Definition and classification
The German Supply Chain Due Diligence Act (LkSG) obliges companies above a certain size to observe human rights and environmental duties of care in their supply chain – from risk analysis through prevention and remedial measures to reporting.
The duties apply in stages according to headcount; companies with 1,000 or more employees are covered, among others. Importantly: the supply chain includes not only the sourcing of goods but also the people deployed.
What does the LkSG mean for staff leasing?
Staffing provider and Subcontractor are part of the supply chain. Client companies should check their standards – for example minimum wage, social security and occupational safety. An automated check of the records delivers exactly the evidence the LkSG requires, and reduces both effort and liability risk.