A Legal Obligation on UK Employers to Conduct Labour Law Due Diligence: A Substantive Proposal

Abstract The use of non-financial reporting and due diligence legislation to force companies to address specific adverse effects of their operations has become an increasingly common tool for policymakers in recent years. To date, international legislative activity has mainly focussed on potential breaches of human rights and environmental obligations but has also included aspects of labour law. This article proposes a new law that adapts the concept of corporate due diligence to the field of labour law. The new law uses a reflexive model of legislation which is referred to as Labour Law Due Diligence. The under-resourced system of labour market enforcement in the UK and workers’ reluctance to use litigation to defend their rights means that persistent non-compliance by employers can go unpunished. Employers would be obliged to carry out an annual audit to assess whether they comply with key labour law obligations and make the results public. Non-compliant employers would need to remedy any unlawful practices within a year or face the prospect of enforcement action being taken against them. Through an evaluation of UK legislation which has attempted to force companies to address specific legislative goals through public disclosure of data, the article seeks to address the weaknesses of such legislation by involving stakeholders and introducing robust systems of enforcement.