EUFLR is on the horizon- Will your business keep up?
- caoilinnokelly
- Apr 1
- 3 min read
The European Union Forced Labour Regulation (EUFLR) is the latest piece of EU legislation addressing sustainability and human rights. Adopted in December 2024, the regulation aims to combat forced labour by prohibiting the placement of affected products on the EU market. It will become applicable three years after its entry into force, with implementation expected by December 14, 2027 . This regulation is not affected by the EU Omnibus proposal.
The EUFLR establishes a framework for identifying and removing products made with forced labour on the internal EU market as well as products imported from abroad.
Why is the EUFLR needed?
Forced labour remains a widespread global issue. According to the International Labour Organisation, there are more than 50 million people in situations of forced labour. Forced labour comes in many forms, including:
Coercion and threats to compel people to work against their will
Systematic withholding of wages
Abuse of vulnerable workers
Violence and deprivation of basic needs
Child labour
These forms of forced labour are not equally distributed across the population, certain groups- particularly women and children, and those in developing countries are disproportionately affected. Although forced labour can take many forms and is not resigned to a person or area.
The EUFLR aligns with the Sustainable Development Goal 8.7 which calls for an end to modern slavery and child labour by 2025 and the eradication of all forms of forced labour by 2030.
How does the EUFLR work?
The EUFLR bans the import, sale and export of products made with forced labour. This means it is prohibited to place any products to be sold on the EU market made with forced labour. It is important to note that this also include exporting goods from the EU if they are made with forced labor. The regulation applies to all stages of the supply chain including production, manufacturing and processing.
The aim for the EUFLR is to ensure ethical practices within and across supply chains. Like the European Union Deforestation Regulation (EUDR), the EUFLR applies broadly to all economic operators, meaning businesses of any size that places products on the EU market.
What are the elements of the EUFLR reporting process?
Due Diligence reporting: Businesses must demonstrate compliance with labour standards
Risk assessments: relevant authorities will conduct investigations prioritising severe violations and large-scale forced labour cases.
Data Transparency: The European Commission will create a database identifying high-risk products and regions. It will alert the relevant authorities who are responsible for national-level compliance, to high risk areas and products.
Confidential reporting system: A single information submission point will allow individuals and organisations to report potential labour violations.
How should companies prepare for the EUFLR?
To ensure compliance, businesses should start preparing early by implementing the following steps:
✅ Familiarise yourself with EUFLR guidelines
Review the UN Guiding Principles on Business and Human Rights, the OECD Due Diligence Guidance, and the German LkSG Guidelines as foundational resources. The German LkSG act is focused on due diligence for forced labour among other factors, check out our explanatory blog on the LkSG here.
✅ Map high-risk goods and suppliers
Identify products that are more likely to be linked to forced labour, such as those with complex supply chains or originating from regions with weak labour protections.
✅ Engage with stakeholders
Strengthen communication with suppliers, industry groups, and certification bodies to ensure transparency and ethical sourcing.
✅ Prioritize risk assessment and mitigation
Develop a risk-based approach by identifying the highest-risk products and regions in your supply chain.
Utilize platforms like Agriplace to track Environmental, Social, and Governance (ESG) risks at the product and regional level. The Agriplace platform not only gives an overview of the various environmental, social and governance risks throughout the supply chain but also allows you to measure risks based on your specific mix of products and regions. This gives Agriplace users a clear and comprehensive overview of the compliance of their supply chain.
Future Goals
The EUFLR represents a significant step in eliminating forced labour from global supply chains. With implementation on the horizon, businesses must take proactive measures to ensure compliance, enhance transparency, and uphold ethical sourcing practices. By preparing now, companies can mitigate risks and protect their brand integrity.
Curious about what Agriplace can do to track your ESG risks?
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