GERMANY Law and Practice Contributed by: Jan-Ove Becker and Lukas Heber, Littler
Littler Germany Neuer Wall 43 20354
Hamburg Germany
Tel: +49 40-554 34 56-0 Fax: +49 40-554 34 56-39
Email: bd@littler.de Web: www.littler.de
1. Introduction 1.1 Business and Human Rights: A Summary
companies in Germany to adequately observe human rights and environmental due diligence obligations in their supply chains. These due diligence obligations include, for example, the establishment of risk management, annual and event-driven risk analyses, and documentation and reporting obligations. Violations of the due diligence obligations can be punished with a fine of up to 2% of the company’s average annual turnover (see 2.2.2 Corporate Human Rights Due Diligence Legislation ). Although the LkSG is still very new, the new gov - ernment has already announced its intention to abolish it. Whether and when this will happen is still uncertain. What is certain, however, is that the issue of business human rights will remain subject to constant (legal) changes and reforms, at both European and national level.
The responsible shaping of a sustainable and successful global economy is of significant importance to the Federal Republic of Germany. Few countries are as economically integrated, and Germany considers the issue of business and human rights to be an imperative. The legal system in Germany has always con - tained many standards that focus on the protec - tion of human rights, including in the economic sphere. These standards are binding for all com - panies, which have long been obliged to respect human rights under international and European human rights treaties such as the European Convention on Human Rights (ECHR). These obligations have been supplemented and clari - fied in recent years by many specific EU legal provisions on business and human rights (see 2.1 International ). In national law, the Act on Corporate Due Dili - gence Obligations in Supply Chain ( Lieferketten- sorgfaltspflichtengesetz , LkSG), which came into force in Germany on 1 January 2023, is of particular importance. This law obliges larger
2. Legal Framework 2.1 International
Germany has signed, ratified, adopted or oth - erwise supported a wide variety of international agreements that relate to BHR. These include, for example, the UN Guiding Principles on Business and Human Rights, which Germany
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