Agenda Item: Item3: Promotion and protection of all human rights, civil, political, economic, social and cultural rights, including the right to development

GE.15-11551 (E)



Human Rights Council Thirtieth session

Agenda item 3

Promotion and protection of all human rights, civil,

political, economic, social and cultural rights,

including the right to development

Report of the Special Rapporteur on contemporary forms of slavery, including its causes and consequences, Urmila Bhoola

Summary

Following a brief overview of the activities carried out by the mandate, the Special

Rapporteur in the present report provides a thematic study on enforcing the accountability

of States and businesses for preventing, mitigating and redressing contemporary forms of

slavery in supply chains.

Contents

Page

I. Introduction ...................................................................................................................................... 3

II. Activities of the mandate .................................................................................................................. 3

III. Enforcing State and business accountability for ending contemporary forms

of slavery in supply chains .............................................................................................................. 4

A. International and regional normative framework for the duty of States

to protect the right not to be subjected to slavery and slavery-like practices ........................... 5

B. Causes and prevalence of contemporary forms of slavery

in supply chains and examples of sectors at risk...................................................................... 6

C. Steps taken by States to comply with their duty to ensure business

accountability for ending contemporary forms of slavery in supply chains ............................ 9

D. International framework for the responsibility of businesses

to respect human rights ............................................................................................................ 12

E. Business and stakeholder initiatives to address contemporary forms

of slavery in supply chains ...................................................................................................... 14

F. Corporate legal liability and access to remedies in cases involving

contemporary forms of slavery in supply chains ..................................................................... 16

G. Some challenges and gaps to ensuring the accountability of States and businesses

for contemporary forms of slavery in supply chains ................................................................ 18

IV. Conclusion and recommendations ........................................................................................... 19

I. Introduction

1. The present report is submitted pursuant to Human Rights Council resolution 24/3,

renewing the mandate of the Special Rapporteur on contemporary forms of slavery,

including its causes and consequences, for three years. Following a brief overview of the

activities carried out by the mandate holder, the Special Rapporteur, Urmila Bhoola, then

focuses on one of the priority areas as identified in her first report to the Council

(A/HRC/27/53): the duty of States and responsibility of business to eliminate contemporary

forms of slavery from supply chains.

II. Activities of the mandate

2. The Special Rapporteur conducted official country visits to the Niger and Belgium

from 11 to 21 November 2014 and from 19 and 26 February 2015, respectively, and her

mission reports are issued as addenda to the present report. She would like to reiterate her

gratitude to the Government of the Niger and the Government of Belgium for the

cooperation extended before and during the visit and looks forward to continued

cooperation on the issues pertaining to her mandate. The Special Rapporteur also wishes to

thank all those States that have extended to her an invitation for a visit.

3. Since the presentation of her report to the Council in September 2014, the Special

Rapporteur has held consultations with various stakeholders and participated in several

events relevant to the mandate, with those most prominent presented below.

4. On 10 September 2014, she made concluding remarks at a Council side event

entitled “Religions and Slavery: What role for religions in the fight against contemporary

forms of slavery?”, supported by the Permanent Observer Mission of the Holy See and the

Permanent Observer Mission of the Order of Malta to the United Nations Office at Geneva.

5. On 1 December 2014, she delivered a keynote speech via video message at a

conference entitled “Child Labour and Responsibility of European Consumers”, organized

in Vienna on the occasion of the International Day for the Abolition of Slavery by the

Academic Council on the United Nations System.

6. From 22 to 23 January 2015, the Special Rapporteur participated in the Global Care

Advocacy Workshop, held under the auspices of the Asia Pacific Forum on Women in Law

and Development, the Institute for Development Studies and Action Aid International in

Bangkok, where she chaired a session on the role of the mandate in eradicating domestic

servitude.

7. From 17 to 19 March 2015, the Special Rapporteur participated at the

second international legal conference on contemporary forms of slavery, organized at the

University of Granada, Spain, and provided an inaugural address.

8. From 25 to 27 March 2015, she presented a paper on the role of the special

procedures and human rights treaty bodies in addressing criminal justice for slavery at a

policy retreat on “Eradicating modern slavery: What role for international criminal

justice?”, organized by the United Nations University, the Freedom Fund, the Permanent

Mission of Liechtenstein to the United Nations and the Journal of International Criminal

Justice in New York. Prior to that, from 22 to 24 March 2015, the Special Rapporteur held

consultation meetings with the Alliance to End Slavery and Trafficking, and Humanity

United in Washington, D.C. She also met with the International Corporate Accountability

Roundtable, Human Rights First, the United States Agency for International Development

and the Bureau of International Labor Affairs.

9. The Special Rapporteur also delivered a keynote speech at the fourth international

seminar on contemporary forms of slave labour, which was held at the Universidade

Estadual Paulista, Franca, Brazil, from 5 to 8 May 2015.

10. On 18 June 2015, the Special Rapporteur provided an introductory statement via

video message at a Council side event on the role of the United Nations in combating the

intersection of caste and gender in the area of forced and bonded labour, sponsored by

Human Rights Watch, the International Movement Against All Forms of Discrimination

and Racism, the Minority Rights Group, Anti-Slavery International and Franciscans

International and organized in association with the International Dalit Solidarity Network.

11. In relation to the present thematic report, on 2 April 2015, the mandate holder

organized an expert meeting on eradicating contemporary forms of slavery from supply

chains in Geneva. 1 The meeting brought together more than 20 leading experts from

international organizations, businesses, employer organizations, trade unions, non-

governmental organizations, investor groups, foundations and academia. The Special

Rapporteur wishes to thank the expert participants for their valuable contributions to the

consultation and follow-up thereto.

12. While taking note of the previous initiatives undertaken by mandate holders relating

to human rights violations in the context of supply chains,2 in the present report, the Special

Rapporteur focuses, inter alia, on legal and policy frameworks and stakeholder initiatives to

ensure that businesses, in relation to their supply chains, respect human rights and eradicate

contemporary forms of slavery, understood for the purpose of the present report primarily

as forced labour, debt bondage and the worst forms of child labour, through increased

human rights due diligence and effective remediation.

III. Enforcing State and business accountability for ending contemporary forms of slavery in supply chains

13. Following egregious violations of health and building safety standards that resulted

in fatal accidents, such as the 2013 Rana Plaza factory collapse in Bangladesh leading to

death of over 1,100 garment workers,3 additional attention has been given to increasing

State and corporate accountability for violations of human rights, including labour rights, in

global value or supply chains.4 In this context, the recent commitment by leaders of major

global economies at the recent Group of Seven (G7) Summit to take action to address

human rights in global supply chains is welcome and needs to be followed up by concrete

actions.5

1 See www.ohchr.org/EN/Issues/Slavery/SRSlavery/Pages/ExpertMeeting2015.aspx.

2 See, for example, A/67/261 and A/HRC/23/48/Add.4.

3 These incidents continue to occur. The Asia Pacific Forum on Women, Law and Development called

for increased business accountability after 72 women workers burned to death in factory fire in the

Philippines in May 2015 (www.apwld.org).

4 See Ending Exploitation, OSCE occasional paper series No.7, p.7. A United Nations Children’s Fund

report (Children’s Rights and Business Principles, p. 9) explains that the value chain of a business

“encompasses the activities that convert inputs into outputs by adding value. It includes entities with

which the business has a direct or indirect business relationship and which either a) supply products

or services that contribute to the business’s own products or services [a ‘supply chain’], or b) receive

products or services from the business” (conventionally known as a production chain).

5 See Leaders’ Declaration, G7 Summit, 7–8 June 2015, pp. 4–6,

https://www.g7germany.de/Content/EN/_Anlagen/G7/2015-06-08-g7-abschluss-

eng_en.pdf?__blob=publicationFile&v=1. See also International Trade Union Confederation

statement, available at www.ituc-csi.org/international-union-bodies-welcome.

