Companies would be banned from using forced labor to manufacture, sell or export products in the European Union (EU), under measures included in a proposed Regulation issued by the European Commission (“commission”) on 14 September 2022. Forced labor is defined as “all work or service which is extracted from any person under the threat of a penalty and for which the person has not offered himself or herself voluntarily.” Upon agreement, the Regulation would enter into force in EU member states without requiring national implementing legislation, and would apply 24 months later.
The proposed Regulation follows publication of the commission’s Communication on Decent Work Worldwide (February 2022), Guidance to assist EU business to address the risk of forced labor (July 2021), and the proposed directive on Corporate Sustainability Due Diligence (CSDD) (February 2022). The proposed Regulation would be linked to the proposed CSDD directive as — effective due diligence conducted by companies under the CSDD could be taken into account by national authorities when assessing the use of forced labor for products.
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