The Hidden Risk in Your Supply Chain – And Why You Should Act Now.

If you’re a UK business trading with the EU, there’s a major change on the horizon that could seriously impact your supply chain—and your reputation. The EU’s Forced Labour Regulation (FLR) is now in force and will be fully enforceable from 14 December 2027. That might seem like a long way off, but getting ahead of this now is the smart move.

What’s Changing?

The FLR is a move by the EU to eliminate forced labour from every stage of a product’s life—from raw materials to final assembly. It affects all companies doing a minimum level of business in the EU, no matter their size. And that includes UK-based firms.

If you operate at some stage of the supply chain of products that end up in the EU, you could be on the hook. Products linked to forced labour will be seized at EU borders.

Even if you don’t export directly, your EU clients will be tightening their own supply chain checks, and you’ll need to meet their new standards to stay in the game.

What Should You Be Doing?

Start with these practical steps:

• Review your supply chain—use effective risk assessments to identify risks related to forced labour.
• Use customer leverage—you’re not the only customer this will affect, start the conversation to drive change.
• Examine your supplier contracts—support your conversation using compliance obligations and termination rights.
• Upgrade your records—document your steps, targeted action, outcomes and related decision making.
• Complete the process—ensure you can evidence you have taken necessary actions.

This isn’t just about ticking boxes. It’s about authentically addressing the issues and then being ready to show regulators and customers that you take this seriously.

What About the UK?

There’s growing pressure here too. The UK Parliament launched an inquiry in January to explore whether our current laws—including the Modern Slavery Act (MSA)—go far enough. The MSA requires some businesses to publish annual statements about what they’re doing to prevent modern slavery in their operations and supply chains. However, there is no requirement for internal or external assurance.

And the direction of travel? Tougher enforcement and higher expectations. If you’re prepping for the EU rules, it’s a good idea to mirror those efforts in your MSA statement—that way you’re covered on both fronts.

BRAVE thoughts.

This isn’t just a compliance issue—it’s a strategic one.

Investors, customers, and regulators are all demanding greater transparency. Companies that take a holistic, proactive approach to supply chain due diligence and risk management will be better positioned to build trust, reduce legal risks, and maintain strong business relationships.

If you haven’t started yet, now’s the time.