A. International and regional normative framework for the duty of States

to protect the right not to be subjected to slavery and slavery-like

practices

14. The right to be free from slavery is a peremptory norm of international law from

which no derogation is permitted and creates an erga omnes obligation on all States to

protect this right. It is entrenched in the Slavery Convention of 1926 and has been

incorporated into the Universal Declaration of Human Rights (art. 4), the International

Covenant on Civil and Political Rights (art. 8 (1))6 and the International Convention on the

Protection of the Rights of All Migrant Workers and Members of Their Families (art. 11

(1)).

15. In the Supplementary Convention on the Abolition of Slavery, the Slave Trade, and

Institutions and Practices Similar to Slavery of 1956, the protection of the right is extended

to include “institutions and practices similar to slavery”, i.e. debt bondage, serfdom, servile

marriage and delivering a child for exploitation. Child economic exploitation and child

hazardous labour are further prohibited in the International Covenant on Economic, Social

and Cultural Rights (art. 10 (3)) and the Convention on the Rights of the Child (art. 32). In

the International Labour Organization (ILO) Worst Forms of Child Labour Convention,

1999 (No. 182), the elimination of the worst forms of child labour is called for, which are

defined as including all forms of slavery or practices similar to slavery, such as the sale and

trafficking of children, debt bondage, serfdom and forced or compulsory labour as well as

hazardous work (art. 3).

16. While in the Slavery Convention reference is made to forced labour and States are

called on to take all necessary measures to prevent compulsory or forced labour from

developing into conditions analogous to slavery (art. 5), forced labour was not defined until

the ILO Forced Labour Convention, 1930 (No. 29). The right not to be subjected to forced

labour is now enshrined in a number of other international instruments, including in the

ILO Abolition of Forced Labour Convention, 1957 (No. 105), the International Covenant

on Civil and Political Rights (art. 8 (3)) and the International Convention on the Protection

of the Rights of All Migrant Workers and Members of Their Families (art. 11 (1)). In the

ILO Declaration on Fundamental Principles and Rights at Work (1998), the elimination of

all forms of forced or compulsory labour and the effective abolition of child labour is

required.

17. The Protocol of 2014 to the Forced Labour Convention, 1930 (No. 29),7 outlines

measures for prevention and elimination of forced labour and emphasizes the need for

victim protection and access to appropriate and effective remedies, such as compensation.

One of the preventive measures it sets out is “supporting due diligence by both the public

and private sectors to prevent and respond to risks of forced or compulsory labour” (art. 2

(e)). The non-binding ILO Recommendation 203,8 providing practical guidance on the

Protocol, while not referring specifically to supply chains, contains a provision on

preventive measures, in which States are called on to provide guidance and support to

employers and businesses to take effective measures to identify, prevent, mitigate and

account for how they address the risks of forced or compulsory labour in their operations or

in products, services or operations to which they may be directly linked (section 4 (j)). The

6 In the Covenant and the Universal Declaration, it is stipulated that no one shall be held in servitude,

although in neither of the instruments is that term defined.

7 At the time of writing, the Protocol was not yet in force but had been ratified by the Niger on 14 May

2015.

8 Recommendation on Supplementary Measures for the Effective Suppression of Forced Labour,

adopted by the International Labour Conference at its 103rd session, Geneva, 11 June 2014.

Protocol is largely aligned with the Guiding Principles on Business and Human Rights:

Implementing the United Nations “Protect, Respect and Remedy” Framework (see below),

although it is limited because, inter alia, it focuses only on forced labour and not on all

human rights violations.

18. At the regional level, States’ obligation to eradicate contemporary forms of slavery

is enshrined in a number of human rights instruments. Under article 4 of the Council of

Europe Convention for the Protection of Human Rights and Fundamental Freedoms,

slavery, forced labour and servitude are prohibited. In article 5 of the African Charter on

Human and Peoples’ Rights, it is stated that, inter alia, slavery and slave trade shall be

prohibited. The African Charter on the Rights and Welfare of the Child, in its article 15,

enshrines the protection of children from all forms of economic exploitation and from

performing any hazardous work. Slavery, involuntary servitude, slave trade and traffic in

women, as well as forced labour, are prohibited under the American Convention on Human

Rights (art. 6). In article 10 of the Arab Charter on Human Rights all forms of slavery,

servitude and forced labour are prohibited.

B. Causes and prevalence of contemporary forms of slavery in supply

chains and examples of sectors at risk

19. Globalization has created unprecedented opportunities for corporations to extend

their operations across national borders, including to developing countries, in order to

source the cheapest products and maximize profit. The demand for cheap labour meets a

ready supply of workers from vulnerable groups: indigenous people, minorities, those

considered to be from the “lowest castes” and migrants, especially those in an irregular

situation. Women workers are particularly vulnerable to exploitation in certain sectors

given the nexus of gender discrimination and inequality.

20. Global enterprises with supply chains that are long and complex and involve

complicated networks of subsidiaries, franchisees, suppliers, contractors and subcontractors

are more likely to be faced with challenges related to contemporary forms of slavery. While

the first tier of supply chains is less susceptible to the risk of contemporary forms of

slavery, the lower levels have been shown to be at risk of products or raw materials being

sourced from home-based or small workshops in the informal economy and made in

situations of debt bondage, forced labour or the worst forms of child labour.

21. Although more research into the scope and prevalence of contemporary forms of

slavery is required, various small-scale studies (for example, on the garment, conflict

mineral, seafood, sporting goods, handmade carpet and tea industries) show that products

from the informal sector enter global supply chains and are also part of domestic economies

in the developing world, often in the most labour-intensive sectors. 9 Human rights

violations in the sourcing of conflict minerals, for example, have received much attention,10

but more research is required to identify the scope and prevalence of contemporary forms

of slavery in supply chains of specific commodities and particular sectors. The sectors

9 See, for example, FairFood International, “Caught in a Trap – the story of poverty behind Asian

shrimp sold in European supermarkets” (2015). Available at www.fairfood.org/wp-

content/uploads/2015/04/Caught-in-a-trap.pdf.

10 For example, in relation to the sourcing of conflict minerals, where the public furore resulted in the

Organization for Economic Cooperation and Development (OECD) Due Diligence Guidance for

Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (adopted in

May 2011 and amended in July 2012).

mentioned in the present report are therefore not meant to be a comprehensive list, but an

indication of where contemporary forms of slavery have been reported to occur.11

22. According to ILO data from 2012, 5.5 million of the 20.9 million of persons in

forced labour are children12 and an estimated 5–15 per cent of those are working in supply

chains, with the figure significantly higher if domestic supply chains are also taken into

account. The lowest tiers in the informal economy are particularly at risk of involving the

worst forms of child labour. In 2012, the number of children involved in hazardous work

that directly endangers their health, safety and moral development, often understood as a

proxy for the worst forms of child labour, was said to be 85 million in absolute terms.13

While reliable data on those sectors most susceptible to using such work are difficult to

obtain, cases of the worst forms of child labour were found in sectors that correspond to

those with a high risk of contemporary forms of slavery occurring in supply chains,

including agriculture (i.e., farming of raw materials such as sugar, cotton, cocoa and

tobacco), construction, mining and quarrying, and garments and textiles.14

23. In agriculture, contemporary forms of slavery have reportedly occurred in many

countries, involving crops such as sugar cane, cut flowers, fruit and vegetables, tropical

nuts and commodities, for example, palm oil, cotton, 15 cocoa, tobacco and beef. 16

Production in the sector often relies on temporary or migrant labour and is characterized by

complex contracting and subcontracting chains, as well as smallholder farming in some

cases. Much of the work on remote farms and plantations is typified by excessive working

hours, lack of compliance with labour laws, weak or non-existent labour inspections and

corruption. Competition to produce at the lowest cost enhances the risk of contemporary

forms of slavery being involved in agriculture, especially debt bondage in impoverished

rural communities and among vulnerable categories of workers, such as indigenous people,

minorities, migrants, women and children.

