Netherlands Joins Growing Number of Countries With Forced Labor Prohibitions

The Dutch Senate approved legislation that requires companies to examine and prevent the use of child labor in supply chains, the Netherlands announced on May 14. According to an alert from the Akin Gump law firm, "the Dutch law requires companies doing business in the Netherlands or those who provide goods or services to Dutch consumers -- including only through online means, if there is explicit targeting of the Dutch market -- to assess their supply chains to identify any child labor risks and then develop diligence and action plans to address and mitigate any such risks they find."

The approval follows a recent international trend of countries requiring corporate due diligence in keeping supply chains free of forced labor. Akin Gump notes that the U.S., the United Kingdom, France and Australia have also adopted measures on forced labor, and Canada has a bill that would "block imports to Canada of goods manufactured or produced by forced or child labor." The Dutch law "goes beyond the other jurisdictions in the scope of its applicability," Akin Gump said. "The Dutch law furthermore requires companies subject to it to look beyond direct suppliers in their assessments and plans, similar to the Australian law. Companies subject to the Dutch law must submit declarations regarding their plans and efforts, which will be publically posted."