Contract Labour Management under New Labour Codes: Compliance, Audit and Beyond

Introduction

Collaborations within supply chains—between multinational corporations in the Global North and their suppliers in the Global South—have expanded significantly with the rise of globalization. While governments in the Global South support these partnerships to spur employment and economic growth, many organisations view labour laws as costly and burdensome, potentially affecting profitability and management strategies. Consequently, employers in the Global South frequently look for ways to avoid compliance and violate labour laws.

However, such violations of labour laws do little to benefit multinational corporations in the Global North. Firms that fail to comply with regulations in these regions are exposed to penalties, fines, legal action, reputational damage, and, in severe cases, even closure. Labour compliance requirements extend across the entire supply chain—covering the firm’s own business units, as well as its direct and indirect suppliers. Therefore, adhering to labour laws is not merely a legal obligation; it is also a strategic necessity that can significantly influence a company’s operations, reputation, and long-term success.

Private entities, including businesses and non-governmental organisations, can integrate legal compliance with codes of conduct—frameworks comprising guidelines, processes, and best practices that apply across borders. Aligning compliance with labour laws and progressive codes of conduct enables organisations to mitigate risks and maintain their credibility in the industry.

Companies in the Global South are increasingly recognizing that reducing fragility and ensuring fair returns for their workforce are essential for industry growth and improvement. While flexibility is beneficial for both workers and companies, it should not result in exploitation at the lower end of the economic pyramid. For those looking to build future-oriented businesses, this new paradigm presents an opportunity to create robust, win-win models that align the growth of workers with that of businesses, paving the way for new possibilities.

It also helps companies break out of their race to the bottom with labour protection and wellbeing—an aspect of business that constitutes less than 5% of sales for businesses—and allows for the development of a more win-win equation that unfolds new possibilities and assets for the business. This programme will help organisations achieve all these goals.

This programme is designed to help organisations achieve these outcomes and build future-ready systems for contract labour governance.