__lksg/sca: what companies are obligated?
Companies with 3,000 or more employees must evaluate compliance with environmental and human rights in their supply chains (Section 1 LkSG). From the coming year, 2024, the threshold will drop to 1,000 employees. European legislation (Corporate Sustainability Due Diligence Directive - CSDDD) is also being planned, which is expected to lower the threshold further.
"Company" is a generic term encompassing different legal forms, including foreign legal documents. The company must have its head office, principal place of business, administrative headquarters or statutory seat in Germany.
Foreign companies may also be covered if they have a branch office in Germany that exceeds the employee threshold of 3,0000 (from 2024 to 1,000). In this case, the foreign company itself is subject to the obligation and not the branch office.
The number of employees is determined by the average value over a more extended period, both from a retrospective and a forecast. Short-term fluctuations in the number of employees should be OK with the scope of the law.
Counting is based on the per capita principle. No distinction is made between part-time and full-time employees. Also included are employees absent on maternity leave, on probation or short-time work, and employees posted abroad. (Civil servants, soldiers, interns, trainees and apprentices are omitted). Temporary workers are also counted if their period of employment exceeds six months.