On 26 June 2026, the European Commission (Commission) published guidelines on the EU Forced Labour Regulation (EU FLR). The guidelines are intended to support implementation of the EU FLR by providing guidance to competent authorities, customs authorities, economic operators, and other stakeholders. The guidelines also form part of the broader Forced Labour Single Portal, which brings together resources and information to support implementation of the EU FLR.
The EU FLR was adopted on 19 November 2024 and will become applicable on 14 December 2027, at which point enforcement will begin. The EU FLR prohibits economic operators from placing products made with forced labour on the EU market, and from exporting such products from the EU. The EU FLR has a broad scope, applying to all products made with forced labour in whole or in part, regardless of their place of origin, type, or sector. Notably, this includes strategic, military, and defence products, which have recently been the target of derogations under EU environmental and chemical regulations.
Importantly, the guidelines are purely an advisory document and are not legally binding. Key areas covered in the guidelines include:
Whilst the EU FLR does not impose any specific due diligence obligations on companies, the guidelines clarify how such practices can help companies comply with EU FLR, recognising due diligence as a useful tool to address forced labour in supply chains. In addition, several other pieces of EU law (including the Corporate Sustainability Due Diligence Directive) create due diligence or reporting requirements related to forced labour risks, and compliance with these may help demonstrate economic operators’ efforts to identify and address forced labour risks during potential investigations.
The guidelines set out the Organisation for Economic Co-operation and Development (OECD) six-step due diligence framework as a globally recognised, structured approach for companies to identify and address human rights risks in their operations and supply chains. Companies that are not subject to other specific legal obligations may choose to voluntarily apply the OECD due diligence process to assist with compliance with the EU FLR. However, the guidelines stress that companies are free to decide how best to deal with forced labour risks, noting that appropriate measures will depend heavily on their size, structure, and sector.
The Commission will be hosting several webinars starting in September 2026, beginning with a general introduction to the EU FLR and the preparedness package. Subsequent webinars will cover guidance and support tools for SMEs, followed by sector-focused sessions on risks and compliance strategies through to November 2026, ahead of the 14 December 2027 application date.
Businesses should begin preparing now to ensure they are ready for compliance. As a first step, companies should assess whether they fall within the scope of the EU FLR as an “economic operator”. Companies should also review their supply chains to identify potential forced labour risks, consider the extent to which existing due diligence frameworks and processes may assist with compliance, and monitor the Commission’s forthcoming webinars and any further guidance as part of their preparations.
This article was prepared with the assistance of Samantha Banfield and James Thompson at Latham & Watkins.
Latham & Watkins will continue to monitor developments relating to the EU’s human rights regulations and the broader European sustainability regulatory landscape.