The EU Forced Labor Regulation (EUFLR) was published in the Official Journal of the EU on 12 December 2024 and entered into force the following day.[1] Its provisions will apply starting from 14 December 2027.[2] The regulation prohibits placing or making available products made with forced labor on the European Union (EU) market or exporting them from the EU.
In this CORE Message, we summarize the five key aspects of the EUFLR and outline how businesses can best prepare for its implementation.
The EUFLR ban applies to all products, irrespective of the industry or origin.
The EUFLR prohibits any company or individual (i.e., economic operators)[3] from placing or making available products on the EU market, or exporting them from the EU, if they are made with forced labor.[4]
The EUFLR applies universally to all products regardless of their place of origin. This is a key distinction from the region-specific US Uyghur Forced Labor Prevention Act (UFLPA), which imposes a ban specifically on the importation of goods manufactured with forced labor from the Xinjiang Uyghur Autonomous Region in China. The EUFLR also differs from other EU laws that impose specific due diligence requirements on certain products, such as the EU Deforestation Regulation or the EU Batteries Regulation.
In addition, the EUFLR covers all stages of production. This means the prohibition applies to a product for which forced labor has been used in whole or in part at any point in its extraction, harvesting, production or manufacture.[5]
The EUFRL is topic-specific: It focuses on forced labor, including forced child labor, and state-imposed forced labor.
The EUFLR adopts the International Labour Organization’s (ILO) definition of forced labor and explicitly includes forced child labor and forced labor imposed by state authorities.
According to the ILO’s definition, forced labor is “any work or service which is exacted from any person under the threat of a penalty, and for which the person has not offered themselves voluntarily.”[6]
The EUFLR does not create additional due diligence obligations for companies.
The EUFLR does not create additional due diligence obligations for companies beyond those already established in existing EU or national corporate sustainability laws.[7]
To support companies’ implementation of the EUFLR, the EU Commission will issue guidance on due diligence specifically in relation to forced labor.[8] However, the EUFLR does not intend to duplicate duties companies already need to fulfill under other due diligence related national laws, such as the German Supply Chain Act (LkSG) or EU legislation like the Corporate Sustainability Due Diligence Directive (CSDDD).
In practice, this means that companies that already conduct human rights due diligence in line with the UN Guiding Principles on Business and Human Rights (UNGPs), the OECD Due Diligence Guidance for Responsible Business Conduct or in line with the German Supply Chain Act, are also already addressing the risk of forced labor in their own operations and within their supply chains.
Before an investigation into forced labor risks is initiated, companies will be requested to demonstrate the due diligence measures they have carried out, i.e., the actions they have taken to identify, prevent, mitigate, bring to an end or remediate forced labor risks in relation to the products in question.
Once a request for information is received, companies will have 30 days to respond. This means they will need to have conducted their due diligence prior to a request.[9] Once the company submits information on its due diligence, authorities have another 30 days to decide whether there is a substantiated concern that there has been a violation regarding the forced labor prohibition and hence further investigation is warranted.[10]
Due diligence conducted in line with the above-mentioned international standards and due diligence laws will put companies in a better position to respond to requests from supervisory authorities enforcing the EUFLR in member states.
Forced labor investigations must follow a risk-based approach.
The EUFLR requires both the EU Commission and designated supervisory authorities in EU member states[11] to follow a three-factor risk-based approach when assessing the likelihood of violations. This approach aims to support the prioritization of products suspected of having been made with forced labor’ based on the following three factors:
- The scale and severity of the suspected forced labor, including whether forced labor imposed by state authorities should be a concern.
- The quantity or volume of products placed or made available on the EU market.
- The share of the part suspected to have been made with forced labor in the final product.[12]
When assessing the likelihood of an EUFLR violation, the authorities must rely on “all relevant, factual and verifiable information” available, such as data from a forced labor risk areas or products database, risk indicators of forced labor, information obtained through the single information submission point, or input from meaningful consultations with relevant stakeholders.[13] The EU Commission is mandated to establish the database of forced labor risk areas and products[14] and the information submission point,[15] as well as make available information on forced labor risk indicators.[16]
In addition, the supervisory authorities will take into account the following factors in their preliminary investigation:
- The economic operators and product suppliers closest to the point where forced labor is likely occurring, and those with the highest leverage to prevent, mitigate and bring to an end the use of forced labor.
- The size and economic resources of the economic operators involved and the complexity of the supply chain.[17]
Non-compliance will result in penalties.
The supervisory authority bears the burden of establishing whether a violation of the forced labor prohibition took place.[18] If a violation of the EUFLR is confirmed, within nine months, the supervisory authority will adopt a decision containing:
- A prohibition on placing or making available the product(s) in question on the EU market and to export them.
