The EU Forced Labour Regulation is approaching. Is your business prepared?

The EU Forced Labour Regulation (EUFLR) is expected to have a significant impact on organizations placing products on the EU market, yet it remains less widely discussed than many other sustainability regulations.

Unlike a directive, the EUFLR is a directly applicable regulation. It introduces a product-based prohibition on goods made with forced labour and applies regardless of company size, industry, or country of origin. The regulation covers the entire product lifecycle, including raw material extraction, harvesting, manufacturing, and processing.

While many organizations may believe their direct suppliers present a low risk, the regulation reinforces the importance of understanding and assessing potential forced labour risks throughout the supply chain. Businesses are expected to carry out appropriate due diligence to identify, evaluate, and address these risks.

If a competent authority determines that a product has been made using forced labour, the product may be required to be withdrawn from the EU market. Organizations may also be required to dispose of, destroy, or donate affected products, with enforcement measures determined by the relevant national authorities.

To help reduce risk and strengthen supply chain transparency, businesses are encouraged to implement due diligence processes aligned with internationally recognized frameworks. The European Commission also provides guidance on compliance expectations, risk indicators, and best practices.

Intertek supports organizations with labour due diligence through on-site auditing and monitoring services, including dedicated Labour Provider Audits focused on identifying and addressing forced labour risks throughout the supply chain.

For organizations operating in both the EU and the United States, it is also valuable to understand how the EUFLR compares with the Uyghur Forced Labor Prevention Act (UFLPA). While the UFLPA focuses on imports connected to a specific region and operates through an import presumption framework, the EUFLR applies globally and is enforced through investigations conducted by competent authorities.

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