24. In the garment and textile sectors, reports indicate a significant risk of contemporary

forms of slavery occurring in the complex subcontracting that characterizes the industry in

many parts of the world, including the sometimes home-based and informal workshops

operating on the margins of the formal economy. Subcontractors such as these are often

overlooked both by labour inspections and due diligence systems, making workers in these

supply chains particularly vulnerable to exploitation given the quick turnaround time to

meet orders from global fashion brands and consumer needs. Contemporary forms of

slavery have often been cited as occurring in global supply chains of international brands.17

11 A comprehensive database of reported cases, including companies’ responses, can be found on the

Business and Human Rights Resource Centre website (www.business-humanrights.org).

12 See ILO, “Global Estimate of Forced Labour: Results and methodology” (2012).

13 ILO, “Marking Progress against Child Labour: Global Estimates and Trends 2000–2012” (2013),

pp. 3 and 32.

14 ILO, “Implementing the Roadmap for Achieving the Elimination of the Worst Forms of Child Labour

by 2016: a training guide for policymakers” (2013), p. 9.

15 Various advocacy initiatives have addressed forced labour in cotton-picking in Uzbekistan. See, for

example, Anti-Slavery International (www.antislavery.org); the Uzbek-German Forum for Human

Rights, “The Government’s Riches, the People’s Burden: Human Rights Violations in Uzbekistan’s

2014 Cotton Harvest” (2015)

(www.antislavery.org/includes/documents/cm_docs/2015/2/2014_cotton_harvest_report.pdf); and the

OECD, “Annual Report on the OECD Guidelines for Multinational Enterprises 2012” on examples of

complaints regarding sourcing of Uzbek cotton made to national contact points, and how these were

addressed (http://dx.doi.org/10.1787/mne-2012-en).

16 For example, www.verite.org/Commodities.

17 See, for example, Centre for Research on Multinational Corporations and India Committee of the

Netherlands, “Flawed Fabrics: the abuse of girls and women workers in the South Indian textile

25. Despite the various measures taken to eradicate the worst forms of child labour from

the carpet industry, these forms were reported to continue to exist in handmade carpet

production units in South Asia, in which carpets are produced for export mainly to the

United States of America.18 Various studies have reported the existence of contemporary

forms of slavery and labour exploitation in the construction industry19 and forced labour in

the manufacturing of electronic goods has also been the subject of recent research.20

26. The food processing and packaging industry has been frequently implicated in

labour exploitation that can amount to contemporary forms of slavery, particularly in fish

and seafood processing in parts of South-East Asia.21 Reports have been made involving

workers enslaved on fishing vessels in the region.22

27. The mining23 and forestry24 sectors have also been cited in reports on forced labour

in supply chains. Here risks include vulnerability arising from the isolated nature of

industry” (2014) (www.indianet.nl/FlawedFabrics.html); Anti-Slavery International, “Slavery on the

high street: forced labour in the manufacture of garments for international brands” (2012)

(www.antislavery.org/includes/documents/cm_docs/2012/s/1_slavery_on_the_high_street_june_2012

_final.pdf).

18 See Siddharth Kara, Tainted carpets Slavery and Child Labor in India’s Hand-Made Carpet Sector

(2014, Harvard University).

19 See, for example, Human Rights Watch, “Migrant Workers’ Rights on Saadiyat Island in the United

Arab Emirates” (2015) (www.hrw.org/sites/default/files/reports/

uae0215_ForUploadR.pdf); Business and Human Rights Centre, “Labour rights and the Qatar World

Cup 2022” (http://business-humanrights.org/en/major-sporting-events/labour-rights-and-the-qatar-

world-cup-2022); and Human Rights Watch, “Building a Better World Cup Protecting Migrant

Workers in Qatar Ahead of FIFA 2022” (2012) (www.hrw.org/reports/2012/06/12/building-better-

world-cup).

20 ILO referred to the response of a major United States electronics company to allegations of forced

labour in factories in China in its publication Combating Forced Labour: A Handbook for Employers

& Business, Good Practice Case Studies, Part 7 (2008), pp. 5–7. See also China Labor Watch, “Is

Samsung Infringing Upon Apple’s Patent to Bully Workers?” (2012)

(www.chinalaborwatch.org/upfile/2012_9_4/Samsung%20Report%200904-v3.pdf) and “Beyond

Foxconn: Deplorable Working Conditions Characterize Apple’s Entire Supply Chain” (2012)

(www.chinalaborwatch.org/upfile/2012_8_13/2012627-5.pdf); and Verité, “Forced Labor in the

Production of Electronic Goods in Malaysia: A Comprehensive Study of Scope and Characteristics”

(2014) (www.verite.org/sites/default/files/images/VeriteForcedLaborMalaysian

Electronics2014.pdf).

21 See, for example, ILO, Caught at sea: forced labour and trafficking in fisheries (2013)

(www.ilo.org/wcmsp5/groups/public/---ed_norm/---

declaration/documents/publication/wcms_214472.pdf); Environmental Justice Foundation, Slavery at

Sea: the continued plight of trafficked migrants in Thailand’s fishing industry (2014)

(http://ejfoundation.org/sites/default/files/public/EJF_Slavery-at-Sea_report_2014_web-ok.pdf).

22 Robin McDowell and others, “Slavery taints global supply of seafood: AP investigation”, Washington

Times, 25 March 2015 (www.washingtontimes.com/news/2015/mar/25/slavery-taints-global-supply-

seafood).

23 See A/HRC/18/30. See also Human Rights Watch, “Precious Metal, Cheap Labor – Child Labor and

Corporate Responsibility in Ghana’s Artisanal Gold Mines” (2015)

(www.hrw.org/sites/default/files/reports/ghana0515_forinsertLR2.pdf); Stop Child Labour and India

Committee of the Netherlands, Rock Bottom: modern slavery and child labour in South Indian granite

quarries (2015) (www.indianet.nl/RockBottom.html); Verité, “Risk Analysis of Indicators of Forced

Labor and Human Trafficking in Illegal Gold Mining in Peru” (2013)

(www.verite.org/sites/default/files/images/IndicatorsofForcedLaborinGoldMininginPeru.pdf); and

ILO, “Buried in Bricks: A rapid assessment of bonded labour in brick kilns in Afghanistan” (2012)

(www.ilo.org/wcmsp5/groups/public/---asia/---ro-

bangkok/documents/publication/wcms_172671.pdf).

24 For example, www.verite.org/Commodities/Timber.

workplaces, the role of private security firms, the presence of organized criminals attracted

by high value commodities such as gold or other minerals, and the growth of illegal,

unlicensed or unregulated mines and forestry operations that benefit from weak regulation

and law enforcement.

C. Steps taken by States to comply with their duty to ensure business

accountability for ending contemporary forms of slavery in supply

chains

28. States have an obligation under international human rights law to respect, protect

and fulfil the human rights of all persons in their territory and/or jurisdiction. This includes

the duty to protect individuals and groups against human rights abuses committed by

private actors, such as business enterprises. The Human Rights Committee, in paragraph 8

of its general comment No. 31 (2004) on the nature of general legal obligations on States

Parties to the Covenant, stipulates the need for States to exercise due diligence to prevent,

punish, investigate or redress the harm caused by private persons or entities.

29. The Guiding Principles on Business and Human Rights,25 unanimously endorsed by

the Human Rights Council in 2011, validate the duty of States to protect against and redress

business-related human rights harms, and it is stipulated therein that this is to be done

through effective policies, legislation, regulations and adjudication (principle 1). State

duties include setting out clearly the expectation that all business enterprises domiciled in

their territory and/or jurisdiction respect human rights throughout their operations (principle

2).

30. In the context of contemporary forms of slavery, this duty to protect could translate

into a smart mix of measures to ensure that businesses engage in their responsibility to

respect human rights, including through undertaking human rights due diligence throughout

their supply chains and remediating the adverse impact of their operations on human rights.

