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In its ruling in the landmark case of , the Supreme Court remarked, “To enable the fathering of a valiant and vibrant man, the child must be groomed well in the formative years of his life. He must receive education, acquire knowledge of man and materials and blossom in such an atmosphere that on reaching age, he is found to be a man with a mission, a man who matters so far as society is concerned”.

The labour of children of both sexes is a longstanding global challenge. Although the responsibility for overcoming such concerns has usually been that of individual states, companies worldwide are progressively acknowledging their responsibility for its elimination by incorporating stringent policies in their governance structures. Such acceptance has made child labour a critical component of ESG frameworks.

Article 24 of the Constitution of India prohibits the employment of children below the age of 14 years in any factory or mine or any other hazardous employment. Additionally, article 21A categorises the right to education as a fundamental right for children between the ages of six and 14. Article 39 requires the state to ensure that childhood and youth are protected against exploitation.

The principal statute regulating child labour is the , which generally prohibits the employment and engagement of a child below 14 years of age in all occupations and processes; prohibits the engagement of an adolescent, that is a person between 14 and 18 years of age, in hazardous occupations and processes, and regulates the engagement of adolescents in non-hazardous occupations and processes.

Violations of the provisions of the act are punishable by imprisonment or fine or both. The act and the rules made thereunder enable anyone to report a violation of the act. The Ministry of Labour and Employment has also issued a standard operating procedure for enforcing the act, outlining specific duties and processes for individuals and agencies involved at various stages of its implementation. To ensure more effective enforcement, the government has launched an online platform known as PENCIL, which has streamlined the process of filing complaints. Despite these initiatives, the latest annual report of the National Crime Records Bureau reveals that only 751 cases were registered under the act. This shows that the state has to take more proactive measures to implement and enforce the legislation.

To ensure the involvement of the corporate world in tackling the problem, the Securities and Exchange Board of India requires the top 1000 listed entities by market capitalisation to include business responsibility and sustainability reports in their annual reports. In these, companies must disclose complaints made by their employees regarding child labour. While this is an important step in establishing corporate accountability, India should perhaps follow the example of foreign jurisdictions that have enacted more stringent and specific laws on this subject. The Dutch Child Labour Duty of Care Law, for example, requires companies to adopt all necessary measures to prevent child labour in the production or delivery of goods and services intended for Dutch consumers.

It is encouraging that many companies, such as Apple and IKEA, have formulated codes of conduct or policies aimed at eliminating child labour, to which their suppliers must adhere. These are often incorporated in their supply-chain contracts, compelling their suppliers to make their operations child labour-free. Violations of human rights are being recognised by the investor community as well, and global institutional investors are starting to consider child labour an investment obstacle.

The ruling in MC Mehta (supra) ended with the hope that “The closing years of the 20th century would see us keeping the promise made to our children by our constitution about a half-century ago”. This has not happened. A huge effort still needs to be made to eliminate child labour, and such an endeavour requires relentless enforcement. In addition to having adequate statutory safeguards in place, increased corporate involvement in dealing with this issue by adopting effective policies will be a move in the right direction.

Pradyuman Dubey and Saurabh Tiwari are partners at DSK Legal. They can be reached at pradyuman.dubey@dsklegal.com and saurabh.tiwari@dsklegal.com.

The authors would like to thank associate Deepshikha Bhati for her contribution.