GERMANY Law and Practice Contributed by: Jan-Ove Becker and Lukas Heber, Littler
2.2.3 Modern Slavery Legislation As mentioned under 2.2.2 Corporate Human Rights Due Diligence Legislation , the LkSG prohibits child labour, forced labour and slavery. Other practices resembling slavery, and human trafficking, for example, are also prohibited. Regarding the obligations and consequences of non-compliance, see 2.2.2 Corporate Human Rights Due Diligence Legislation . Furthermore, at the end of last year, the EU member states adopted the EU Forced Labour Regulation. This regulation will apply from 14 December 2027. The EU Forced Labour Regu - lation contains provisions that prohibit compa - nies from placing and making available products made with forced labour on the EU market or exporting them from the EU market. Forced labour means all work or services exacted from any person under the menace of any penalty and for which the person has not offered themselves voluntarily. The EU Forced Labour Regulation is not limited to certain companies or company siz - es and not limited to specific types of products. If companies fail to comply with the EU Forced Labour Regulation, authorities can order the pro - hibition of placing, making available, or export - ing such products. In addition, they may require affected products to be withdrawn or removed from the market. The consequences for non- compliance are still unclear, as penalties will be determined by the member states themselves. However, it is expected that there will be a com - prehensive fine system with substantial financial penalties, as is often the case (see penalties of non-compliance with the LkSG in 2.2.2 Corpo- rate Human Rights Due Diligence Legislation ).
2.2.4 Transparency and Reporting Requirements
In Germany, various national laws and interna - tional directives contain reporting requirements on matters relating to BHR. Section 289c/315c of the German Commercial Code (Handelsgesetzbuch, HGB) Section 289c/315c HGB is the national transfor - mation law for the European Union Non-Finan - cial Reporting Directive (CSRD) and contains transparency and reporting requirements. In addition to environmental aspects, social aspects and information on combating corrup - tion and bribery, the following information must be provided: • measures to ensure gender equality, working conditions, respect for the rights of employ - ees and trade unions, health protection and safety at work; and • information on the prevention of human rights violations. The report can be published in different ways: • Option I – in the management (group) report (( Konzern-) Lagebericht ) in a separate section; • Option II – in a separate “non-financial” (group) report ( nichtfinanzieller (Konzern-) Ber - icht ), which can either be disclosed (Option II 1) together with the management report, or (Option II 2) on the company’s website (in this case, (Option II 2a) either a reference to the internet source must be included in the report, or (Option II 2b) as a separate sec - tion in another consolidated report (eg, as a sustainability or CSR report)); or • Option III – which involves integration into the other consolidated report.
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