At the very minimum, States should ensure that businesses realize the implications of

purchasing products or services that have in any way been linked to forced labour or other

contemporary forms of slavery. To date, States have adopted diverse approaches to

addressing this issue, which include ensuring criminal, civil and tort liability for business-

related human rights violations, setting up mechanisms to regulate such compliance in trade

and consumer protection and addressing it in government procurement. Disclosure and

transparency can also feature as legal obligations rather than being limited to voluntary

corporate social responsibility initiatives.26

31. In the most recent development, in March 2015, the Parliament of the United

Kingdom passed the Modern Slavery Bill, which includes a specific part on transparency in

supply chains and imposes obligations on businesses to disclose the steps, if any, they are

taking to address contemporary forms of slavery in supply chains.27 The duties imposed in

25 In the Guiding Principles on Business and Human Rights, which operationalize Protect, Respect and

Remedy: a Framework for Business and Human Rights, the different roles and responsibilities of

States (first pillar) and businesses (second pillar) to address their impact on human rights and the

access to remedy for business-related human rights abuse (third pillar) are clarified.

26 For a detailed analysis of different regulatory frameworks, see International Corporate Accountability

Roundtable report, “Human Rights Due Diligence: The role of States” (2012) (http://icar.ngo/wp-

content/uploads/2012/12/Human-Rights-Due-Diligence-The-Role-of-States.pdf).

27 It is widely acknowledged that the provisions for transparency in supply chains were inserted largely

owing to advocacy conducted by the Ethical Trading Initiative, a multi-stakeholder partnership of

businesses, trade unions and non-governmental organizations, covering over 70 companies and in

2015 reaching nearly 10 million workers across the globe.

the Modern Slavery Act 28 can be enforced in civil proceedings undertaken by the

authorities. Under the Act, company disclosures must be signed by a company director,

creating clear accountability. Regulations are currently being prepared to operationalize the

provisions for transparency, based on consultations. In some of the submissions for the

consultations, it was suggested that a threshold be introduced that would bring even small

companies within the ambit of the Act, which would require companies to reveal business

relationships in the lower tiers of their supply chains and set clear criteria for disclosures in

their reports; it was also suggested that reports be featured on a government website. The

Act has, however, received criticism for creating a loophole that allows United Kingdom-

based companies to effectively “hide” their supply chains if the goods produced do not

enter the United Kingdom.29

32. In the context of transparency, the most often cited legislation is the California

Transparency in Supply Chains Act of 2010,30 which came into effect on 1 January 2012.

Under the Act, all retailers and manufacturers with annual global revenues of over US$100

million doing business in California, whether or not they have their headquarters there, are

required to disclose their efforts to eradicate slavery and human trafficking from their direct

supply chains for tangible goods offered for sale. While an important development, the law

is judged to be insufficient because it only requires companies to report on what, if

anything, they are doing to address contemporary forms of slavery, using five specific

categories: verification, auditing, certification, internal accountability and training, and no

specific preventive actions need to be taken nor does it call to improve conditions for those

vulnerable to abuse in the supply chain.31

33. In 2014, the draft Business Supply Chain Transparency on Trafficking and Slavery

Act of 201432 was introduced into the United States Congress. The Act, not yet adopted,

contains, inter alia, reporting requirements for businesses relating to the disclosure of

conditions amounting to forced labour, slavery, human trafficking and the worst forms of

child labour in supply chains. At the time of writing the present report, a draft law on

business human rights due diligence in supply chains was pending before the Senate in

France,33 after having been adopted by the National Assembly in the first reading in March

2015.

34. The Brazilian Ministry of Labour maintains a record of people and corporations

found to be using slave labour, which has been termed the “dirty list”, established by

ministerial decree of 2003. The database was used by public and private companies that

applied commercial and financial sanctions. The list grew to include 52 employers of slave

labourers in 2003 to 609 as of July 2014. However, in December 2014, the Supreme Court

granted an injunction to an association of construction companies, suspending the “dirty

list”. To date, attorneys from the Federal Government have not been able to re-establish the

database. Another challenge to the list was launched following the Labour Prosecutor’s

28 Available at www.legislation.gov.uk/ukpga/2015/30/pdfs/ukpga_20150030_en.pdf.

29 See Anti-Slavery International,

www.antislavery.org/english/press_and_news/news_and_press_releases_2009/analysis_of_modern_sl

avery_act.aspx.

30 Available at www.state.gov/documents/organization/164934.pdf.

31 See Verité, “Compliance is Not Enough: best practices in responding to the California Transparency

in Supply Chains Act” (2011)

(www.verite.org/sites/default/files/VTE_WhitePaper_California_Bill657FINAL5.pdf), and the

Alliance to End Slavery and Trafficking, “Beyond SB 657: How Businesses Can Meet and Exceed

California’s Requirement to Prevent Forced Labour in Supply Chains” (2013)

(www.genderprinciples.org/resource_files/ATEST_Report_Beyond_SB657_final.pdf).

32 Available at https://www.congress.gov/113/bills/hr4842/BILLS-113hr4842ih.pdf.

33 Text No. 376 (2014–2015), available at www.senat.fr/leg/ppl14-376.pdf.

Office finding that Zara Brazil (part of global brand Inditex) had directive power over the

supply chain34 and litigation has ensued which includes a challenge to the constitutionality

of the “dirty list”. Also in Brazil, the Sao Paulo State Law to Combat Slave Labour, also

known as the Bezerra Law, seeks to regulate the disclosure of slave labour.35

35. At the United States federal level, under the Trafficking Victims Protection

Reauthorization Act of 2005, the Department of Labor’s Bureau of International Labour

Affairs is mandated to, inter alia, create and maintain a List of Goods Produced with Child

Labor or Forced Labor.36 In addition, a list of products using forced or indentured child

labour is also produced by the Bureau of International Labour Affairs and intended to

ensure that United States federal agencies do not procure goods made by this labour.37

Under the Trade and Development Act of 2000,38 the Secretary of Labor is mandated to

issue beneficiary country initiatives to implement their international commitments to

eliminate the worst forms of child labour. These transparency initiatives primarily provide

information for government procurement but also assist investors and consumers.

36. Executive Order 13627 on strengthening protections against trafficking in persons in

federal contracts, issued in September 2012, targets contemporary forms of slavery in

government procurement. 39 Under the Executive Order, federal contractors, sub-

contractors, and their employees are prohibited from engaging in misleading or fraudulent

recruitment practices; charging employees recruitment fees; and destroying, concealing,

confiscating or otherwise denying an employee access to their identity documents, such as

passports or drivers’ licences (section 2 (1)(A)(i)–(iii)). Under the Order, contractors and

subcontractors are further required to agree to fully cooperate, by contractual agreement, in

providing reasonable access to enforcement agencies to conduct audits, investigations and

other actions to assess compliance with the Trafficking Victims Protection Act of 2000

(section 2 (1)(B)). The Federal Acquisition Regulation 40 that needed to be updated

following the Executive Order and related requirements in the Ending Trafficking in

Government Contracting Act (set forth in the National Defense Authorization Act for

2013)41 entered into force in March 2015, hence it is difficult to comment on its impact in

practice.

37. The United States Tariff Act of 1930 is also relevant to supply chains and goods

produced using forced labour. In section 1307 of the Tariff Act, the import of goods

produced with prison labour and forced labour is specifically prohibited: “All goods, wares,

articles, and merchandise mined, produced, or manufactured wholly or in part in any

foreign country by convict labor or/and forced labor or/and indentured labor under penal

sanctions shall not be entitled to entry at any of the ports of the United States, and the

34 See Repórter Brasil and SOMO, From Moral responsibility to legal liability modern day slavery

conditions in the global garment supply chain and the need to strengthen regulatory frameworks: the

case of Inditex-Zara in Brazil (2015) (www.cleanclothes.org/resources/national-cccs/from-moral-

responsibility-to-legal-liability).

35 Law No. 14.946/2013, available at www.al.sp.gov.br/repositorio/legislacao/lei/2013/lei-14946-

28.01.2013.html.

36 United States Department of Labor, list of goods produced with child labor or forced labor, available

at www.dol.gov/ilab/reports/child-labor/list-of-goods/.

37 Under Executive Order No. 13126 of 1999 on prohibition of acquisition of products produced by

forced or indentured child labor and available at www.dol.gov/ilab/reports/child-labor/list-of-

products/index-country.htm.

