Council adopts regulation to combat forced labour (update)

7 January 2025 2 min read

By Barbara Angene

At a glance

  • On 19 November 2024, the Council adopted a regulation prohibiting products manufactured using forced labour on the EU market (Regulation).
  • It forbids the placing, making available, or exporting of any product made using forced labour within the Union market, regardless of the product's origin or sector.
  • Economic operators must implement due diligence processes to identify and mitigate risks of forced labour in their supply chains, with guidelines provided by the Commission.
  • After being signed by the President of the European Parliament and the President of the Council, the Regulation will be published in the Official Journal of the European Union and will apply three years after it enters into force.

 

Update: 7 January 2025

On 12 December 2024, the Regulation on prohibiting products made with forced labour on the Union market was published in the Official Journal of the European Union. It will generally apply from 14 December 2027. However, some of the requirements addressed to the competent authorities and the Commission took effect on 13 December 2024. These relate, for example, to the use and establishment of information and communication systems, databases and the establishment of a single point of contact for the transmission of information for the exchange of relevant data, which will be used to monitor compliance with the Regulation.

In accordance with the requirements of the Regulation, the Commission is to draft and publish guidelines on the application of the Regulation by 14 June 2026 to assist economic operators with its implementation.

The Regulation can be accessed here.

The Regulation forbids the placing and making available on the Union market, or the export from the Union market, of any product made using forced labour. This applies to all products, regardless of origin or sector.

The new legislation establishes a structured framework for prohibiting the use of forced labour in the production of EU goods and within supply chains:

Due diligence requirements

    • Economic operators must implement due diligence processes to identify and mitigate risks of forced labour in their supply chains.
    • The Commission will issue guidelines on due diligence in relation to forced labour to assist business in ensuring compliance with the regulation, taking into account the size and economic resources of economic operators. 

Investigation and enforcement

    • A risk-based approach will guide investigations by competent authorities into suspected violations.
    • Authorities will be able to carry out inspections and require economic operators to provide information on their supply chains.
    • To assist in the assessment of possible violations of the Regulation, the Commission will establish a database containing verified and regularly updated information on areas or products where forced labour is a risk.

Penalties for non-compliance

    • Member States must establish effective, proportionate and dissuasive penalties for non-compliance with the Regulation.
    • Penalties will take into account factors such as the seriousness of the offence and the cooperation of the operator.
    • During the investigation, the marketing of products could be suspended and completely stopped if the investigation concludes that forced labour has been used.

Next steps

After being signed by the President of the European Parliament and the President of the Council, the Regulation will be published in the Official Journal of the European Union and will enter into force the day after its publication. It will then apply three years after it enters into force.