Labour exploitation
Labour exploitation - Use of under-paid and/or offshore labour to develop, manage or optimise a technology system.
ENTITY
1 - Human
INTENT
1 - Intentional
TIMING
3 - Other
Risk ID
mit972
Domain lineage
6. Socioeconomic and Environmental
6.2 > Increased inequality and decline in employment quality
Mitigation strategy
1. Establish Mandatory Supply Chain Transparency and Due Diligence Implement technology-enabled, continuous due diligence across the entire multi-level supply chain (including subcontractors for data labeling and content moderation). This involves integrating AI-powered risk monitoring systems to detect anomalous labor practices and utilizing blockchain or similar immutable ledger technologies to create auditable, transparent records of worker recruitment, contracts, and payment schedules, thereby mitigating the risk of undocumented wage theft and fee-based debt bondage. 2. Institute Secure and Confidential Worker Voice Mechanisms Deploy mobile-based, confidential grievance and reporting platforms that provide offshore and outsourced workers with a direct, unmediated channel to report labor abuses, inadequate wages, or poor working conditions. These systems must be independently verified and linked to a clear, enforced remediation framework to ensure that reports lead to swift, effective, and non-retaliatory corrective actions by the primary contracting organization. 3. Enforce Contractual Standards for Fair Compensation and Labor Rights Standardize and enforce contractual clauses for all external labor procurement that mandate a living wage, statutory benefits (including health and mental health support), and full compliance with local and international labor conventions. Furthermore, hold contractors and subcontractors legally and financially accountable for non-compliance, requiring immediate remediation, such as the full reimbursement of unlawful recruitment fees or withheld wages, to eliminate the economic coercion inherent in labor exploitation.