Child Labor Due Diligence Act

Reporting
- Companies must submit a statement to the regulatory authority declaring they have carried out due diligence related to child labor throughout their full supply chain
- The law does not require an annual statement. The statement must be submitted once as it has long-term validity.
- The competent authority can consider joint plans of actions.
  All statements will be published on the website of the competent authority
Due Diligence
- Assess whether there is presumption of child labor within the company’s supply chain as defined by the ILO and IOE in the ‘Child Labor Guidance for Business’- a guide based on the UNGPs
- If there is a presumption of the use of child labor, the company must draw up an action plan to prevent this impact in line with international guidelines (UNGPs or OECD Guidelines)

Human Rights
- Covers child labor meaning work performed by anyone under the age of 15 (or subject to compulsory schooling) and by anyone under the age of 18 if it endangers the health, safety and morality of those performing it
Environment
Broad ranging
- Focused on child labor as defined by Article 3 of the 1999 ILO Convention on the Worst Forms of Child Labor and the 1973 ILO Convention on Minimum Age if ratified by the state where the work takes place

Own Operations
- Duty to investigate whether there is reasonable suspicion that goods or services to be supplied to Dutch end-users have been produced using child labor
Subsidiaries
Direct Suppliers
Indirect Suppliers
Full Value Chain

Large Companies
- Applies to any company, wherever incorporated, that delivers products and services to the Dutch market two or more times a year
SMEs
- No general exemption for SMEs
- Categories of companies may be exempted by General Administrative Order, yet the size of a company will not necessarily determine whether it is exempt
All sectors

Monitoring
- No active enforcement of the competent authority, only complaints from third-party will trigger enforcement
- The competent authority can provide instructions and time frame requirements for companies that fail to conduct due diligence
Administrative Sanctions
- Companies that fail to submit a statement will be fined up to € 4,100
- If a company is fined twice within five years, the next violation can lead to imprisonment of the responsible director or a fine of up to 10% of the company’s annual revenue
Other

Civil Liability
Facilitating Access to Justice
- Any natural or legal person can file a complaint with the regulator if there is concrete evidence that a company’s products or services were produced with child labor
- Complaints must first be submitted to the company and if the company’s reaction is ‘inadequate’ the case may be brought to the regulator
Other

Expected to enter into force in mid-2022
Four Dutch political parties (ChristenUnie, GroenLinks, PvdA and SP) submitted a bill titled ‘Responsible and Sustainable International Business Conduct’ which if passed will replace the Child Labor Due Diligence Act

Law