Common use of Labour Clause in Contracts

Labour. 1. Recognising that each Contracting Party has the right to determine its own labour standards of protection and to adopt or modify laws accordingly its ad hoc, each Contracting Party shall endeavour to ensure that its legislation provides labour standards consistent with the internationally recognized labor rights set forth in paragraph 6 of article 1 and will continue to improve those standards. 2. The Contracting Parties recognise that it is inappropriate to ease labour legislation in order to encourage investment. in this regard, each contracting party will ensure that it is not granted exemption or derogation from any other way to such legislation, nor be offered opportunities for exemption or derogation to promote the establishment, maintenance or expansion of an investment in its territory. 3. The Contracting Parties reaffirm their obligations as members of the International Labour Organization (ILO) and their commitments under the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work and its follow-up. the Contracting Parties shall ensure that the universally accepted principles and rights of workers set forth in paragraph 6 of Article 1 are recognized and protected in their domestic legislation. 4. The Contracting Parties recognize that enhanced mutual cooperation provides opportunities to improve labor standards of protection. at the request of either Contracting Party, the other Party shall accept that representatives of their Governments shall meet for consultations on any matter falling within the scope of this article.

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