What Constitutes Forced Labour under EU Rules
01 Core of the New Rule: Excessive Overtime Qualifies Directly as Forced Labour
Breaking away from previous regulations, the landmark update under the Forced Labour Regulation (FLR) explicitly incorporates excessive working hours into the criteria for identifying forced labour, aligned closely with International Labour Organization (ILO) standards.
Clear statutory working‑hour thresholds are set:
✅ Maximum 8 working hours per day
✅ Maximum 40 working hours per week
Key point: Violations cannot be waived even if employees consent to overtime or sign voluntary agreements.
This provision targets widespread pain points within domestic manufacturing sectors.
Many labour‑intensive enterprises operate permanent 12‑hour two‑shift rosters or regular 996 schedules. Workers get very few rest days each month and long working hours are commonplace. Under the new EU standards, such prevailing employment models carry substantial compliance risks.
In short: industry practices once regarded as “business‑as‑usual” may now be treated as violations in international trade.
02 Why Has the EU Issued This Regulation? Rooted in Fair‑Competition Objectives
The EU adopted this regulation not merely out of goodwill for worker rights. Its core objective is to safeguard fair‑market competition within the bloc.
EU‑based companies must adhere to strict labour statutes governing working hours, wages, social security and workplace conditions. Labour costs are high and fully transparent.
By contrast, certain overseas producers achieve extremely low product pricing by extending working hours, cutting employee benefits and suppressing labour expenses, creating competitive pressure on EU domestic industries.
From the EU’s perspective, cost advantages gained at the expense of workers’ rights represent unfair competition, squeezing margins for local businesses and threatening domestic jobs and remuneration levels.
A balanced perspective is necessary:
The EU’s high‑standard labour framework is built upon its advanced economic development. Direct replication across countries at different developmental stages creates genuine practical adaptation challenges. Nevertheless, the regulation delivers positive momentum toward global employment standards and curbing reckless overwork culture.
03 End‑to‑End Supply‑Chain Scrutiny: Labour Violations Even for a Single Screw May Seize an Entire Shipment
The most stringent feature of the FLR is its penetrating full‑supply‑chain oversight with no blind spots.
Reviews cover the complete product lifecycle: raw‑material extraction, production and processing, component manufacturing and finished‑goods assembly across all tiers of suppliers.
Oversight extends well beyond large primary manufacturers. Labour practices of second‑tier, third‑tier and even small‑scale downstream workshops fall within regulatory scope.
Practical example:
A formally‑compliant furniture exporter maintains proper internal hiring, social‑security contributions and attendance records. However, inexpensive screws and minor components are sourced from small subcontract workshops where cash‑based salary payments, incomplete social‑security enrolment and deficient employment documentation exist.
Consequence: Minor labour non‑compliance upstream can result in full container‑level cargo detention, cancelled orders and massive financial losses for the exporter.
Under this framework, major foreign‑trade enterprises must cascade compliance requirements down the value chain, compelling suppliers at every level to standardize employment practices. Countless grassroots workers previously outside regulatory coverage now receive enhanced rights protection.
04 Imperative for Enterprises: Fair Employee Treatment Becomes Non‑Negotiable
Implementation hinges on enterprises self‑demonstrating compliance.
While the statute does not formally reverse the burden of proof, in practical enforcement, once authorities initiate an investigation, companies must submit full‑supply‑chain labour‑compliance evidence within 30 working days.
Put plainly: failure to prove an absence of forced‑labour risks and unlawful overtime results in loss of EU market access.
This fundamentally reshapes corporate mindsets on human resources:
Previously, compliant labour practices were viewed as an optional cost‑increasing measure.
Today, compliant employment alongside guaranteed rest entitlements and staff benefits is a survival prerequisite for retaining overseas orders.
Accordingly, growing numbers of export‑oriented enterprises are proactively adjusting working‑hour schemes, completing social‑security contributions and upgrading workplace conditions, shifting from reactive remediation to proactive compliance.
05 Beyond Trade Rivalry: Advancement of Worker Rights
Admittedly, the FLR imposes notable compliance burdens on export‑focused firms. In the long run, however, it helps rectify distorted overwork cultures.
The 8‑hour workday, weekly rest days, statutory overtime pay and comprehensive social‑security coverage are already legal entitlements guaranteed by China’s Labour Law.
For a long time, excessive overtime has been normalized and even glorified as “hard‑working dedication”, gradually eroding many workers’ statutory rights.
Notably, China has actively promoted implementation of ILO labour conventions since 2022. Improving labour protection and raising employment standards form an inherent part of domestic industrial upgrading and social progress. The new EU regulation merely accelerates this existing trajectory.
Gonex EU Human Resources Solutions
Overseas enterprises expanding into the EU may scan to connect with dedicated cross‑border HR consultants for customized end‑to‑end EU employment compliance solutions. A specialist will follow up within 1‑2 working days after submission. Should your organization require HR support for other jurisdictions, consultants can also deliver tailored global labour‑compliance advisory services.
Why Gonex?
Experienced Management Team: each member in the team has 10+ years experiences in Overseas Human Resources Management, composed of seasoned HR professionals.
Powerful connection: Gonex has established over 10 entities worldwide, along with more than 30 stable partners, together offering the most comprehensive overseas human resource services to our clients.
Strict compliance with laws and regulations: At every step in our service process, Gonex strictly adheres to local laws and regulations, ensuring our clients completely avoid any legal disputes.
Competitive price: Gonex’s services are 20% more affordable compared to other companies in the industry, allowing our clients to allocate more resources to their core business.
What Gonex offer?
Employment of Record: This service helps clients legally hire employees in countries or regions where they do not have a legal entity established.
Payroll BPO service: This includes payroll project implementation plan development, project deployment, payroll calculation, payment of funds, administration of statutory and supplementary benefits, customized reporting, and other comprehensive payroll services.
Global Mobility: Based on the company’s internationalization strategy, the company assigns employees to overseas branches/subsidiaries and handles visa and tax matters in accordance with local policies, while assisting in the compliance management of employees throughout their international assignment life cycle.
GONEX One-Stop Solution: Your strategic partner
Compliance and Legal Adherence: GONEX’s Employer of Record (EOR) service ensures legal compliance in employing local staff.
Cross-Border Payroll and Tax Management: Streamlined payroll services simplify cross-border management.
Flexible Employment Solutions: Adaptable employment services cater to changing business needs.
International Talent Dispatch: Support services facilitate the dispatch of key talent to overseas.
Digital HR Management Platform: Technology-driven solutions enhance management efficiency and cultural integration.
Who do we serve?
Gonex served 70+ clients to expand overseas. The incomes of our clients like Mengniu, Kuaishou and CHINT are up to 192.4 billion.
Let Gonex assist you and your company with handling such complex overseas hiring processes! To access more information on corporate international expansion cases, global employment guidelines, worldwide compensation management, regulations for various regional countries, and factory establishment manuals in different nations, you are welcome to visit the GONEX official website at www.letsgonex.com to download these resources or view our company’s business introduction in PDF format (https://letsgonex.com/in.pdf).
