Child Labor Due Diligence Act

  • Updated

LAW DETAILS

COUNTRY
Netherlands
CATEGORY
International Trade: Human Rights Due Diligence
LEGAL CODE TITLE
Child Labor Due Diligence Act
LEGAL CODE REFERENCE
Staatsblad 2019, 401
REVISION DATE
November 13, 2019
LEGAL JURISDICTION
National / International
FACILITY APPLICABILITY
Brands and Retailers
LAW REQUIREMENT TYPE
Disclosure & Due Diligence
FREQUENCY
Ongoing

SUMMARY OR KEY PROVISION OF THE LAW

The Netherlands’ Senate approved the Child Labor Due Diligence Act (Act) in 2019 but it awaits royal approval before going into effect. This Act will apply to all companies that sell or supply goods or services to Dutch consumers, regardless of the registration or the domicile of the company. The Act requires companies to submit a statement that they have applied due diligence to assess whether a “reasonable suspicion” exists that the services or goods supplied have come been produced with child labor in their value chains. If a “reasonable suspicion” is found, the company must adopt and implement a plan to address the child labor. Companies must also investigate child labor in their supply chain using sources that are reasonably known and accessible. 
 

LEGAL CONSEQUENCES FOR NON-COMPLIANCE

Companies that fail to comply with the law can face fines up to €870,000 or ten percent of worldwide revenue and there is criminal liability for the director.
 

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