Companies need to implement protocols for control, prevention and compensation (identification, mitigation &remedy) that are adequate.
Companies have an obligation not to cause damage, and thereforeto immediately suspend the activity associated with the damage.
Mandatory stakeholder engagement in many instances, broad definition of stakeholders
Implement protocols and policies that facilitate community participation
DD needs to be an ongoing exercise as companies’ activities develop
Companies have a legal obligation to remedy victims, and to create funds to cover the basic needs of affected people
Human rights report issued every 6 months. The draft bill goes into extensive detail about what the plans ought to include
Normative scope
Human Rights
States the principle of “centrality of the victims”, and that human rights framework will override other agreements of economic, trade services and investment nature
Includes all conventions forbidding discrimination, and positive duty to enact anti-discrimination actions; all conventions forbidding child labour and forced labour in supply chains; data protection legislation; indigenous peoples’ rights; rights of peasants and other people living in rural areas; rights of trade unions and human rights defenders.
Does not mention specific conventions
Environment
Environmental rights are included
No reference to climate
Broad ranging
Value chain scope
Own operations
Direct Subsidiaries
Indirect subsidiaries
Suppliers
The bill refers to “any entity” in business’s global value chains
Company scope
Large companies
SMEs
The law applies to all companies,and their subcontractors, branches, subsidiaries, and extends to all economic and financial institutions
Administrative enforcement
Monitoring
Companies are required toself-monitor, but States’monitoring prevails over companies’ self-monitoring
States must create instruments for civil society participation in the enforcement of public policies, includingmonitoring
Sanctions
Any subsidy policies benefitting violating companies, especially policies like tax exemptions, are prohibited
Failure to implement the report may result in preventive embargoes on the violating company
Prohibition/suspension of operations of companies that don’t implement preventive measures or reparation
Other sanctions: loss of assets gained through abuse, no public incentives, fines, loss of control and possible transferof the company to workers.
Judicial enforcement
Civil Liability
Joint and sever liability regime covering the whole business value chain (including investors, including informal business relationships)
Possibility of holding directors liable for not presenting the due diligence plan every 6 months
Access to Justice
Unlimited access to all documents and information beneficial to victims
Full and equal access to justice forpersons and communities
States must implement measures to attend groups in situations of vulnerability analogous to slavery
Reversal of the burden of proof
Technical legal support to victims
Reasonable time limitations, and no time limitation to damage reparation claims
Extensive and free legal assistance to groups in situation of vulnerability
Business operations open to external inspection
Injunctive measures
Documentation
Law
Framework for Business and Human Rights (PL 572/2022)
Brazil
March 29, 2022
AreaCompany Law and Civil Law
Reporting
Due diligence
Due diligence and remedy
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