NEWS
Dyson is a high-profile UK technology company, employing over 14,000 people and operating in more than 80 countries. They originally achieved their success through the production of innovative vacuum cleaners.
In a recent decision, the UK Court of Appeal in has allowed 24 migrant workers from Nepal and Bangladesh to proceed with claims against Dyson in the English courts. The workers allege that they were subjected to conditions of forced labour, exploitative and abusive living and working conditions, and, in some instances, detention, torture and beating.
The allegations at the heart of the claim are said to have taken place exclusively in Malaysia and not by Dyson itself but by its Malaysian based third-party suppliers. However, the Court took the view that the likely focus of any trial would be on the implementation and enforcement by Dyson’s UK entities of its mandatory policies and standards concerning the conditions of workers in its overseas supply chains.
The case highlights the risks of inadequate supply chain oversight and underscores the importance of ensuring compliance with labour standards and policies throughout the supply chain. Specifically, this decision opens the door for victims of mistreatment overseas to bring reputationally and financially damaging claims against UK companies in the jurisdiction of their headquarters.
Whether courts in other countries would follow the same reasoning remains to be seen, but for companies with global operations, it’s a wake-up call nevertheless.
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