EU Forced Labour Regulation: Commission publishes long-awaited implementation guidelines

On 30 June 2026, the European Commission published its guidelines on the application of the EU Forced Labour Regulation (FLR), together with the launch of a dedicated Forced Labour Single Portal. 

We highlight below the key takeaways and implementation steps businesses should consider. 

Background

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

The Regulation is particularly far-reaching, as it applies to all products (rather than to a limited list), across all sectors, irrespective of the provenance of the goods (including those made within the EU) or any de minimis threshold, and to any EU or non-EU economic operator without turnover or employee thresholds (see more in our FLR Quick Guide). 

As we previously reported, the Commission was required to publish these guidelines ahead of the FLR’s entry into application on 14 December 2027. The guidelines provide practical clarification on the Regulation’s scope, enforcement and implementation. They are addressed to domestic authorities, economic operators, consumer associations, civil society organisations, trade unions and other stakeholders. Although non-binding, these guidelines provide helpful explanation of how the FLR is expected to work and be enforced in practice.

The Commission will also publish a EU forced labour risk database, currently still in development, providing information on products and geographical areas where forced labour risks have been documented in “credible, publicly available sources”, focusing on risks that have been documented as widespread and severe. Economic operators may use the database to voluntarily assess the presence of forced labour risks in their operations and supply chains, and the authorities as one of the sources available to assess the likelihood of a ban-violation.

Guidelines’ key takeaways

Value chain due diligence is recommended, albeit not required

As per the guidelines, the FLR imposes an obligation of result on economic operators; they must ensure that products made with forced labour do not enter, circulate within or leave the EU market, but how this is achieved is up to them. 

This may change in the future, as the Commission has been granted delegated powers to establish further formalities for listed products or product groups. 

At the same time, the guidelines also call on national competent authorities and the Commission to comply with the principle of proportionality when implementing the FLR - and the guidelines go to great lengths in providing examples and optionality for SMEs’ implementation of due diligence measures.

Although the FLR does not impose specific due diligence requirements, due diligence is recognised as a useful tool to help companies comply with the FLR. The guidelines set out guidance on how due diligence can be applied in relation to forced labour, drawing heavily on the voluntary six-step OECD-based framework (itself an important source of inspiration for EU and national mandatory due diligence regimes):

• Policies and management system: This can be done through stand-alone forced labour due diligence policies or systems, or by adapting existing due diligence processes and policies to identify and address forced labour risks. They should be developed in consultation with stakeholders and include a commitment to the ILO’s principles, internationally recognised forced labour standards and domestic labour laws, a description of the company’s approach to due diligence, and expectations for employees, subsidiaries and partners to adhere to international standards. These policies should be made public and communicated to all employees. They should be reviewed regularly. Responsibilities for implementing these policies must be assigned across the relevant departments and should include senior-level or board oversight. Training and internal incentives to comply should be made available to workers. Expectations regarding suppliers and other partners should be included in contracts. They should also form part of the criteria used when assessing a new business relationship.

• Risk identification and adverse impact assessment: Companies should carry out a “broad scoping exercise” of their operations and business relationships to identify where and with whom forced labour risks are most likely to occur and be most significant. The guidelines also list a number of risk indicators (e.g. forced recruitment, exploitation of debt, degrading working conditions, etc.) that should help companies identify forced labour in their operations and supply chains. This scoping should be reviewed regularly.

• Cessation, prevention and mitigation: In line with the risk-based approach, companies should address the most significant risks first (by severity and likelihood), including state-imposed forced labour risks. Prevention is the primary goal, but companies should also use their leverage to affect change in their business partners. Responsible disengagement is treated as a last resort, although the Commission opines that it may be the only viable solution in cases of state-imposed forced labour (particularly where there is little evidence of willingness or commitment to reform).

• Monitoring: Ongoing monitoring should be based on qualitative and quantitative indicators that go to evidencing effectiveness of actions taken, and should cover the company’s operations as well as its business partners. The outcomes of monitoring are expected to be used as part of a continuous improvement feedback loop.