38 Available at www.dol.gov/ilab/about/laws/pdf/20000518TDA.pdf.

39 See www.whitehouse.gov/the-press-office/2012/09/25/executive-order-strengthening-protections-

against-trafficking-persons-fe.

40 See https://www.acquisition.gov/sites/default/files/current/far/pdf/FAR.pdf.

41 See www.gpo.gov/fdsys/pkg/BILLS-112hr4310enr/pdf/BILLS-112hr4310enr.pdf.

importation thereof is hereby prohibited”. The terms forced labour or/and indentured labour

include forced or indentured child labour.

38. Restrictions on trade that has negative human rights impact is particularly relevant to

addressing slavery and slavery-like practices in supply chains. The Alliance to End Slavery

and Trafficking, and Humanity United have recently supported initiatives in the United

States Congress to strengthen human rights provisions in trade agreements. This followed a

proposed amendment to the Trade Act of 2015 42 to prohibit an international trade

agreement from receiving fast-track benefits if it involves a country that is not meeting

minimum standards in combating human trafficking.43

39. Although the assessment of the efficacy of these legislative developments in practice

is beyond the scope of the present report, they provide a snapshot of the issues that impact

on the challenge of States to regulate the human rights conduct of businesses operating

supply chains outside domestic economies. In these cases, risks and violations are often off-

shored, resulting in lack of redress under domestic laws, but having significant impact on

the human rights situation in developing economies. This results in challenges to effectively

address business-related human rights harms in supply chains and requires sustainable and

holistic solutions that involve all stakeholders in the supply chain.

D. International framework for the responsibility of businesses to respect

human rights

40. In the Universal Declaration of Human Rights, every individual and every organ of

society is required to strive to contribute to the universal and effective recognition and

observance of human rights for all. While it is commonly accepted that under international

human rights law businesses have a responsibility to respect human rights, there is as yet no

international legal duty for them to protect human rights. Human rights due diligence, i.e. a

continuous process of identifying and addressing the human rights impact of a company

across its operations and products, and throughout its supplier and business partner

networks,44 is therefore the primary standard used to assess business compliance with its

human rights responsibilities.

41. Under principle 12, of the Guiding Principles on Business and Human Rights,

which in their second pillar clarify the business responsibility to respect human rights, this

responsibility applies to all internationally recognized human rights, understood, at a

minimum, as those expressed in the International Bill of Human Rights and the ILO

Declaration on Fundamental Principles and Rights at Work. All businesses are required to

avoid causing or contributing to adverse human rights impacts through their own activities,

address such impacts when they occur and seek to prevent or mitigate adverse human rights

impacts that are directly linked to their operations, products or services by their business

relationships, even if they have not contributed to those impacts (principle 13). Under

principle 12 in conjunction with principle 13 (which refers to “business relationships” that

are understood to include relationships with business partners, entities in the value chain,

and any other non-State or State entity directly linked to its business operations, products or

services, i.e. entities in its supply chain beyond the first tier and indirect as well as direct

42 Available at https://www.congress.gov/bill/114th-congress/house-bill/1314/text.

43 See David Abramowitz, “Trade legislation can help stop human trafficking”, The Hill, 10 June 2015

(http://thehill.com/blogs/pundits-blog/international/244538-trade-legislation-can-help-stop-human-

trafficking).

44 See Frequently asked questions about the Guiding Principles on Business and Human Rights (United

Nations publication, Sales No. E.14.XIV.6), p. 27. Available from

www.ohchr.org/Documents/Publications/FAQ_PrinciplesBussinessHR.pdf.

business relationships), 45 it is made clear that there is a responsibility on the part of

businesses to effectively address contemporary forms of slavery in their supply chains.

42. In order to meet their responsibility to respect human rights, businesses need to, as

per principle 16, adopt human rights policy statements, the criteria for which are set out in

this principle. The responsibility to respect also requires ongoing human rights due

diligence to identify, prevent, mitigate and account for human rights impacts (principles

17–21). The Guiding Principles on Business and Human Rights also state that, where

businesses identify that they have caused or contributed to adverse human rights impacts,

they should have processes in place to enable remediation (principle 15).46

43. The Guiding Principles on Business and Human Rights provide conceptual and

operational clarity for the two human rights principles of the Global Compact Initiative,47 a

broad-based multi-stakeholder initiative addressed to business, launched in 2000. The

Global Compact brings together Governments, employers, civil society groups and trade

unions, as well as other stakeholders, on the basis of 10 universally accepted principles of

human rights, labour, environment and the fight against corruption. The principles are

drawn from key United Nations and ILO standards, with contemporary forms of slavery

figuring prominently among the categories of human rights and labour rights (principles 1,

2, 4 and 5). Since the Global Compact’s launch, more than 12,000 participants, including

over 8,000 businesses from 145 countries, have joined. The high number of the initiative’s

participants is commendable, but the most obvious gap of Global Compact is in terms of a

follow-up mechanism for monitoring and implementation, since businesses need only to

communicate annually on progress made in implementing the 10 principles.

44. The first initiatives at the international level to address conduct of businesses

emerged in the 1970s. In 1977, ILO adopted the Tripartite Declaration of Principles

concerning Multinational Enterprises and Social Policy (subsequently amended in 2000 and

2006). It commits Governments, employers’ and workers’ organizations and multinational

enterprises to respecting the Universal Declaration of Human Rights and the International

Covenants adopted by the General Assembly. In 2014, the ILO Governing Body adopted an

implementation strategy for a new follow-up mechanism to the Declaration48 (which is not

yet aligned with the Guiding Principles on Business and Human Rights) envisaging public-

private initiatives and technical cooperation, as well as awareness-raising, capacity-

building, country-level support, research and information-gathering.

45. The Organization for Economic Cooperation and Development (OECD) Guidelines

for Multinational Enterprises49 were adopted in 1976 and updated five times, most recently

in May 2011 to include a new chapter on human rights and business consistent with the

Guiding Principles on Business and Human Rights. In the Guidelines, explicit reference is

made to the responsibilities of multinational enterprises in relation to their supply chains.50

A system of national contact points — a non-judicial mechanism that the adhering countries

are obliged to set up — are established thereunder. National contact points contribute to the

45 See ibid., p. 32.

46 See section F.

47 For more information, see www.unglobalcompact.org/. See also OHCHR, “The United Nations

Guiding Principles on Business and Human Rights: Relationship to United Nations Global Compact

Commitments – July 2011 (Updated June 2014)”

(https://www.unglobalcompact.org/docs/issues_doc/human_rights/Resources/GPs_GC%20note.pdf).

48 GB.320/POL/10, 14 February 2014. Available at www.ilo.org/wcmsp5/groups/public/---ed_norm/---

relconf/documents/meetingdocument/wcms_236168.pdf.

49 One of four instruments of the 1976 OECD Declaration on International Investment and

Multinational Enterprises. See http://mneguidelines.oecd.org/text/.

50 See commentary on general policies contained in the OECD Guidelines for Multinational Enterprises,

para. 10 (www.oecd.org/daf/inv/mne/48004323.pdf).

resolution of issues that arise from alleged non-observance of the Guidelines (so called

specific instances mechanism).51 In dealing with specific instances, which are not legal

cases, national contact points must make an initial assessment to determine if the issues

raised merit further examination, assist in resolving the instances through offering good

offices, and make the results of the procedure publicly available. Despite the value of this

grievance mechanism, which is accessible to any interested party, the national contact point

system has been criticized by civil society on multiple counts and specific

recommendations have been provided to strengthen it.52 Business compliance with other

guidelines, for example the Dhaka Principles for Migration with Dignity that relate to

reducing exploitation from the moment of the recruitment process is critical to reducing the

incidence of forced labour and other contemporary forms of slavery at all levels of supply

chains.53

E. Business and stakeholder initiatives to address contemporary forms

of slavery in supply chains

46. Global brands and other transnational corporations operating complex supply chains

that span multiple jurisdictions have increasingly adopted voluntary codes of conduct to

address contemporary forms of slavery in their operations, as well as those of their

suppliers, prompted mainly by reputational risk. The voluntary codes cover a wide variety

of issues, from social and environmental to human rights and anti-corruption. Policies that

clearly prohibit forced labour are now commonplace in codes across companies of different

sizes and operating in different regions and sectors. A key recent innovation is the

development of policies that address recruitment and hiring in labour supply chains by

banning private employment or recruitment agencies supplying workers to facilities in their

supply chains from charging recruitment fees to those workers.54

47. Despite their important role in complementing the normative framework, voluntary

codes of conduct are often bald statements without any independent monitoring

mechanisms and leave numerous gaps in protection if they do not apply to all entities,

especially informal sector and home-based suppliers and subcontractors. However, an

increasing number of steps are being taken to implement voluntary codes, involving a

diverse set of strategies, typically starting with some form of compliance assessment

conducted at workplace level in businesses’ supply chains. These are commonly called

“social audits” and frequently address other standards in addition to human rights issues,

depending on the codes upon which they are based.

