New BAFA Guidance on Child Rights for German Companies

With increasing scrutiny on how businesses uphold human rights in their supply chains, Germany’s Supply Chain Due Diligence Act (LkSG) has set a new benchmark, especially in how it addresses the rights of children.

Last month, BAFA, the enforcement authority for the LkSG, released its latest guidance document focusing on the protection of children’s rights. Recognising children as a particularly vulnerable group, the new publication outlines practical steps companies can take to meet their due diligence obligations, including the use of third-party expertise.

This in-depth guidance explains how German companies can fulfil their due diligence obligations under the LkSG with respect to children's rights.

Key components include:

• Definitions & Scope: Clarifies who is a child (under 18), what qualifies as young workers, and which rights are protected under the law.

• Legal Foundations: Based on ILO Conventions 138 (minimum age) and 182 (worst forms of child labour), with detailed explanations of hazardous and permissible work for children.

• Direct & Indirect Violations: Identifies violations that affect children directly (e.g. child labour, dangerous work) and indirectly (e.g. low wages or unsafe working conditions for parents).

Key Due Diligence Actions:

• Risk analysis: How to identify, assess, and prioritise child rights risks in the supply chain.

• Prevention: Practical measures to prevent violations, including improvements in working conditions and wages.

• Remediation: Guidelines for child-sensitive, rights-based approaches when violations are found.

• Grievance mechanisms: Child-friendly complaint systems and how to assess their effectiveness.

• Documentation & reporting: What companies need to track and disclose.

• Root causes of child labour: Explains systemic drivers (e.g. poverty, weak enforcement, lack of education) and how business practices can exacerbate them.[AR1] [MOU2] 

• Tools & sources: Offers practical tools, case studies, risk indicators, and a checklist for implementation.

Through a partnership with Save the Children Germany, The Centre was consulted on key positions and recommendations in addition to other stakeholders. While the document draws heavily from widely recognised sources such as the ILO and UNICEF, three of The Centre’s publications are also cited:

• 1000 Reports of Child Labour: Lessons, Insights, Reflections from The Centre's Child Labour Remediation Work

• The Suitability of Operational-Level Grievance Mechanisms in Addressing Child Labour (joint publication with the Remedy Project)

• Child Rights Risks in Global Supply Chains: Why a ‘Zero Tolerance’ Approach is Not Enough (joint publication with Save the Children Germany)

Other highlights in the guidance include:

• Strong reference to the ILO minimum age standards

• Emphasis on non-discrimination against young workers, and caution against pushing them out of the labour force without alternatives

• Recognition of how parents’ working conditions directly affect children’s rights

• Ensuring the best interest of the child when carrying out remediation

We’re proud that The Centre and Save the Children Germany’s expertise in child rights have contributed to a guidance document that will directly influence how German companies tackle child labour risks.

“The strong focus on a child-centred and child-rights based approach along all due diligence steps really stands out and helps protect children as one of the most vulnerable stakeholders in our supply chains”, says Ines Kaempfer, CEO of The Centre for Child Rights and Business. 

Anne Reiner, Lead Sustainable Supply Chains at Save the Children Germany agrees: “And what adds to making this guidance a strong resource for companies is that its recommendations and good practice examples are first and foremost one thing: they are actionable!”.

For businesses subject to the LkSG, this is more than a compliance issue; it’s an opportunity to strengthen long-term resilience, mitigate reputational risk, and improve outcomes for children and families across global supply chains.

Both The Centre and Save the Children will continue to support companies to meet legal requirements while creating lasting positive impact.

Interested in aligning your child labour due diligence with the latest guidance? Get in touch to explore how we can support your efforts.

Download the Guidance