Combating child labour: sustainable practices in the corporate sector

June 12 - World Day Against Child Labour, June 1 - International Children's Day, November 20 - World Children's Day - all these dates are actively celebrated all over the world. Nevertheless, the problem of child labour remains relevant.

The term ‘child labour’ should not be confused with ‘youth employment’ or ‘student work’. Child labour is a form of exploitation that is a violation of human rights, and it is recognised and defined by international instruments. The international community and almost all governments have declared policies to abolish child labour. While the term ‘child’ covers all girls and boys under the age of 18, not all children under the age of 18 should be excluded from work: basic rules in line with international standards distinguish what is acceptable or unacceptable work for children at different ages and stages of development. Lower ages are allowed for transitional periods - in countries where economic and educational opportunities are less developed, the minimum age for permanent work is usually 14 and for ‘light work’ 12. The minimum age for hazardous work is higher, at 18 years for all countries.

Conventions of the International Labour Organization ‘Minimum Age Convention’ No. 138 of 26.06.1973 and ‘Convention concerning the Worst Forms of Child Labour’ No. 182 of 01.06.1999 provide the basis for national legislation establishing a minimum age for admission to employment or work, which should not be lower than the age of completion of compulsory schooling and in any case not lower than 15 years of age.

Child labour has a negative impact on a child's physical, social, mental, psychological and spiritual development, as work at too early an age can cause significant damage to health and hinder the full development of the personality. Such labour deprives children of their childhood, their right to education and sometimes separates them from their parents and family. Without quality primary education, children are likely to remain illiterate and unable to acquire the necessary skills for future employment. This results in unskilled workers, which negatively affects the economy in the future by threatening the prospects for upskilling the labour force.

Combating Child Labour in Uzbekistan: Legislative Initiatives and Corporate Responsibility

Uzbekistan has made significant progress in combating child labour in recent years, actively introducing new legislative initiatives and developing sustainable practices in the corporate sector. Child labour has remained a pressing issue for the country for many years, especially in the agricultural sector. However, thanks to the joint efforts of the government, international organisations and the private sector, Uzbekistan has begun to successfully reduce child labour.

Legislative measures to combat child labour

One of the key steps in this fight has been the adoption of a number of important laws and regulations aimed at protecting children's rights. First of all, the Labour Code of 30.04.2023, which regulates the minimum age of employment and establishes strict restrictions on the employment of minors, is worth mentioning. According to the Code (article 354), persons under the age of 18 may not work in hazardous or unhealthy industries and must have limited working hours.

In 2008, Uzbekistan ratified the International Labour Organization (ILO) conventions on child labour - No. 182 ‘Convention concerning the Most Inadmissible Forms of Child Labour’ and No. 138 ‘Minimum Age Convention’. Uzbekistan has also ratified such ILO conventions as No. 29 on forced labour and No. 105 on the eradication of forced labour. According to the standards set out in these documents, it is prohibited to use the labour of persons under 18 years of age in work that may harm their health, and it is also prohibited to use them for administrative labour.

On 22 January 2020, the Act on amendments and additions to certain legislative acts of the Republic of Uzbekistan entered into force, introducing criminal liability for the use of child labour.

The Act amended and supplemented more than 10 legislative acts. In particular, the Criminal Code has been supplemented with articles providing for liability for violation of requirements on the inadmissibility of the use of underage labour and administrative coercion to work. According to the law, the use of a minor's labour in work that may harm his or her health, safety or morals, committed after the application of an administrative penalty for the same act, is punishable:

-       a fine of up to 25 basic calculation units;

-       deprivation of a certain right for up to 3 years;

-       correctional labour for up to 3 years.

Significant changes have also been made to education legislation. In order to prevent the involvement of children in labour processes, the State has placed emphasis on making education more accessible and compulsory. According to the current Law of the Republic of Uzbekistan ‘On Education’ No. LRU-637 of 23 September 2020 (Articles 44 and 50 of the Constitution of the Republic of Uzbekistan), school education in Uzbekistan is compulsory for all children up to the age of 18, which significantly reduces the risk of their early involvement in labour relations.

State programmes and initiatives

In addition to adopting new legislation, the Government of Uzbekistan is implementing a number of initiatives aimed at combating child labour and protecting children's rights. One of the key initiatives is the ‘National Programme to Combat Child Labour’, developed in 2008 by the Ministry of Labour and Social Protection in cooperation with the International Labour Organization, which monitors the situation on the ground, provides training for employees of enterprises, and regularly organizes public information campaigns on children's rights.

Special attention is also paid to combating child labour as part of the Sustainable Development Goals (SDGs). The Voluntary National Review of the National Sustainable Development Goals and Targets of Uzbekistan until 2030 highlights the country's commitment to the total elimination of all forms of child exploitation, which is linked to the implementation of SDG 8.7 aimed at eliminating child labour. The review highlights the Government's intention to strengthen cooperation with international organisations and develop national programmes to achieve this goal by 2030.

Cooperation with international organizations such as ILO and UNICEF, which support Uzbekistan in developing and implementing effective strategies to eliminate child labour, plays a significant role in this work. Regular monitoring and assessment of the situation make it possible not only to identify violations but also to take the necessary measures to eliminate them in a timely manner.

During a tripartite roundtable held remotely in February 2021, the following four priorities were identified for the new ‘Child Labour Prevention Strategy (CLPS)’ for 2021-2025:

- Improving the legal and regulatory framework governing labour relations;

- Increased employment and decent work opportunities for youth, women and vulnerable groups created by inclusive and equitable economic growth;

- Improved access of the most vulnerable groups to quality and inclusive learning and social protection;

- Strengthening social dialogue and institutional capacity of social partners.

