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Administrative sanctions Economic sanctions Forced labour Slavery Transparency in supply chains

Article 1 of the Ordinance sets out the rules regarding the Registry of Employers found to have subjected workers to conditions analogous to slavery. This article provides that the list will be published in the website of the Ministry of Labour and Employment. The names of employers utilising slave labour will remain in this list for a period of two years.

Notes

This Ordinance reinstates the Registry of Employers found to have subjected workers to conditions analogous to slavery, also known as the ‘dirty list’ (lista suja). The dirty list has become an important deterrent measure for the eradication of slave labour in Brazil due to the economic consequences of being included on the list. Established by Ordinance No. 540 of October 15, 2004, the so-called ‘dirty list’ is a registry of names of employers , including persons and legal entities, which have been found to have exploited workers in conditions analogous to slavery. The list is updated every six months and made public through the websites of the Ministry of Labour and the NGO Repórter Brasil.

The companies and individuals that are on the register cannot receive public financing, and their access to private financing is limited, due to the fact that many financial institutions refuse to provide credit and other banking benefits to employers included on the list.

Furthermore, members of the National Pact for the Eradication of Slave Labour, a multi-stakeholder initiative launched in 2005 by which major companies pledge to prevent and eradicate slave labour from their supply chains, use the ‘dirty list’ to identify suppliers who have been found to use slave labour in their supply chains. By early 2014, over 400 corporations, accounting for over 35% of Brazil’s GDP, had signed this Pact.

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Ordinance / Brazil / Interministerial Ordinance No. 2 of March 31, 2015

The Interministerial Ordinance No. 2 of March 31, 2015 reinstated the “dirty list” of the Ministry of Labour, with a basis in the Freedom of Information Act. The list had been suspended in December 2014 by a Supreme Court decision in a case brought by the Association of Real Estate Developers challenging the constitutionality of the “dirty list”. Subsequently Ordinance No. 2 of March 31, 2015 repealed Ordinance nº 2 of May 12, 2011, leaving the Supreme Court judgement devoid of content.