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Article

31 Mar 2021

Author:
American Bar Association

Model Contract Clauses to Protect Workers in International Supply Chains

With input from multiple stakeholders, including commercial lawyers, human rights lawyers, civil society, and businesses (both buyers and suppliers), these Model Contract Clauses to Protect Workers in International Supply Chains (MCCs) enable companies to operationalize their human rights due diligence processes into their supply contracts. (The MCCs are provided for informational purposes only and do not constitute official ABA policy or legal advice).

Providing a brief introduction to the MCC initiative, including its objectives, target audience, and an outline of some of the key human rights due-diligence aligned clauses.

Addressing some FAQs on why and how to use the "MCC toolkit" (MCCs 2.0, the Buyer Code and Schedule P Building Blocks) and summarizing how due diligence-aligned contracts compare with traditional supply contracts.

Offering a complete introduction to the text of the MCCs (starting at page 17). MCCs consists of 33 model contract clauses designed to integrate human rights due diligence principles into every stage of the supply contract and operationalize the shared responsibility between buyers and suppliers for the human rights performance of their contract.

Buyers' purchasing practices can play a key role both in protecting and in harming workers. While most codes of conduct address the supplier, the Buyer Code (referred to in MCCs as "Schedule Q") sets out principles and standards for buyers (including brands) to better protect workers' human rights in their supply chains.

While many companies already have committed to respect human rights in their corporate codes of conduct, many are looking for help in doing so in their supply chains. "Building Blocks for Schedule P" offers guidance on developing a human rights policy that can be operationalised contractually (referred to as "Schedule P" throughout the MCCs).

Timeline