Details of the German Supply Chain Act

An agreement has now been reached within the grand coalition on the Supply Chain Act. It is expected to be passed before the end of this legislative period and will apply to companies with more than 3,000 employees from 2023. From 2024, the law will then also affect companies with more than 1,000 employees.

Unions and NGOs will get with the law the possibility for the affected workers to sue in German courts. However, this only concerns their rights per se and not, for example, civil claims for damages. For such were expressly excluded in the law.

However, as a sanctioning option, the law provides for the imposition of a fine on companies that do not comply with the relevant regulations.