On 30 June 2026, the European Commission issued its Guidelines on the Forced Labour Regulation (FLR). The Guidelines were accompanied by the launch of an online information portal which is aimed at helping companies to prepare for the application of the rules. Despite the fact that competent authorities were expected to already have been announced, the publication of the Guidelines is accompanied by a provisional list of national competent authorities, which is subject to further changes. The database for forced labour risk is still under development.
The key principles of the Guidelines
A central theme of the Guidelines is the role of due diligence. While Article 1(3) of the FLR confirms that the Regulation does not create new due diligence obligations, the Guidelines explain that due diligence, structured around the OECD’s six-step framework, will play a crucial role in determining whether a “substantiated concern” exists during forced labour investigations. Thus, while robust due diligence is not a legal obligation under the FLR, there will be a strong relation with how competent authorities will enforce the rules.
The Guidelines also clarify the relationship between the FLR and related EU legislation, notably including the Corporate Sustainability Due Diligence Directive (CSDDD), the Net Zero Industry Act, the Critical Raw Materials Act, and the Conflict Minerals Regulation. Following the postponement of the CSDDD’s application until July 2029, the Guidelines clarify that due diligence remains as best practice and relevant evidence rather than a parallel legal requirement.
The Guidelines reiterate the internationally recognised definition of forced labour contained in ILO Convention No. 29 and the 2014 Protocol. The ILO’s definition contains 11 indicators of forced labour, that can be used as a reference for investigations. The Guidelines do not accept any fixed numerical threshold for these indicators but instead requires a reasoned assessment of the available evidence. In what concerns state-imposed forced labour, the Guidelines confirm that credible structural evidence, such as reports from the ILO, UN bodies, courts, and academic research, may satisfy the evidentiary threshold without requiring product-specific proof of coercion. Forced child labour is also interpreted by the relevant ILO conventions and EU legislation, which ensures that Article 3 of the FLR applies automatically once forced child labour is identified. The Guidelines encourage authorities to prioritize such investigations.
With regard to the Regulation’s risk-based approach to enforcement, the Guidelines explains that competent authorities should orient their enforcement depending on the scale and severity of forced labour, the volume of products on the EU market, and the significance of the suspected forced labour component. These statutory criteria are supplemented by geographic, sectoral, and operator-level risk factors, based on the forced labour risk database (still not available), strategic supply chains identified under related EU legislation, and the quality of an operator’s due diligence. The Guidelines also clarify the allocation of investigative powers, detailing how the Commission will be responsible for investigations involving forced labour outside the EU, while Member State authorities will be leading on investigations within their territory. Cross-border coordination will be facilitated through the Union Network Against Forced Labour Products.
The Guidelines further provide detailed clarification of the applicable procedural framework, covering preliminary assessments, full investigations, field inspections, and final decisions. They notably clarify that:
- The 9-month investigation period is indicative rather than mandatory
- The limited derogation allowing products of particular societal value to be retained instead of disposed
- Enforcement decisions adopted by one competent authority must be recognized throughout the EU.
Importantly, the Guidelines confirm that products subject to a prohibition decision must be withdrawn from the EU market. When the decision includes the disposal of the products or of replaceable parts of the product, economic operators will be given reasonable time to extract and replace these parts of the product. The Guidelines also clarify that operators seeking the review of a decision must provide new evidence of compliance and cannot solely rely on maintaining contractual relationships with implicated suppliers.
Finally, the Guidelines establish a structured approach to penalties, enabling Member States to calibrate sanctions according to factors such as the seriousness and duration of the infringement, prior violations, cooperation, and financial benefit obtained, while empowering the Commission to monitor proportionality across Member States.
Conclusion
The European Commission’s Guidelines on the Forced Labour Regulation provide some operational guidance on the Regulation’s implementation, covering due diligence, risk assessment, enforcement, penalties, and the links with other EU legislation. Although it is not a legally binding document, it constitutes a legal interpretation that both businesses and competent authorities can consult to comply with the rules. Companies must now prepare their compliance efforts ahead of the application date of 14 December 2027.