Labour Rights Risk Assessment

A Labour Rights Risk Assessment is a systematic evaluation of the risks of labour rights violations — including forced labour, child labour, discrimination, excessive working hours, inadequate wages, and restrictions on freedom of association — across an organisation's own operations and supply chain. The assessment identifies the labour rights risks most likely to be present based on the organisation's sector, geography, and workforce profile — examining both inherent risks arising from the operating context and residual risks that remain after existing controls are considered.

It evaluates the adequacy of current management systems, policies, and practices in addressing identified risks and recommends targeted improvements. It is used as a standalone assessment, as a component of broader ESG due diligence, and as the risk identification step in a formal human rights due diligence programme — providing the evidence base for prioritising labour rights management efforts and demonstrating responsible employment practices to investors and stakeholders.