Forced Labour Products Regulation Enters into Force

Introduction 

Approximately 27.6 million people work in forced labour conditions in many industries around the world. Most of this takes place in the private sector, while some is imposed by public authorities.

The Forced Labour Regulation (EU 2024/3015) (the Regulation), which forbids the placing and making available on the EU market, or the export from it, of any product made using forced labour, entered into force in December 2024. The Regulation will apply from 14 December 2027, except for certain provisions listed in Article 39 which apply from 13 December 2024.

Investigating and combating forced labour

The Regulation lays down rules prohibiting economic operators from placing and making available on the EU market products made with forced labour or exporting such products from the EU.   

The EU Commission (the Commission) will create a database of forced labour risk areas or products to support the work of member state authorities in assessing violations of the Regulation. Following a risk-based approach, member state authorities or the Commission may initiate an investigation, depending on whether the use of forced labour occurred inside or outside the EU, respectively. 

Member state authorities will be required to share information with other member states if they suspect that violations of the Regulation are occurring in other parts of the EU, or share information with the Commission, if they suspect the use of forced labour outside the EU. 

The final decision (that is, to ban, withdraw and dispose of a product made using forced labour) will be taken by the authority that led the investigation. The decision taken by a national authority will apply in all other member states, based on the principle of mutual recognition. Failure to comply with such a decision will expose an economic operator to penalties. 

The Commission is required to issue guidelines under the Regulation by 14 June 2026. The guidelines will include, among other things, guidance for economic operators on due diligence in relation to forced labour, best practices for ending and remediating different types of forced labour, and due diligence in relation to forced labour imposed by state authorities. 

Periodic evaluation by the Commission 

The Commission will evaluate the enforcement and implementation of the Regulation by December 2029 and every five years thereafter and present its report to the European Parliament, Council and European Economic and Social Committee. The evaluation will include an assessment of the effectiveness of co-operation between competent authorities, the impact on businesses, including costs of compliance and benefits, with a particular focus on SMEs. The evaluation must also consider whether the Regulation's scope ought to be expanded to include services ancillary to the extraction, harvesting, production or manufacturing of products made using forced labour. 

For more information, please contact John Gaffney or your usual contact in Beauchamps LLP.