1. What are the key national laws on forced labour, modern slavery and/or human rights in your country?
  2. Are there any sector-specific rules?
  3. Are there any obligations for companies, e.g. reporting, due diligence, supply chain transparency?
  4. Are there any government reporting requirements?
  5. Are there any penalties and enforcement mechanisms?
  6. Potential criminal, civil or administrative penalties for violations?
  7. Risks for directors or executives?
  8. Upcoming laws, regulations, etc?

jurisdiction

Germany
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1. What are the key national laws on forced labour, modern slavery and/or human rights in your country?

  • Basic Law (Grundgesetz - GG, Germany's constitution)
  • Criminal Code (Strafgesetzbuch - StGB)
  • General Act on Equal Treatment (Allgemeines Gleichbehandlungsgesetz - AGG)
  • Minimum Wage Act (Mindestlohngesetz - MiLoG)
  • Working Time Act (Arbeitszeitgesetz - ArbZG)
  • Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz – LkSG)

2. Are there any sector-specific rules?

No, there no sector specific rules.

3. Are there any obligations for companies, e.g. reporting, due diligence, supply chain transparency?

Under LkSG, in-scope companies have a number of due diligence obligations, including reporting. 

4. Are there any government reporting requirements?

Under LkSG, in-scope companies must report annually on due diligence measures taken during previous financial year.

5. Are there any penalties and enforcement mechanisms?

Administrative fines of up to EUR 100,000, EUR 5 million, EUR 8 million or two percent of the annual turnover – maximum amount depends on type of due diligence obligation breached by in-scope company.

As a rule, exclusion from award of public contracts for up to three years – but only if decision on administrative fine of a certain minimum amount is final and binding.

6. Potential criminal, civil or administrative penalties for violations?

No criminal liability of companies under German law. (For criminal liability of natural persons, see next question.)

No civil liability for breach of due diligence obligations based on LkSG. Civil liability based on other laws possible, but difficult under German civil law.

For administrative fines, see previous question.

7. Risks for directors or executives?

Criminal liability not imposed by LkSG, but breach of due diligence obligations may in certain (rare) cases amount to criminal act under general criminal law.

Civil liability: Direct claim by third party against director (external liability) unlikely to be supported by court under German law. Recourse claim by company against director (internal liability) depends on nature of original claim: If civil, recourse possible; if administrative fine, courts have taken different views.

Administrative fines of up to EUR 100,000, EUR 500,000 or EUR 800,000 – maximum amount depends on type of due diligence obligation that was breached. 

8. Upcoming laws, regulations, etc?

No.

Note 1: According to coalition agreement of new German government, reporting obligation to be abolished and sanctions to be abolished for remaining due diligence obligations, except for "massive human rights violations".

Note 2: LkSG will need to be adjusted in order to comply with CSDDD.