In our blog post “Updates on Supply Chain Due Diligence: The EU Forced Labour Regulation", we outlined the key elements of Regulation (EU) 2024/3015. The European Commission has now published, on June 26, 2026, its long-awaited guidelines on the application of the EU Forced Labour Regulation. The guidelines are intended to support companies in practical implementation and, for the first time, provide concrete guidance on the measures that will be expected in practice.
Although the guidelines are not legally binding, they are likely to significantly shape the future enforcement and supervisory practice of the competent authorities. Companies should therefore begin addressing the new guidance now, even though the EU Forced Labour Regulation will not apply until December 14, 2027.
What Is It About?
The EU Forced Labour Regulation prohibits the placing on the market, making available, and exporting of products made with forced labour. Unlike the German Supply Chain Due Diligence Act (LkSG) or the European Corporate Sustainability Due Diligence Directive (CSDDD), the EU Forced Labour Regulation applies to all companies, regardless of industry sector, company size, or registered office, and generally covers all types of products. The EU Forced Labour Regulation also applies regardless of whether the forced labour occurs within a company’s own operations or within its supply chain.
In the event of non-compliance with the EU Forced Labour Regulation, the competent authority may order a prohibition on placing, making available, or exporting the relevant products. It may also order affected products to be withdrawn or removed from the market.
What Do the New Guidelines Clarify?
Although the European Commission emphasizes that the EU Forced Labour Regulation does not create any new statutory due diligence obligations, companies remain subject to an obligation to achieve a specific result – namely, the obligation to ensure that they do not place on the market, make available, and/or export products made with forced labour. Accordingly, the application guidelines make more than clear that companies should have reliable processes in place to identify and address risks of forced labour along their supply chains.
According to the European Commission’s guidelines, companies are for example advised to:
implement responsibilities and processes for preventing forced labour within their compliance systems (existing compliance systems may be used for this purpose; a separate compliance system specifically for forced labour is not required),
identify and assess forced labour risks in their business operations, supply chains, and business relationships in a structured and documented manner,
implement preventive and remedial measures (for example, proactively adjusting procurement practices, production processes, or order deadlines; including assurances regarding compliance with the EU Forced Labour Regulation in contracts; and creating termination rights for business relationships),
continuously monitor and evaluate risks, compliance with the processes introduced, and the effectiveness of the preventive and remedial measures adopted,
communicate how risks are being addressed, provided that confidentiality requirements do not prevent such communication (for example, communication regarding the integration of due diligence obligations into internal strategies and management systems, the areas in which a significant forced labour risk has been identified, the criteria used to prioritize forced labour risks, the activities undertaken to prevent or mitigate those risks, and the results of those activities),
establish grievance and whistleblower systems, and
document all measures as well as all review and assessment results in a traceable manner.
Why Is Documentation Becoming Increasingly Important?
The guidelines clarify that, in the event of a suspected case, the competent authority may require the company concerned to provide extensive information. Companies must provide all requested information within the applicable deadline and must also ensure that the information submitted is accurate, meaningful, relevant, and complete.
Such information may include, for example:
procurement policies, supplier codes of conduct, contractual clauses prohibiting forced labour, and onboarding and monitoring of suppliers,
company policies (for example, codes of conduct and governance documents),
training materials for managers, employees, and suppliers,
risk analyses and assessments,
evidence of preventive and remedial measures and of the establishment of a grievance procedure,
information on the affected products and production sites (for example, supply chain certificates and on-site working conditions),
a description of the supply chain and the key production steps.
Companies that are able to provide the relevant information and documents at short notice will be significantly better positioned to rebut allegations and/or expedite investigations. By contrast, where traceable documentation is lacking, the risk of enforcement measures by the authorities increases considerably.
Key Recommendations for Companies
Although the regulation will not apply until the end of 2027, companies should make the best possible use of the remaining time:
Assess applicability at an early stage
Unlike many other regulatory frameworks, the EU Forced Labour Regulation is product-based and is not limited to specific companies or company sizes. Companies of all sizes should therefore analyze whether their products, raw materials, or components are particularly exposed to forced labour risks – and, if so, which ones.
Review existing supply chain processes and compliance structures
Companies that have already implemented requirements under the LkSG, the CSDDD, or other ESG-related regulatory frameworks should review whether those processes are sufficient to ensure compliance with the EU Forced Labour Regulation as well, or whether they should be adjusted accordingly. Leveraging existing compliance processes and using available synergies can help avoid duplicative structures while reducing the effort required to comply with the EU Forced Labour Regulation.
Ensure comprehensive documentation
The guidelines make clear that not only the preventive or remedial measures adopted will be decisive, but also, in particular, the documentation of all measures taken to ensure compliance with the EU Forced Labour Regulation. Companies that establish reliable documentation processes now will be much better prepared for inquiries from the authorities.
Conclusion
The European Commission’s application guidelines do not change the substantive scope of the EU Forced Labour Regulation; however, they provide a clear indication of the expectations authorities are likely to impose on companies going forward. Companies should therefore use the period before the transition period expires on December 14, 2027, to critically review their existing compliance and supply chain processes and, where necessary, refine them accordingly. Documentation, in particular, is moving further into focus and will be of key importance going forward.
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