- An order to withdraw the product(s) from the EU market or remove relevant online content.
- An order to dispose of the product(s).
In cases where only parts of a product are implicated, replaceable components must be removed and substituted.[19] However, if the product is of strategic or critical importance, then the competent authority may allow the product to be withheld temporarily to address the forced labor issue instead of mandating its disposal.[20]
Companies can request a review of the decision at any time by presenting evidence of compliance with the prohibition, i.e., demonstrating that forced labor has been eliminated in relation to the product in question.[21] However, if the decision is upheld and the company fails to comply with the decision, penalties will be imposed.[22] These penalties must be “effective, proportionate and dissuasive” and consider factors such as the seriousness and duration of non-compliance; the company’s past record of non-compliance and its cooperation with authorities, and any other mitigating or aggravating circumstances.[23]
How can companies best prepare for implementing the EUFLR?
Companies should consider taking the following steps to prepare for implementing the EUFLR.
1. Deepen the understanding on forced labor within the relevant corporate functions.
Understanding the risk is key is to begin with. Forced labor may often be difficult to detect due to several factors such as the hidden nature of operations or deceptive practices carried out by perpetrators. It is hence important that the relevant corporate functions in charge of identifying, addressing and monitoring the risk have the necessary knowledge and skills to do so.
2. Enhance your risk assessment process.
Make sure your risk assessment effectively captures the risk of forced labor, including state-imposed forced labor and forced child labor. Early detection is a sign of a well-functioning and robust due diligence system.
3. Map high-risk goods.
Elaborate an overview of imported and exported products that carry a high inherent risk of being made with forced labor or containing components produced under forced labor conditions.
4. Prioritize high-risk goods.
Focus on goods with the highest risks and further map their supply chains to identify countries of origin and their associated risk levels. The factors spelled out in the Regulation could help the prioritization.
5. Identify and engage with stakeholders.
Collaborate with relevant internal and external stakeholders who can provide valuable insights into countries, sectors, or suppliers. Gather information on potential indicators of forced labor, for example, by reviewing civil society reports on forced labor.
6. Develop action plans.
Create strategies to prevent and mitigate forced labor risks, including measures and remediation plans to be taken in case forced labor is detected and disengagement plans to be executed as a last resort.
Companies with established due diligence processes can leverage these existing processes and resources to meet the EUFLR requirements. Further clarification from the EU Commission is needed on what “elimination of forced labor” and “bringing forced labor to an end” mean in the context of the EUFLR, [24] and it remains to be seen how supervisory authorities will enforce the regulation in practice. However, one thing is certain: companies with due diligence processes in place will certainly be better positioned to implement the requirements and respond to inquiries from competent authorities.
At CORE, we help businesses and policymakers identify forced labor risks in supply chains and develop effective mitigation plans. To learn more about our services and how we can support you in building responsible and sustainable sourcing strategies, contact us at hello@peopleatcore.com.
Cecilia for the CORE team
[1] Regulation 2024/3015 of the European Parliament and of the Council of 27 November 2024 on prohibiting products made with forced labour on the Union market and amending Directive (EU) 2019/1937 (“Forced Labor Regulation”) Available at https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L_202403015
[2] EUFLR, Art. 39.
[3] EUFLR, Art. 2 (9).
[4] EUFLR, Art. 3.
[5] EUFLR, Recital 18 and Article 2 (7).
[6] ILO Convention No. 29
[7] EUFLR, Art. 1(3).
[8] EUFLR, Recital 36.
[9] EUFLR, Art. 17 (1) and (2).
[10] EUFLR, Art. 17 (3), (4) and (5) and Art. 18.
[11] EUFLR, Art. 5.
[12] EUFLR, Art. 14.
[13] EUFLR, Art. 14 (3).
[14] EUFLR, Art. 8.
[15] EUFLR, Art. 9.
[16] EUFLR, Art, 11 (e).
[17] EUFLR, Art. 14 (4).
[18] This is different from the UFLPA’s approach, where the rebuttable presumption that goods are made wholly or in part in the Xinjiang Uyghur Autonomous Region in China means that the evidentiary burden of proving that the product is not made with forced labor lies with the company.
[19] EUFLR, Art. 20 (4).
[20] EUFLR, Art. 20 (5).
[21] EUFLR, Art. 21.
[22]EUFLR, Art. 23.
[23]EUFLR, Art. 37.
[24] For further analysis see Fatmanur Caygin Aydin, “Strengthening the EU’s Stand Against Forced Labour: the Regulation on Prohibiting Products Made with Forced Labour (Danish Institute for Human Rights, 2024) pages 13-14.