Forced labor disproportionately affects migrant workers across global supply chains. With the EU Forced Labor Regulation, this reality moves from principle to practice — turning forced labor into a clear, enforceable market access issue for businesses operating in or trading with the European Union.

Quizrr

Admin

The European Union has adopted the EU Forced Labor Regulation, introducing a binding ban on products made with forced labor from entering, circulating within, or leaving the EU market.

Unlike reporting-focused sustainability legislation, this regulation is about access. If forced labor is found at any stage of production — whether in raw materials, components, or finished goods — the product can be withdrawn, banned, or prevented from being traded in the EU.

What the regulation covers

The regulation applies broadly:

• To all products, regardless of sector
• To all companies, regardless of size
• To all supply chains, whether production takes place inside or outside the EU

There are no size-based exemptions. Any company placing goods on the EU market must be prepared to demonstrate that forced labor has not occurred in its value chain.

How enforcement works

Enforcement follows a risk-based approach. Authorities will prioritize investigations based on:

• The severity and scale of suspected forced labor
• Geographic and sectoral risk indicators
• Supply chain complexity
• Credible information from third parties, including civil society and whistleblowers

Where forced labor is confirmed, authorities can require products to be withdrawn from the market, destroyed, recycled, or donated. Enforcement is coordinated across EU Member States, supported by EU-level cooperation mechanisms.

Timeline: when companies need to act

• The regulation entered into force in 2024
• EU Member States must designate enforcement authorities by December 2025
• The regulation will apply from December 14, 2027

While 2027 may seem distant, building credible systems for risk identification, worker engagement, and remediation takes time. Companies that wait risk being unprepared when enforcement begins.

Why this matters for businesses

The EU Forced Labor Regulation marks a shift in expectations.

Forced labor is no longer only a sustainability or reputational concern. It is a trade and market access requirement. Companies will increasingly be judged not by policies alone, but by what they know about their supply chains — and how they act when risks are identified.

This places renewed focus on:

• Practical supply chain visibility
• Worker voice and grievance mechanisms
• Training that enables people to recognize and address forced labor risks in day-to-day operations