EU Forced Labour Regulation – What You Need to Know

What to Expect From the New Forced Labour Regulation

On 12 December 2024, the EU published Regulation (EU) 2024/3015 of the European Parliament and of the Council of 27 November 2024 on prohibiting products made with forced labour on the EU market and amending Directive (EU) 2019/1937 (Forced Labour Regulation). The Forced Labour Regulation introduces a comprehensive prohibition on products made with forced labour being sold in the EU. This regulation applies to economic operators importing, exporting or selling products into or from the EU, and it takes effect in December 2027.

The Forced Labour Regulation forms part of the EU’s broader efforts to promote supply chain transparency and due diligence, complementing existing regulations like the Corporate Sustainability Due Diligence Directive.¹

The prohibition under the Forced Labour Regulation applies universally to all products sold in the EU, including their components, irrespective of geographic origin or industry. This marks a significant departure from sector-specific and product-specific due diligence laws, such as the EU Regulation on Deforestation² (which is limited to specific products like cattle, cocoa, coffee, oil palm, rubber, soya, wood and their derivatives), the EU Conflict Minerals Regulation³ (covering tantalum, tungsten, tin and gold) or the EU Batteries Regulation⁴ (focusing on the responsible sourcing of cobalt, natural graphite, lithium and nickel).

Unlike these targeted laws, the Forced Labour Regulation adopts a comprehensive, global approach, banning products made with forced labour from any region or sector. This approach also sets it apart from forced labour legislation in other jurisdictions, such as the US Uyghur Forced Labour Prevention Act, which is geographically focused and primarily targets products originating from specific regions.

Timeline

What It Entails – Five Key Features

1. A Comprehensive Ban On All Forced Labour Products

The Forced Labour Regulation prohibits economic operators, defined as “any natural or legal person or association of persons”,⁸ from engaging in the placement, sale or export of products made with forced labour⁹ within the EU market. This includes importing products for the first time, making them available for sale (including via online or distance sales targeting EU consumers)¹⁰ or exporting such products from the EU. The prohibition extends to all components of these products, ensuring comprehensive coverage and applicability across all sales channels.

2. Definition of “Forced Labour” Aligned With International Labour Organisation’s (ILO) Standards

The Forced Labour Regulation adopts the ILO definition of forced labour: “all work or service which is exacted from any person under the menace of any penalty, and for which the said person has not offered himself voluntarily”. The Forced Labour Regulation specifically covers forced child labour as part of this definition. Economic operators are encouraged to consult the ILO’s indicators of forced labour for detailed guidance.

3. Covers The Entire Product Lifecycle

The ban extends to forced labour used at any stage of a product’s lifecycle, including its components, from raw material extraction to final production. This applies to all products within the EU, whether manufactured domestically or imported.

4. Due Diligence and Guidelines

While the Forced Labour Regulation imposes no additional due diligence obligations beyond existing EU laws,¹¹ it encourages economic operators to implement strong due diligence practices. Moreover, the Forced Labour Regulation recognises that any due diligence carried out will be taken into account in case of an investigation and could avoid the initiation of an investigation all together.¹²

By 14 June 2026, the European Commission will issue guidance for economic operators, which will include due diligence processes considering different types of suppliers along the supply chain and different sectors, as well as guidance on best practices for mitigating forced labour.¹³

5. Enforcement Mechanisms

The determination of the competent authority depends on the location of the suspected forced labor violation. For cases involving non-EU countries, the European Commission will take the lead in conducting investigations, whereas national competent authorities will oversee investigations where the risk is located within their own jurisdiction. Collaboration between competent authorities is mandated when investigations uncover forced labor concerns that extend beyond a single territory, ensuring a coordinated and effective response.

The Forced Labour Regulation establishes a risk-based approach that competent authorities will follow to assess violations, according to the following criteria:¹⁴

• The scale and severity of the suspected forced labour
• The quantity or volume of the products on the EU market
• The share of the part suspected to have been made with forced labour in the final product
• The size and economic resources of the economic operators
• The complexity of the supply chain

Competent authorities will rely on several resources to support their investigations, including databases of past non- compliance cases, risk indicators, reports from international organisations such as the ILO and an EU database that will identify high-risk sectors and geographic areas associated with forced labour. These tools will provide credible and verifiable evidence to assess potential violations.

