Forced labour has two essential, interrelated characteristics: firstly, involuntariness, i.e. the absence of (free and informed) consent to take up the work or to approve of the working conditions; and secondly, the use of coercion, e.g. through (the threat of) punishment. Withholding wages is by far the most common form of coercion. Approximately $ 236 billion in profits are generated annually through forced labour. It mainly takes place in the private sector, but is also in some cases imposed by the state.

The prohibition of forced labour is one of five core labour standards of the International Labour Organization (ILO) and was already laid down in Convention No. 29 from 1930. Some countries, such as the United States and Canada, have laws to effectively implement the ban. The EU is now following suit. The European Parliament adopted the Forced Labour Regulation on 23 April 2024, followed by the Council on 19 November 2024.

Ban on products made with forced labour
Products made with forced labour are banned on the EU market. These products may not be placed or made available on the market, nor may they be exported. The ban applies to all product types and industrial sectors and also to distance selling (online trade), provided that the offer is made to an end user within the EU. Products that violate the ban will be withdrawn from circulation. Member states' national authorities must take action against infringements within their territories. The EU Commission is responsible for cases of alleged forced labour outside the territory of the Union.

The Forced Labour Regulation (FLR) does not impose a due diligence duty on companies. However, since the product is withdrawn from circulation in the event of a violation, the regulation creates a strong incentive for economic operators to ensure that products have not been made with forced labour. Large companies are obliged to exercise due diligence with regard to forced labour under the Corporate Supply Chain Due Diligence Directive (CSDDD). The ban on products made with forced labour applies regardless of the size of the company. The EU Commission will therefore issue guidelines for economic operators to fulfil due diligence with regard to forced labour by mid-2026 and develop support measures for SMEs.

The database to be set up by the EU Commission will play an important role. Its purpose is to collect regularly updated information on forced labour risks, although no information on companies will be made public. With regard to state-imposed forced labour, specific economic sectors in certain geographical areas will be listed.

What are other countries doing?
In the USA, Section 307 of the Tariff Act 1930 prohibits the import of products made with forced labour. The US Customs and Border Protection agency is responsible for ensuring that these products do not enter the US market. The agency's Withhold Release Orders are published online, including details of the product and the company or entity in which forced labour is presumed to take place. Importers can only obtain a release for the products to be placed on the market if they can prove that no forced labour is involved.

Furthermore, the United States have a ban on imports of products from Xinjiang, the autonomous region of Uyghurs in China, in place since 2021. The Uyghur Forced Labor Prevention Act (UFLPA) establishes the (rebuttable) legal presumption that products from this region, as well as products originating from an entity listed in the UFLPA entity list, were manufactured using forced labour and therefore may not be imported. The United Kingdom, Australia and Canada have also introduced Modern Slavery Acts, which primarily contain reporting requirements for companies with regard to the risk of forced labour.

Conclusion
Together with trade unions and civil society organisations, AK demands that affected workers receive remediation if cases of forced labour are exposed. Unfortunately, this is not regulated in the Regulation. Furthermore, from AK’s point of view, the burden of proof in the Regulation is regulated one-sidedly at the expense of authorities and the Commission. Nevertheless, AK welcomes the EU ban on products made with forced labour. The Regulation was published in the Official Journal of the European Union on 12 December 2024. The new rules will apply from the end of 2027.

Further information:
Regulation (EU) 2024/3015 on prohibiting products made with forced labour on the Union market
AK EUROPA: Good news for human rights and the environment. Green light for the EU Supply Chain Act and the EU ban on products from forced labour
AK EUROPA: Position Paper - Prohibition of products made with forced labour on the Union market  
IAO: Global Estimates of Modern Slavery
IAO: Forced Labour Observatory
IAO: Annual profits from forced labour amount to US$ 236 billion, ILO report finds
IAO: Forced labour, modern slavery and trafficking in persons
EU Commission: EU-US social partners' joint recommendations on combating forced labour