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December 4, 2024

EU targets forced labour with new regulation

The EU Council has adopted the Forced Labour Regulation, prohibiting the sale and export of goods made with forced labour within the Union market. This regulation aims to eliminate forced labour from global supply chains by establishing enforcement mechanisms, including a database to identify high-risk products and regions. Investigations will be handled by the European Commission for non-EU cases and by Member States for domestic issues, with mutual recognition of enforcement decisions across the EU.

Complementing the Corporate Sustainability Due Diligence Directive (CSDDD), the Regulation introduces measures to ban goods linked to forced labour without adding new due diligence obligations for businesses. It requires Member States to enforce penalties for non-compliance and mandates guidance to help companies address forced labour risks. The law will take effect three years after its publication in the EU’s Official Journal.

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