• Communication: Relevant forced labour due diligence information should be communicated publicly. Sensitive information should be anonymised. Particular attention must be given to state-imposed forced labour, as disclosure could lead to retaliation against local partners or workers.

• Provide or cooperate in remediation: The degree of responsibility will depend on the company’s involvement in the forced labour impact. When the company causes or contributes to the impact, it should provide or cooperate in the remediation (e.g. restitution, compensation, disciplinary measures, etc.). Where that is not the case, it may use its leverage to encourage the partner to remediate the impact. Companies should also provide or cooperate with remediation and grievance mechanisms.

The guidelines also contain a non-exhaustive list of types of information which lead competent authorities might request during the investigative process. This notably includes corporate policies, training materials, sectoral risk-assessments, purchase orders, reports on due diligence efforts undertaken, information gathered with traceability tools, supply chain maps, etc. Preparing documentation in line with this list is therefore a useful step, as it signals what authorities expect for compliance purposes.

The guidelines stress the potential for collaboration between industry players (and through industry or multi-stakeholder associations) to align on best practices, pool knowledge, increase leverage and make due diligence measures more effective. 

Due diligence and reporting requirements related to forced labour risks under other pieces of EU legislation (e.g. CSDDD, CSRD, etc.) can also help demonstrate economic operators’ efforts – and indeed one might expect these guidelines to feed into or at least be consistent with the forthcoming guidelines to be issued under CSDDD. 

As expected, companies are also expressly invited to consult international due diligence guidelines, such as the OECD Guidelines for Multinationals and Due Diligence Guidance, as well as the UNPGs and others. 

Companies within the scope of the CSDDD (see our latest briefing) should consult the future Commission guidelines to be issued by 26 July 2027.

Wide scope of application is confirmed

The guidelines also confirm that the FLR applies to all products made with forced labour, regardless of their origin, quantity, type or sector (including strategic, military and defence products), that are placed or made available on the EU market, or exported therefrom, as from 14 December 2027. This includes products placed on the market, made available or exported after that date, even where products themselves, or their components, were produced or imported into the EU before 14 December 2027.

Products offered for sale online and distance sales are also covered if the sale offer is targeted at end users in the EU.

The FLR applies to all economic operators, including upstream producers, manufacturers, importers, exporters, retailers and product suppliers. SMEs will benefit from dedicated support measures.

The definition of forced labour has also been further clarified: it covers state-imposed forced labour, privately imposed forced labour, and forced child labour. Notably excluded are domestic work, compulsory military service, and work as consequence of a court conviction, among others. 

National authorities’ extensive investigative and enforcement powers are also confirmed

The investigation process is described at length in the guidelines. 

Some of the most salient points are that:

• Investigations can relate to individual parts, components, or complete products, whether intermediate or finished, as well as to product lines, groups of similar products, or products originating from a particular factory or facility. If there is a suspicion of systemic or widespread use of forced labour, the scope may be extended to other products from given suppliers or geographic areas. 

• As noted, the guidelines confirm that competent authorities must apply proportionality and a risk-based approach when assessing potential violations and deciding whether to investigate. Relevant criteria include the scale and severity of the suspected forced labour, the quantity or volume of products concerned, and the share of the part of the product suspected to have been made with forced labour in the final product. 

• While information gathered during the investigative process must be treated as confidential, the identity of the economic operator and of the product suppliers and manufacturers involved may be disclosed in case of a decision establishing a violation of the FLR (ban-violation decisions), where necessary to identify the banned product. 

• Failure to cooperate with the authorities will have negative consequences for the economic operators under investigation. Non-cooperation with a competent authority or the Commission constitutes evidence which, in combination with other factual elements, can be used to establish a violation. Companies should designate a specific contact person or department to handle these interactions.

• Competent authorities must provide “credible evidence” that forced labour was used to make the products under investigation and that the economic operators have made those products available on the EU market or exported them from the EU. 