Authorities are required to evaluate all evidence and determine whether an entity has violated the prohibition on forced labour within nine months of initiating an investigation.¹⁵ If a violation is confirmed, they may issue decisions that will contain any or all the following:

• A prohibition to place, or make available the products concerned on the EU market and to export them
• An order for the economic operator subject to the investigation to withdraw the products concerned, or to remove related content promoting or listing the products online
• An order for the economic operator to dispose of violating products

In cases where only specific components of a product are found to violate the prohibition, authorities may require the replacement of those parts while allowing the rest of the product to remain in circulation. For products deemed strategically or critically important, disposal may be postponed to address the forced labour issue while retaining the product.¹⁶

Economic operators are expected to cooperate fully with investigations by providing accurate and complete information. Refusal to cooperate or the submission of misleading information can result in adverse decisions by the authorities.¹⁷ Economic operators affected by a decision can request a review at any time, provided they submit substantial new evidence demonstrating compliance. Authorities are required to respond to such requests within 30 days.¹⁸

What Can Economic Operators Start Doing to Prepare

To meet the compliance requirements by December 2027, economic operators should take proactive steps to align their practices with the Forced Labour Regulation:

1. Assess Supply Chains

Conduct comprehensive analyses of labour conditions across all operational regions, suppliers and subcontractors. Implement supplier codes of conduct, rigorous procurement policies and regular due diligence practices, including audits and questionnaires.

2. Update Contracts

Include clauses addressing forced labour in supply agreements to ensure accountability and compliance with the Forced Labour Regulation.

3. Develop Risk Mitigation Processes

Establish internal processes to identify and address forced labour risks. This includes creating remediation plans and aligning operations with EU norms to safeguard against reputational risks.

4. Assign Responsibilities

Appoint designated personnel to oversee forced labour compliance efforts. Leverage support from legal counsel, social auditors or other third-party experts as necessary.

5. Implement Monitoring and Remediation

Set up systems to monitor compliance and take corrective action where violations are identified. This ensures continuous improvement and adherence to ethical practices.

6. Train Employees

Provide updated training programs for employees, particularly senior management and procurement teams, to ensure awareness of forced labour issues and compliance requirements.

The specific measures adopted will depend on each company’s sector, supply chain complexity and resources. Internationally recognised due diligence frameworks from the UN, ILO and OECD can serve as valuable benchmarks.

Given the time needed to implement these measures effectively, economic operators should act now to ensure readiness for the Forced Labour Regulation’s full application in December 2027.

¹Directive (EU) 2024/1760 of the European Parliament and of the Council of 13 June 2024 on corporate sustainability due diligence and amending Directive (EU) 2019/1937 and Regulation (EU) 2023/2859 (Text with EEA relevance).

²Regulation (EU) 2023/1115 of the European Parliament and of the Council of 31 May 2023 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010 (Text with EEA relevance).

³Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas.

⁴Regulation (EU) 2023/1542 of the European Parliament and of the Council of 12 July 2023 concerning batteries and waste batteries, amending Directive 2008/98/EC and Regulation (EU) 2019/1020 and repealing Directive 2006/66/EC (Text with EEA relevance).

⁵EU Forced Labour Regulation, Article 5.

⁶EU Forced Labour Regulation, Article 11.

⁷EU Forced Labour Regulation, Article 39.

⁸EU Forced Labour Regulation, Article 2(9).

⁹EU Forced Labour Regulation, Article 3.

¹⁰EU Forced Labour Regulation, Article 4.

¹¹EU Forced Labour Regulation, Article 1(3).

¹²EU Forced Labour Regulation, Article 17(1) and (5).

¹³EU Forced Labour Regulation, Article 11 (a) and (b).

¹⁴EU Forced Labour Regulation, Article 20(4).

¹⁵EU Forced Labour Regulation, Article 20(5).

¹⁶EU Forced Labour Regulation, Article 20(5).

¹⁷EU Forced Labour Regulation, Article 20(2).

¹⁸EU Forced Labour Regulation, Article 11.