48. While businesses continue to rely on social audits as a key element of their human

rights due diligence programmes and to assess their own facilities and those of their

business partners, many believe that auditing has had a limited impact on identifying and

eliminating contemporary forms of slavery from supply chains. New strategies are therefore

required that move beyond auditing and include proactive independent investigations and

robust independent verification, which incorporate consultations with workers with due

51 To date, approximately 300 instances have been addressed by national contact points, covering a

range of issues, including human rights, employment and industrial relations. See

http://mneguidelines.oecd.org/database/.

52 See, for example, OECD Watch, Remedy Remains Rare An analysis of 15 years of NCP cases and

their contribution to improve access to remedy for victims of corporate misconduct (2015)

(http://oecdwatch.org/publications-en/Publication_4201). 53 See also, for example, the ILO Fair Recruitment Initiative and the International Organization for

Migration initiative on ethical recruitment.

54 For example, the Electronics Industry Citizenship Coalition has adopted a “no fees” policy for its

members.

regard to confidentiality and privacy. Consumer and trade union advocacy can play an

important role in ensuring the involvement of workers and their representatives in such

processes. Largely as a result of stakeholder criticism, some companies have already

piloted new protocols that prioritize the confidential testimony of workers and attempted to

develop more robust investigative techniques, sometimes in partnership with civil society.55

49. Company-level grievance mechanisms, which range from complaints boxes to

telephone hotlines, are being created to identify human rights violations and other forms of

abuse. Their effectiveness is often dependent on information exchange between business

peers and companies often rely on multi-stakeholder initiatives to develop efficient

systems.

50. Another strategy in tackling the risk of contemporary forms of slavery in supply

chains relates to transparency and reporting,56 on the one hand, and traceability, on the

other. In both cases, pressure from regulators, civil society actors and investors has pushed

companies not only to disclose information about business relationships in supply chains,

but to implement measures to track products and materials from finished goods to the

commodities level to promote “clean” production at every step of the way. However,

opinion remains divided on the effectiveness of these initiatives in improving conditions for

workers and, in particular, for addressing contemporary forms of slavery.

51. Certification has arisen as another key approach from increased consumer, trade

union and other civil society awareness. The most well-known is the Fairtrade Mark, which

can be found on a wide range of products — over 27,000 — and certifies that those

products meet internationally agreed Fairtrade Standards, including those relating to child

labour and labour rights. 57 In another example, the GoodWeave 58 certification label

provides assurance that no child labour was used in the manufacture of rugs.

52. Given the complexity and span of supply chains, identifying and eradicating

contemporary forms of slavery can be successful only if sustainable and effective multi-

stakeholder partnerships and initiatives involving the authorities, businesses, trade unions,

consumers and other stakeholders, each acting from their own areas of expertise to enforce

mutually agreed goals, are formed. Such initiatives are frequently international in scope,

given the breadth of transnational operations. Some focus on a single sector, industry or

commodity,59 while others are cross-sectoral.60 Others focus on a single issue like child or

forced labour,61 while many typically address a cross-section of labour and human rights

issues alongside the environment and general principles of ethical business.62

55 For example, Apple, Hewlett Packard, Patagonia, Gap Inc., Coca Cola, the Arcadia Group and Philip

Morris International.

56 Voluntary commitments to transparency are, for example, required by companies that use the

framework established by the Global Reporting Initiative.

57 www.fairtrade.net.

58 www.goodweave.org.

59 For example, the Fair Wear Foundation or Fair Labour Association, both of which address apparel

only.

60 Such as Social Accountability International and the Ethical Trading Initiative. The latter developed a

Base Code guiding its members to comply with ILO standards (e.g. fair recruitment, humane working

conditions, decent work and a living wage) as a means of preventing forced labour and other

contemporary forms of slavery (see www.ethicaltrade.org/eti-base-code).

61 Including the Eliminating Child Labour in Tobacco Growing Foundation and the International Cocoa

Initiative. Both participate in the Child Labour Platform, a thematic membership‐based work stream of the Human Rights and Labour Working Group of the Global Compact, opened to companies, other

United Nations agencies, trade unions, business associations and other relevant stakeholders, and

focused on child labour, particularly in supply chains.

62 For example, the Roundtable on Sustainable Palm Oil and the Responsible Jewellery Council.

53. An example of good practice is the multi-stakeholder public-private platform Project

Issara63 initiated by Anti-Slavery International to tackle modern slavery in South-East Asia,

with an initial focus on forced labour in the export-oriented industries of Thailand that

affect global supply chains. Another well-known example of a multi-stakeholder private-

public initiative is the National Pact for the Eradication of Slave Labour in Brazil, which

brings companies together to combat slave labour with the assistance of ILO, non-

governmental organizations (including Repórter Brasil and Ethos) and support from the

Government. Over 400 companies and trade associations had signed the pact as of May

2014, including large companies such as Walmart Brazil, committing not to do business

with people and companies involved with slave labour.64

54. Multi-stakeholder initiatives help to address questions of credibility and

effectiveness that have surrounded business-only and corporate social responsibility

strategies. They offer a more inclusive model as they involve various stakeholders and thus

provide a long-term solution to addressing risks to contemporary forms of slavery in supply

chains. Those multi-stakeholder platforms that are genuinely premised on social partnership

and involve trade unions have the additional benefit that they can ensure collaboration

across a number of initiatives including public-policy advocacy and grievance resolution.

55. Investors have also begun to play an increasing role in requiring human rights due

diligence.65 Furthermore, civil society actors have been at the forefront of challenges to

contemporary forms of slavery in supply chains66 and civil society “naming and shaming”

of companies has resulted in some businesses responding positively by adopting or

adjusting their policies and practices.67 A welcome initiative in the reporting context is the

recently launched United Nations Guiding Principles Reporting Framework, which

provides guidance for companies to report on how they respect human rights.68

F. Corporate legal liability and access to remedies in cases involving

contemporary forms of slavery in supply chains

56. States have a duty under international human rights law to ensure the right to a

remedy, including equal and effective access to justice and adequate, effective and prompt

reparations for human rights violations. For victims of gross violations of international

human rights law, such as slavery and slavery-like practices, full and effective reparation

may take the following forms: restitution, compensation, rehabilitation, satisfaction and

guarantees of non-repetition.69 In the third pillar of the Guiding Principles on Business and

63 www.projectissara.org.

64 For signatories, see www.pactonacional.com.br

65 The Interfaith Centre on Corporate Responsibility “No fees” Initiative targets the risk of debt bondage

faced by migrant workers resulting from fee-charging for recruitment and employment services and

uses the strength and influence of investors to target 12 companies in the palm oil and seafood sectors

to clearly demonstrate their commitment to respect human rights (www.iccr.org/no-fees-initiative).

66 A well-known example is the Coalition of Immokalee Workers, which mobilized consumers in the

Campaign for Fair Food and led to successful prosecutions for slavery on tomato farms in the United

States.

67 For example, after a report by the Fair Labor Association that Nestlé was using child labour in its

cocoa supply chain, the company strengthened its Nestlé Cocoa Plan, adopting all recommendations.