• In case, further to their investigation, authorities conclude to a ban-violation, their decisions (that will, as a general rule, impose a prohibition to make available the products on the EU market and the withdrawal of products already made available) must be published on the Forced Labour Single Portal. They will also be communicated to customs authorities through the Information and Communication System on Market Surveillance (ICSMS). Ban-violation decisions include orders to withdraw and to dispose of the non-compliant product.

• Such decisions apply not only to the economic operator named in the decisions, but to any business placing or making available the banned product on the EU market. Businesses should therefore monitor all published decisions closely, including those arising from investigations targeting their suppliers or competitors.

• Disposal must comply with the waste hierarchy set out in the EU Waste Framework Directive (i.e. recycling and, where not possible, rendering the product inoperable). For apparel, clothing accessories and footwear, these may be destroyed in line with Commission Delegated Regulation 2026/296. Disposal may not benefit the economic operator concerned.

• Where products form part of supply chains of strategic or critical importance to the EU, as defined by reference to relevant EU legislation (e.g. EU Net Zero Industry Act, the Critical Raw Materials Act, etc.), competent authorities may instead order the product be withheld for a defined period of time rather than requiring disposal.

• Individuals, associations and other stakeholders can submit information and supporting evidence on alleged cases of forced labour via the Single Information Submission Point, which may lead to a decision to open a formal investigation by the Commission and competent authorities. 

Penalties apply for non-compliance with decisions, not the ban violation itself

Penalties are not imposed for violating the forced labour ban itself, but for failure to comply with a ban-violation decision – for example, by continuing to sell banned products, failing to withdraw them, or failing to replace affected components. 

The guidelines set out a five-step calculation methodology covering gravity, duration, mitigating and aggravating circumstances, applicable thresholds, and the overarching principles of effectiveness, proportionality and dissuasiveness - with two illustrative approaches: product-value-based and turnover-based. 

Member States must notify their penalty rules to the Commission by 14 December 2026.

What should businesses do now?

With the FLR entering into application on 14 December 2027, businesses should use the publication of these guidelines as an opportunity to:

• Review existing policies and management systems, to ensure that forced labour risks are fully integrated. Alignment with the six-step OECD framework may help demonstrate to authorities that forced labour risks are being adequality identified and addressed; 

• Map and review supply chains for forced labour risks, with particular attention to high-risk geographic areas and sectors, such as potential exposure to state imposed forced labour. Monitor those to be identified in the upcoming EU forced labour risk database;

• Use the detailed lists, provided in the guidelines, of documentations that may be requested during investigations as a roadmap for compliance preparation;

• Ensure adequate first response team and policies, to be ready to answer authorities’ queries and decisions under a challenging timeframe (depending on the circumstances, operators may be given as little as 30 working days to answer information request, and 10 working days to comply with an infringement decision);  

• Consult the Anti Forced Labour preparedness checklist and other useful resources provided on the Forced Labour Single Portal to navigate the requirements of the regulation and strengthen responsible sourcing practices;

• Consider the interplay between the FLR and other due diligence and forced labour regimes, including the CSDDD, EUDR, U.S. UFLPA, French, German, and Norwegian due diligence laws, etc. (see our quick guides here).

The Commission has also set out a timetable for a series of webinars aimed at getting ready for FLR implementation. Beginning in September 2026, these include a general introduction, SME session and sector sessions (providing some indication of where the Commission thinks the highest risks of forced labour are likely to arise). Links to register for these webinars can be found in the section called “Webinars trainings” at the bottom of this page.

Further reading

For more information on the FLR, see our previous blog posts:

• ESG Quick Guide: EU Forced Labour Regulation

• ESG Quick Guide: EU Corporate Sustainability Due Diligence Directive (CSDDD / CS3D)

• Other ESG Quick Guides 

• Business and Human Rights collection of materials 

If you would like to discuss any aspect of the Forced Labour Regulation or how to prepare for its application, please reach out to the contacts on this post, or to your usual Linklaters contacts.