The supply chain law can be passed.

The Union and the SPD agreed on the last disputed points on Thursday.

Last week, the draft law was removed from the Bundestag's agenda shortly before the final deliberation.

Manfred Schäfers

Business correspondent in Berlin.

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    In the Union parliamentary group there had been concerns about an expansion of civil liability. This must be ruled out, it said in their circles - although Development Minister Gerd Müller (CSU) had argued that the law did not entail any new risks for companies. You don't go beyond what has long been regulated in the German Civil Code (BGB). However, this was not enough for the doubters in his own group.

    Following the amendment submitted to the FAZ, a classic compromise has now been found.

    "A breach of the obligations under this law does not justify civil liability", it says first, to then add the sentence: "A civil liability established independently of this law remains unaffected." The clarification is intended to establish and prevent the status quo, as it were. that the existing legal situation will be reinterpreted using the new supply chain law.

    "A big stone falls from my heart"

    In the justification one finds the following explanation: The government draft was decided with the aim and the idea of ​​not creating any additional civil liability risks for companies. "The new due diligence obligations established for the purpose of improving the human rights situation in international supply chains should rather be enforced and sanctioned in the administrative procedure and by means of the administrative offense law." This should be clarified in particular with regard to Section 823 Paragraph 2 BGB. Insofar as civil liability is justified under the current legal situation, "this should, however, continue to exist unchanged and its enforcement should be facilitated in particularly serious cases".

    After the agreement, those involved were satisfied.

    "A big stone falls from my heart, this law will give millions of children and families in developing countries a bit better life chances and future prospects," said Development Minister Müller.

    The EU should make the German regulation the basis of a proposal for compliance with human rights in all European supply chains.

    Labor Minister Hubertus Heil (SPD) emphasized: "I am glad that I was able to push through this important project after tough negotiations against massive lobbying resistance." One must not allow the companies that have so far voluntarily campaigned for the protection of human rights in the Disadvantage compared to the "black sheep".

    The law will make a contribution to a fair globalization.

    "The strongest supply chain law in Europe"

    With the new regulation, companies are to be fundamentally responsible for human rights in their entire supply chain.

    There are only specific obligations towards direct suppliers.

    If management gains substantial knowledge of human rights violations at an indirect supplier, it must also take action.

    For companies with a turnover of more than 400 million euros, fines of up to 2 percent of global turnover are envisaged.

    As a further sanction, the intention is to be excluded from public contracts for three years.

    In addition, a new "litigation stand" is planned.

    It is intended to allow trade unions and non-governmental organizations to represent the interests of employees of foreign companies vis-à-vis German clients.

    The central provisions are expected to come into force in early 2023, initially for companies with more than 3,000 employees. A year later, the limit drops to 1,000 employees. It is now made clear that the number of employees is generally calculated based on the number of employees in Germany. At the same time, the scope of the “Supply Chain Due Diligence Act” is extended to foreign companies if they have a branch in Germany and employ a correspondingly large number of employees.

    The changes made it clear that nothing impossible should be expected of the companies, said Union parliamentary group vice-president Hermann Gröhe. His colleague from the SPD, Katja Mast, ruled: “Germany will get the strongest supply chain law in Europe.” The Bundestag should now pass it before the summer break.