(The case is cited together with other examples in the International Corporate Accountability

Roundtable, “Persisting Harm: Corporate Responsibility and Accountability for Human Trafficking

and Slavery” (forthcoming, on file).)

68 See www.ungpreporting.org. Early adopters include Unilever, Nestlé, H&M and Newmont.

69 Right to an effective remedy for violations of international human rights law can be found in a

number of international and regional instruments. See also Basic Principles and Guidelines on the

Right to a Remedy and Reparation for Victims of Gross Violations of International Human Rights

Human Rights, clear guidance is set out on “access to remedy”, delineating respective roles

for both States and business.

57. Prior to that, principle 22 in the second pillar states that where businesses identify

that they have caused or contributed to adverse human rights impacts, they should provide

for or cooperate in their remediation through legitimate processes. Where businesses have

not caused or contributed to harm but it is directly linked to their operations, products or

services by a business relationship, they are encouraged to take a role in providing

remediation. In terms of operational principles under the third pillar, the Guiding Principles

on Business and Human Rights, call on companies to establish or to participate in effective

operational-level grievance mechanisms for those adversely impacted by them, so that

grievances can be addressed early and remediated directly (principle 29). Such mechanisms

are typically administered by enterprises, alone or in collaboration with other relevant

stakeholders. They can be important complements to wider stakeholder engagement and

collective bargaining processes, but cannot substitute for either, and can also make it

possible to prevent harm from compounding or escalating. To ensure their effectiveness,

the Guiding Principles on Business and Human Rights state that the operational-level

grievance mechanisms should be legitimate, accessible, predictable, equitable, transparent,

rights-compatible, a source of continuous learning, and based on engagement and dialogue

(principle 31). There are already some good practice examples of operational-level

grievance mechanisms.70

58. As part of its duty to protect against business-related human rights abuses, the State

is required to take appropriate steps to ensure that those affected have access to effective

remedy when abuses occur within their territory and/or jurisdiction and to reduce barriers

that could lead to a denial of this access. In the Guiding Principles on Business and Human

Rights, it is indicated that this is to be achieved primarily through State-based judicial

mechanisms and non-judicial grievance mechanisms, which are complementary in nature

(principles 25–27). States are also encouraged to consider ways to facilitate access to

effective non-State based grievance mechanisms that can have the benefit of reduced costs,

increased speed of access and transnational reach, where States may be more limited. These

may be non-judicial business, industry or multi-stakeholder mechanisms; or they may be

regional or international human rights bodies (see principle 28).

59. For victims of contemporary forms of slavery, including those in supply chains,

remedies may include compensation, medical and psychological care, free legal aid and

social services, effective measures aimed at the cessation of continuing violations and

alternative livelihood support measures. However, the right to an effective remedy for

many workers, in particular the most vulnerable in supply chains, remains largely elusive

and redress for corporate human rights violations is hampered by many barriers, including

the high costs of litigation and a lack of a free legal aid. Moreover, the victims, especially if

not members of trade unions, may not be aware that their rights have been violated. In

extreme instances, workers may be enslaved and physically unable to enforce their rights.71

Law and Serious Violations of International Humanitarian Law.

70 See for instance, International Petroleum Industry Environmental Conservation Association for an

example in the global oil and gas industry (“Operational level grievance mechanisms: good practice

survey”, www.ipieca.org/publication/operational-level-grievance-mechanisms-good-practice-survey).

71 For a comprehensive account of barriers to access to remedies, see Gwynne Skinner and others, The

Third Pillar: access to judicial remedies for human rights violations by transnational businesses

(2013, International Corporate Accountability Roundtable). The report seeks to understand which

barriers are most insurmountable for victims of abuses of human rights by transnational business and

to provide recommendations for each of the jurisdictions examined regarding how the States can

better fulfil their duty to reduce these barriers. On the right to an effective remedy, see also the

OHCHR initiative on enhancing accountability and access to remedy in cases of business

60. Given the gravity of slavery and slavery-like practices as gross human rights

violations, judicial remedies are a key form of securing accountability for business-related

human rights abuses. Access to justice for victims in this context is, however, often

constrained by legal rules limiting the liability of a corporation for human rights violations

not directly arising from its business operations. This is a problem in global supply chains

whereby the business enterprise sourcing the product is not directly implicated in the

exploitation that occurs lower down the supply chain, but is complicit as a result of failing

to comply with its human rights due diligence obligations. Also, vicarious liability rules

prevent corporate liability for management conduct in many instances which arise in the

disarticulation in the supply between the global retailer and the many small subcontractors

at the lowest tier.

61. In the context of supply chains, a lack of extraterritorial jurisdiction affects access to

remedies for contemporary forms of slavery and other human rights violations, which are

committed outside the territory in which a business is domiciled. In this context, the United

States Supreme Court held, for example, in Kiobel v. Royal Dutch Petroleum, Co., that the

presumption against the extraterritorial application of United States law applies to the Alien

Tort Statute,72 and this can only be overcome if the claim “touches and concerns” the

territory of the United States “with sufficient force” to displace the presumption against

extraterritorial application.

G. Some challenges and gaps to ensuring the accountability of States and

businesses for contemporary forms of slavery in supply chains

62. Despite notable improvements in recent years, gaps in legal and regulatory

protection for the human rights of victims of contemporary forms of slavery exist in a

number of countries. This has a significant impact on enforcing corporate legal liability.73

In many cases, States also lack an integrated approach to criminal, labour and human rights

laws, which impedes law enforcement and prevents effective investigation and prosecution

of abuses. Where the legislative framework does exist, in some instances this is affected by

lengthy legal proceedings and corruption, including bribery, which means that access to

remedy is slow and victims are reluctant to come forward as a result.

63. In other cases, some legal jurisdictions are part of the problem, exacerbating the

vulnerability of workers to contemporary forms of slavery. This is the case in countries

where laws tie migrant workers to specific employers, preventing them from leaving

without the employer’s authorization. In some countries, for example, certain categories of

workers are not guaranteed their right to freedom of peaceful assembly and association and

thus not allowed to form or join trade unions or hold office within them, which adds to their

vulnerability.

64. It also remains a challenge for transnational businesses with complex supply chains

to conduct human rights due diligence on all levels of their supply chains, particularly

where they have no direct business relationship with subcontractors.74 The same applies for

involvement in human rights abuses

(www.ohchr.org/EN/Issues/Business/Pages/OHCHRstudyondomesticlawremedies.aspx), progress

report of the United Nations High Commissioner for Human Rights on legal options and practical

measures to improve access to remedy for victims of business-related human rights abuses

(A/HRC/29/39) and A/HRC/17/35.

72 Available at www.supremecourt.gov/opinions/12pdf/10-1491_l6gn.pdf.

73 See International Corporate Accountability Roundtable, “Persisting Harm”.

74 In the commentary to principle 17 of the Guiding Principles on Business and Human Rights, it is

acknowledged that, where businesses have large numbers of entities in their value chains it may be

labour supply chains, the informal economy and the production, harvesting or extraction

that occurs at the commodities level of the global economy.

65. A key gap is the lack of research and data in identifying the exact scope and

prevalence of contemporary forms of slavery in specific supply chains and related to

particular commodities, as well as its prevalence in the informal sector, which could enable

strengthened and targeted policy and normative response and practical strategies. More

research and data is also needed on domestic supply chains.75

66. Global businesses have the capacity and resources to address, jointly with relevant

stakeholders, the root causes of contemporary forms of slavery, particularly structural

issues relating to discrimination, poverty and inequality and should use this leverage more

prominently.76 There is also the need for increased dialogue and cooperation among all

stakeholders working on the issue of contemporary forms of slavery in supply chains, also

within the international community, in order to combine their efforts to ensure its

eradication, including in relation to the 2016 International Labour Conference general

discussion on the issue of decent work in global supply chains.

