Expert Guide on Human Rights and Forced Labour in India

India has a broad legal framework addressing forced labour, human trafficking, and labour exploitation. Unlike jurisdictions such as the UK or Australia, India does not have a single consolidated statute governing forced labour, human rights, and modern slavery. Instead, the framework is derived from constitutional provisions, criminal law, labour legislation, and international commitments.

• Constitution of India: The Constitution provides the foundational protections against forced labour and exploitation. Article 23 prohibits trafficking in human beings, begar and other forms of forced labour, Article 24 prohibits the employment of children below 14 years in hazardous occupations and Article 21 guarantees the right to life and personal liberty. 

In People’s Union for Democratic Rights v Union of India (1982 3 SCC 235), the Supreme Court of India held that compelling a person to work for wages below the statutory minimum constitutes forced labour under Article 23 of the Constitution.

• Criminal law (Bharatiya Nyaya Sanhita, 2023 (BNS): This statute establishes the criminal framework addressing trafficking and forced labour. It criminalises trafficking of persons (Section 143), exploitation of trafficked individuals (Section 144), habitual dealing in slavery (Section 145), and unlawful compulsory labour (Section 146).

• The Juvenile Justice (Care and Protection of Children) Act, 2015, which criminalises trafficking, exploitation and forced labour involving children.
• The Bonded Labour System (Abolition) Act, 1976 (“Bonded Labour Act”), abolishes bonded labour and extinguishes bonded debts.
• The Child and Adolescent Labour (Prohibition and Regulation) Act, 1986, as amended in 2016, prohibits the employment of children below 14 years in all occupations and restricts adolescents from working in hazardous processes. 
• Labour law framework: India’s labour law framework has been consolidated into four Labour Codes, namely, (i) Code on Wages, 2019 (“Wage Code”); The Industrial Relations Code, 2020 (“IR Code”); The Code on Social Security, 2020 (“SS Code”); and The Occupational Safety, Health and Working Conditions Code, 2020 (“OSH Code”). The Labour Codes regulate minimum wages, basic working conditions, providing safety standards, and social security. We have highlighted these Codes because they help in promoting fair labour practices. 
• Human rights institutions: The Protection of Human Rights Act, 1993 establishes the National Human Rights Commission (NHRC) and State Human Rights Commissions, which are empowered to investigate human rights violations, including cases of bonded labour and labour exploitation.
• International commitments: India has ratified key international instruments addressing forced labour, including the ILO Forced Labour Convention, 1930 (No. 29), the ILO Abolition of Forced Labour Convention, 1957 (No. 105), and the UN Protocol to Prevent, Suppress and Punish Trafficking in Persons.

In general terms, the Indian legal framework addresses forced labour and modern slavery through a combination of constitutional protections, criminal law enforcement, labour regulation, and international obligations, rather than through a single consolidated statute.

Indian laws addressing forced labour do not prescribe sector-specific prohibitions and generally apply across all sectors. The legal framework is broad in scope and is not limited by the nature of the industry, type of product, or stage of production.

However, in practice, certain sectors are subject to increased regulatory focus due to a higher risk of labour exploitation, particularly those involving informal employment, migrant labour, and subcontracting arrangements.

Sectors such as agriculture, brick kilns, and quarrying have historically been associated with bonded labour practices, and enforcement under the Bonded Labour System (Abolition) Act, 1976 is often concentrated in these areas. Similarly, the construction and mining sectors, which involve hazardous working conditions and a reliance on migrant labour, are subject to enhanced safety, welfare, and working condition requirements under the OSH Code. These include obligations such as the constitution of safety committees, appointment of safety officers, compliance with reporting requirements in relation to hazardous operations, and implementation of prescribed measures to ensure worker health, safety, and welfare at the workplace.

Further, industries such as textiles and garments, which are integrated into global supply chains, are subject to increased scrutiny from an international compliance perspective. While such scrutiny is not mandated under Indian law, businesses in these sectors are often required to align with contractual obligations imposed by global buyers, as well as foreign regulatory frameworks such as the EU Forced Labour Regulation (EUFLR), the German Supply Chain Due Diligence Act, and the US Uyghur Forced Labor Prevention Act. In practice, this translates into compliance with internationally recognised standards and audit frameworks, including supplier codes of conduct, social audits (such as SMETA and SA8000), and broader environmental, social, and governance (ESG) due diligence requirements, leading companies to adopt internal monitoring and risk mitigation mechanisms relating to forced labour.