Corporate Responsibility and Sustainable Practices in Uzbekistan

The private sector also plays an important role in combating child labour. Many companies in Uzbekistan, especially in the agricultural sector, have started to introduce corporate standards and sustainable practices aimed at preventing child exploitation. In particular, companies in the cotton industry have been among the first to commit to international human rights and labour standards.

Business transparency and accountability are key to this process. In cooperation with governmental and international organisations, many companies are implementing systems to monitor and control compliance with children's rights. The introduction of corporate codes of ethics and participation in international initiatives, such as the Cotton Campaign, aimed at eradicating child labour not only helps to strengthen the reputation of companies, but also to attract responsible investors.

Combating child labour in Uzbekistan is a complex and multi-layered process that requires efforts on the part of both the state and the private sector. Legislative initiatives, cooperation programmes with international organisations, and efforts by the corporate sector to introduce sustainable practices have already yielded significant results. However, continued focus and development of the legal framework is required to fully eradicate child labour in the country.

Practices in the corporate sector to combat child labour globally

Being associated with child labour is likely to cause reputational damage to companies. This is particularly true in the case of multinational companies with extensive supply and service chains, where the economic exploitation of children, even by a business partner, can damage brand image and have serious consequences for profits and shareholder value.

Children have the same human rights as adults. But because of their age and the fact that they are still growing and gaining knowledge and experience, they have some special rights as children. These rights include protection from economic exploitation and work that may be hazardous to their health, safety or morals and that may hinder their development or prevent them from accessing education. The complexity of child labour means that companies must address the issue sensitively and must not take actions that may force child workers into more exploitative forms of work. Nevertheless, the goal of all companies should be to eliminate child labour from their sphere of influence.

Developing awareness and understanding of the causes and consequences of child labour is the first step companies take to combat child labour. This means identifying the issues and determining whether child labour is a business problem. Companies purchasing in certain industry sectors with geographically dispersed supply chains need to be particularly vigilant. However, child labour also exists less visibly in developed, industrialised countries where it does occur, such as in some immigrant communities.

Finding out whether child labour is being used can be difficult, for example if there are no documents or records, and companies may consider involving local NGOs, development organisations or UN agencies to assist in this process.

If a case of child labour is identified, children should be removed from work and offered acceptable alternatives. These measures often include enrolling children in schools and offering alternative income-generating options for parents or family members above working age.

Company practices and activities to counter child labour:

- Examine countries, regions, sectors, economic activities where there is a high likelihood of child labour. Responding to identified cases of child labour appropriately through national policies and international procedures and standards.

- Complying with the minimum age provision in national labour laws and regulations and, where national legislation is insufficient, using international standards.

- Use of adequate and verifiable mechanisms for age verification in employment. If children below the legal age for employment are found in the workplace, applying measures to remove them from the workplace.

- Developing and implementing mechanisms to identify child labour, especially in regions and areas at high risk of child labour.

- Influencing subcontractors, suppliers and other business partners to combat child labour

- Collaborating and partnering with other companies, industry associations and employer organisations to develop a sector-wide approach to address the issue and liaising with trade unions, law enforcement agencies, labour inspectorates and other organisations involved.

In regions and sectors at high risk of child labour, the following activities are recommended:

- Establishing or participating in a child labour committee in a representative employer organisation at the local, state or national level.

- Support and assist in the development of educational/vocational training and counselling programmes for child labourers, as well as a skills training programme for parents of child labourers.

- Encourage and assist in launching additional health and nutrition programmes for children removed from hazardous work and provide medical assistance to treat children for occupational diseases and malnutrition.

ESG and the rise of socially responsible investment

ESG policies prohibiting child labour: an organisation may have a sustainable business practices programme, and this is a great start, but ESG programmes are comparatively more holistic. Companies should ensure that their environmental, social and governance policies and codes of conduct are transparent and comprehensive, and explicitly prohibit forced and child labour. ESG programmes should incorporate the International Labour Organisation's labour standards, and businesses should ensure that their programme has a Supplier Code of Conduct that talks about how to buy things ethically and environmentally responsible.

The rise of socially responsible investing (SRI) and ESG assessment metrics has changed the landscape around this issue. The major ESG rating agencies (MSCI, Sustainalytics, S&P Global, Refinitiv, Bloomberg, FTSE Russell, ISS, Moody's and others) include sustainability in their ESG assessment matrices. Since eliminating forced child labour is one of the UN Sustainable Development Goals (SDGs), a rating agency that gives a high score to a company that uses forced child labour anywhere in its supply chain risks becoming irrelevant.

Companies with good ESG scores are perceived as better at anticipating future risks and opportunities, with superior long-term strategic thinking and value creation. Receiving a low ESG rating has a cascade of negative consequences for a company's financial health, including exclusion from investment portfolios and falling share prices. Expenses rise as risk management costs increase and the negative impact on their public image can lead to a decline in their market share and revenues.

Research has documented that implementing progressive child labour policies in the supply chain has an overall positive impact on revenues. There is no longer any excuse for forced child labour in any company's supply chain. And ESG rating services will penalise any company that allows this practice to continue. Clearly, companies can no longer afford to ignore the use of forced child labour in their supply chains. This is not only bad for children, but also bad for business. Thus, companies that are successful and receive high ESG scores must constantly fight forced child labour, which will lead to an increase in socially responsible investment also in society as a whole.