IV. Conclusion and recommendations

67. The present report provides an indication of some of the challenges in enforcing

accountability of States and businesses for preventing, mitigating and redressing

contemporary forms of slavery in supply chains. The framework emerging from the

United Nations system has provided greater clarity on how to operationalize the

responsibility of business to respect human rights, including through conducting

human rights due diligence, and the obligations of States to address business-related

human rights abuses. The passing of national laws, which reflect an increasing global

concern with transparency, reporting and human rights due diligence obligations that

add to the accountability tool belt, is to be applauded. So are the businesses’ human

rights policy commitments, although loopholes exist in terms of their enforcement,

and the important role played in the combat against contemporary forms of slavery in

supply chains by other stakeholders, including civil society actors, such as non-

governmental organisations, trade unions, foundations and consumers, as well as

international organizations and the media. While these developments are notable,

important gaps still exist in terms of effective access to justice and adequate and

prompt remediation for victims of contemporary forms of slavery in supply chains.

68. Against this backdrop, the Special Rapporteur wishes to make the following

recommendations to States:

(a) States should ratify all relevant international instruments prohibiting

slavery and slavery-like practices, including the Protocol of 2014 to the Forced

Labour Convention, 1930 (No. 29), align their domestic legislation with international

unreasonably difficult to conduct due diligence for adverse human rights impacts across them all. If

so, business enterprises should identify general areas where the risk is most significant, whether due

to certain suppliers’ or clients’ operating context, the particular operations, products or services

involved, or other relevant considerations, and prioritize these for human rights due diligence.

75 In this context it is noteworthy that the Freedom Fund has provided a grant to Focus on Labour

Exploitation (FLEX) to develop a Modern Slavery Accountability Database, an online database of

national laws and regulations on individual and corporate accountability for modern slavery.

76 The Working Group on the issue of human rights and transnational corporations and other business

enterprises, in its report, addressed the role business can play in the finalization of the proposed

sustainable development goals (A/HRC/29/28).

standards, criminalize all contemporary forms of slavery and provide adequate

penalties for violations;

(b) States should develop, enact and update a national action plan on

business and human rights in accordance with the guidance provided by the Working

Group on the issue of human rights and transnational corporations and other business

enterprises. Measures outlined in the national action plan should take full advantage

of the leverage home States have in order to effectively prevent, address and redress

extraterritorial human rights harms of businesses domiciled in their territory and/or

jurisdiction;

(c) To support effective implementation of domestic laws, States should

strengthen their institutional frameworks and enforcement mechanisms across

relevant structures, including labour inspectorates, the judiciary and prosecution,

through provision of continued capacity-building, awareness-raising and adequate

human and financial resources;

(d) In addition to adoption and effective enforcement of human rights and

labour laws, such as those ensuring the right to freedom of peaceful assembly and

association and providing for minimum labour standards, States bear a fundamental

duty to address the preventive aspect of contemporary forms of slavery through

tackling its root causes, including poverty, discrimination, stigmatization, inequality

and social exclusion of groups most vulnerable to slavery and slavery-like practices,

by adopting a human-rights based approach and incorporating a gender perspective;

(e) States must ensure that those affected by business-related human rights

abuse, including victims of forced labour and other contemporary forms of slavery,

have the right to an effective remedy by taking appropriate steps to ensure the

effectiveness of judicial mechanisms, providing effective and appropriate non-judicial

grievance mechanisms, facilitating access to effective non-State-based grievance

mechanisms and reducing barriers that could deny access to remedy for victims;

(f) States are strongly encouraged to adopt effective legislation requiring

transparency in supply chains, human rights due diligence throughout supply chains,

public reporting and disclosures of businesses, as well as measures relating to

procurement practices, and to guarantee its implementation;

(g) States should explicitly prohibit fraudulent and abusive recruitment

practices that are one of the main causes of contemporary forms of slavery in supply

chains and adopt measures to regulate recruitment;

(h) States should invest in research and collection and analysis of data on the

scope and prevalence of contemporary forms of slavery in supply chains, specific

commodities, sectors, the informal economy and in domestic production as the

foundation for effective policy and strategy formulation by both public and private

sector actors;

(i) Special attention of States should be given to the risk of contemporary

forms of slavery in the informal economy, including by identifying at risk sectors and

conducting effective labour inspections;

(j) States should consider different strategies to promote voluntary

initiatives, especially multi-stakeholder public-private partnership platforms, which

include Governments at all levels, civil society actors, including trade unions, business

representatives and other stakeholders. These are crucial to effectively and holistically

address contemporary forms of slavery in supply chains and can, inter alia, foster

dialogue on policies to best tackle its root causes, provide an institutional framework

to develop and implement supply chain strategies, grievance mechanisms and

remediation, advocacy on legal and public policy reform, as well as to promote

certification and independent investigation. Community- and area-based approaches,

which do not target a single crop or commodity, are a key form of a partnership.

69. In relation to businesses, the Special Rapporteur recommends the following:

(a) Businesses should adopt human rights policy commitments and conduct

continuous human rights due diligence in line with the framework established in the

Guiding Principles on Business and Human Rights, and include the findings of the

latter in their policies and procedures aimed at eliminating contemporary forms of

slavery from supply chains;

(b) Human rights policy commitments and supporting policies and

procedures should be complemented by effective implementation which moves beyond

auditing, and includes third party independent monitoring, proactive investigations,

random unannounced assessments that prioritize confidential consultation with

workers and strategies linked to prevention of unethical recruitment in supply chains;

(c) All businesses’ human rights policies and procedures and the systems to

implement them should integrate measures reaching beyond the first tier in supply

chains and include clear guidelines and indicators to assist those operating at the

lower tiers and in the informal economy to identify human rights violations, including

contemporary forms of slavery, and ensure compliance with international human

rights standards;

(d) Transparency in supply chains is important for ensuring corporate

accountability for human rights abuse. Businesses should publicly report on action

undertaken to address their human rights impacts, including preventive and

corrective measures, and share lessons learned and strategies for improvement;

(e) Businesses should provide for or cooperate in remediation by

establishing or participating in an operational-level grievance mechanism, in

accordance with the Guiding Principles on Business and Human Rights, and

cooperate with State-based judicial and non-judicial grievance mechanisms. The

approach adopted by businesses in providing for a timely and effective remedy should

be community-based and inclusive of, for example, public and/or non-governmental

service providers with expertise in working with victims of contemporary forms of

slavery;

(f) Gaps in national legislation and underdeveloped regulatory

infrastructure can pose significant risks for contemporary forms of slavery in supply

chains. To address this, businesses, working in partnership with business peers and

other stakeholders or though representative industry and employer organizations,

should engage public policy actors and regulators to encourage adoption of a relevant

legal framework and effective law enforcement. Businesses, together with other

stakeholders, also have an important role to play in addressing the root causes of

contemporary forms of slavery;

(g) Business should engage in capacity-building to ensure management and

staff, as well as the relevant business partner, awareness-raising on the nature and

risks of contemporary forms of slavery in supply chains and the strategies for its

eradication.

70. The Special Rapporteur would like to make the following recommendations to

other stakeholders:

(a) International organizations and the donor community have an important

role to play in providing a forum for stakeholder dialogue and partnership to address

contemporary forms of slavery in supply chains and to empower communities. They

are encouraged to assist the States and other actors, if needed, by providing technical

assistance for research, capacity-building, remediation and for addressing root causes

through human rights-based development and poverty reduction programmes;

(b) Investors should use their leverage to exercise pressure on businesses to

respect human rights, raise awareness of the risks of slavery and slavery-like practices

in supply chains, build capacity, invest in research and data collection and analysis,

and ensure that businesses establish relationships with other relevant actors, including

through multi-stakeholder platforms;

(c) Consumers should play a more active role in scrutinizing the origin of

products and promoting ethical sourcing and other fair trade initiatives;

(d) Trade unions and their confederations have a key role to play in

ensuring that the human rights of workers are complied with by States and

businesses;

(e) Other civil society actors, including foundations, and academia, and the

media should continue to conduct research, investigate and report on human rights

violations in supply chains, highlight areas of non-compliance with international

human rights norms and standards and call for an effective and prompt action by

those responsible.