Additionally, the SS Code extends protections to unorganised workers, including those engaged in domestic work and other informal sectors, thereby strengthening the broader labour protection framework.

India does not currently impose a standalone statutory obligation requiring companies to conduct human rights due diligence across their supply chains. However, several regulatory frameworks require disclosures relating to labour practices and human rights risks.

• Business Responsibility and Sustainability Reporting (BRSR)
  Under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Regulation 34, the top 1,000 listed companies (by market capitalization) are required to  include a Business Responsibility and Sustainability Report (“BRSR”) in their annual reports. This framework mandates disclosures relating to human rights policies, risks of child labour and forced labour, grievance redressal mechanisms, employee training, and labour practices across the company’s operations and value chain.
• BRSR Core (Assurance requirements)
  SEBI has also introduced BRSR Core, which requires independent assessment or assurance of key ESG indicators for large listed companies, thereby strengthening the reliability and accountability of disclosures relating to labour and human rights practices.
• Value chain disclosures
  Listed entities are encouraged to assess and disclose ESG risks associated with their value chains, particularly in relation to significant suppliers. In practice, this includes monitoring labour practices and identifying potential risks of forced labour within supply chains.
• Corporate Social Responsibility (CSR)
  Under Section 135 of the Companies Act, 2013, companies meeting specified financial thresholds must spend at least 2% of their average net profits on CSR activities. While not a due diligence obligation, CSR initiatives often address labour welfare, community development, and socio-economic vulnerabilities, thereby indirectly contributing to the mitigation of forced labour risks.

Enforcement of laws relating to forced labour and human trafficking in India occurs through criminal prosecution, labour inspections, and regulatory oversight.

• Enforcement authorities: Key enforcement bodies include police authorities and specialised anti-trafficking units, labour departments responsible for inspections, and the National Human Rights Commission.
• Judicial enforcement: Indian courts play an important role in enforcing labour rights. In Bandhua Mukti Morcha v Union of India (1984) 3 SCC 161, the Supreme Court recognized bonded labour as a violation of fundamental rights and directed governments to identify and rehabilitate bonded labourers.
• Risks of non-compliance: Non-compliance may result in criminal prosecution, financial penalties, regulatory sanctions, suspension or cancellation of licenses or permits, and reputational risks, including potential exclusion from supply chains. In particular, under the BNS offences relating to human trafficking may attract rigorous imprisonment ranging from 7 to 10 years, along with fines, and may extend to life imprisonment in aggravated cases.

Directors and senior executives may face personal liability where labour offences occur within a company. 

Under various statutes including the Bonded Labour Act, where an offence is committed by a company, persons who are in charge of and responsible for the conduct of its business may also be held liable. Under Section 23(1) of the Bonded Labour Act, once a person is established to be "in charge of," liability automatically follows and the punishment includes imprisonment of up to 3 years and fine of up to INR 2,000. The penalties vary from legislation to legislation.

The directors may face criminal liability for offences relating to trafficking and forced labour, as well as penalties for violations of applicable labour laws. They may also be subject to regulatory action in cases of inaccurate or misleading ESG disclosures. Under the Companies Act, an officer in default of the disclosure requirement is punishable with a fine of up to INR 50,000. 

India is currently witnessing several regulatory and policy developments that may impact the framework on forced labour and human rights compliance.

• Proposed Trafficking Legislation: India has proposed comprehensive anti-trafficking legislation in the form of the Trafficking in Persons (Prevention, Care and Rehabilitation) Bill (“Bill”). An earlier version of the bill was passed by the Lok Sabha in 2018 but lapsed after it was not considered by the Rajya Sabha. A revised draft was circulated for consultation in 2021, and the legislation has not yet been enacted.
• Business and human rights initiatives:India is developing a National Action Plan on Business and Human Rights (NAP-BHR) to implement the UN Guiding Principles on Business and Human Rights. A “Zero Draft” of the plan was released by the Ministry of Corporate Affairs in 2019 for stakeholder consultation, but the final action plan has not yet been formally adopted.
• Impact of Global Supply Chain Regulations: Indian companies engaged in international trade may be impacted by foreign regulatory frameworks addressing forced labour in supply chains, including the EU Corporate Sustainability Due Diligence Directive, the EU Forced Labour Regulation, the German Supply Chain Due Diligence Act, the US Uyghur Forced Labor Prevention Act, and similar international initiatives. These developments are expected to increase scrutiny of labour practices within corporate supply chains.