According to our partner association VFI (German Importers), on 12 February 2021 the agreement on the planned German Supply Chain Act was presented at the press conference of the Ministries for Economic Cooperation and Development (BMZ), Labour and Social Affairs (BMAS) and Economic Affairs and Energy (BMWi). Companies are expected to hold their direct suppliers very closely to account, but also to keep an eye on the entire supply chain. If a company becomes aware of an irregularity in the supply chain, it should be committed to take remedial action. According to the ministers, the aim is to combat child labour and paltry wages in the future, but also to ensure greater environmental protection. In a phased plan, the Supply Chain Act is to apply to companies with 3,000 or more employees starting in 2023, followed by companies with 1,000 or more employees as of 2024. Liability under civil law is off the table and will be replaced by a list of offences and fines. Moreover, such companies can be excluded from public tenders.
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