I was first introduced to the idea of Business and Human Rights Arbitration at the 2024 Basel Winter Arbitration School. During a discussion on the Hague Rules on Business and Human Rights Arbitration, it struck me: if lawyers and law students are largely unaware of the Hague Rules, how would workers (many of whom are unaware of their most basic labour rights) and affected individuals ever know about these Rules and hope to access them?

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This question became the starting point of my interest in building an accessible path to justice for people affected by business activity in India.

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What is BHR Arbitration?

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BHR Arbitration is a method for resolving disputes where business activities may have harmed individuals or communities. It can address issues such as unsafe working conditions, discrimination, environmental harm, community displacement and other human rights impacts associated with business operations and supply chains.

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In simple terms, 

• It offers a quick and inexpensive process.

• It provides a hearing that strikes a balance between transparency and confidentiality.

• It creates a path to remedy for individuals who may not be able or are unwilling to approach traditional courts.​

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The Hague Rules on Business and Human Rights Arbitration were designed in 2019 by the City of The Hague (yes, it takes a village) to guide this kind of arbitration. These Rules are based on the United Nations Guiding Principles and draw from the UNCITRAL Arbitration Rules. They are publicly available for anyone who wishes to explore them.

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Why BHR Arbitration Matters for India

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The International Monetary Fund placed India fourth among the world’s largest economies this year. According to the Press Information Bureau of India, India is projected to become the third-largest economy by 2030, with a GDP of $7.3 trillion. Given these projections, it is no surprise that India’s economy is becoming increasingly integrated with the global market and is emerging as a significant player in international trade.

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However, even as India prepares its markets for business, many workers, local communities and informal labourers affected by business decisions still struggle to access justice. Barriers include overburdened courts, long delays, high legal costs and limited awareness of rights and remedies.

 

The Hague Rules on Business and Human Rights Arbitration offer a possible solution. For businesses, using these Rules would signal accountability and alignment with global human rights standards, inspiring trust with the government and stakeholders. For workers and communities, the Rules provide a quicker and more affordable path to relief than ordinary litigation. Most importantly, they help bridge a gap that India has struggled with: bringing global human rights standards closer to ground realities.

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Where India Stands Today

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India recognises the UN Guiding Principles and has taken steps to encourage responsible business behaviour. Recent government guidelines and ESG reporting requirements reflect a growing interest in corporate accountability. News reports signify that the Indian government is in the final stages of releasing its long-awaited National Action Plan on Business and Human Rights.

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However, BHR Arbitration as a model remains almost unknown in India. Furthermore, the Hague Rules on Business and Human Rights Arbitration are not widely discussed. They are neither available in vernacular languages for the larger Indian populace to understand, nor are they part of the Indian law school curriculum. Many lawyers I have spoken to have never encountered them.

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In this light, the first step toward initiating a conversation about BHR Arbitration is raising awareness. Only then can we explore questions about how the Hague Rules on Business and Human Rights Arbitration could be applied within the Indian legal system, how consent to arbitrate would function in this context or what changes would be necessary in our arbitration framework. These are larger discussions which deserve dedicated attention.

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The Way Forward

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The BHR Arbitration Concord – India was established with the goal of introducing and advocating for these ideas to India’s community and the broader public. The focus is on research, conversation and building a network of lawyers, academics, and professionals who view arbitration not only as a method of dispute resolution but also as a living instrument of justice in India.

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The Hague Rules on Business and Human Rights Arbitration are only six years old. Their impact will depend on how countries like India choose to understand, adapt and work with them. The important thing to remember here is that this movement is not about replacing courts. It is about complementing them: offering a route that is faster, more accessible and more attuned to the realities faced by individuals whose rights may have been harmed by business actions. 

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The conversation that began for me in Basel is one that now belongs here, in India. As our economy grows and our global footprint expands, our understanding of justice must evolve in tandem, giving both Business and Human Rights Arbitration a fair seat at the table.

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Legal scholar Dr Ursula Kriebaum, whose work was the first I read on the Hague Rules on Business and Human Rights Arbitration, ends her discussion with Winston Churchill’s words – a reminder that this field needs cooperation for broader acceptance: 

 

“Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”