More Control on Child Labor at European Companies

EU Tightens Regulations for Large Companies

The European Union will tighten controls on child labor and damage to the environment. Large European companies in particular must act more quickly if something is wrong in their supply chains.

The new regulations apply to large companies with more than five hundred employees and a turnover of at least 150 million euros. These are approximately thirteen thousand companies in Europe, such as the airline KLM and LVMH, known for the fashion brand Louis Vuitton.

The rules also apply to around four thousand companies that operate in the EU but have their headquarters outside Europe.

Criticism and Compliance Challenges

The rules have received a lot of criticism within Europe. Critics believe that companies are being saddled with more and more regulations. From 2024 onwards, they must also meet previously agreed requirements in the field of environment and employment conditions.

Impact on Business Practices

This move is expected to significantly impact the way large companies conduct their business, placing greater emphasis on supply chain transparency and accountability. It also highlights the growing importance of ethical and sustainable practices within the corporate world.