Overview
This article summarises the current status of the LkSG reporting obligation towards BAFA and shows which obligations continue to apply.
Relevant for companies within the scope of the LkSG.
Check in the article Directly and indirectly affected companies whether your company is directly affected.
Current status of the reporting obligation
Draft law: On 3 September 2025, the Federal Cabinet adopted a draft law amending the LkSG (Bundestag printed paper 21/2474, German). It provides for the reporting obligation to be abolished without replacement and retroactively.
Enforcement by BAFA: On the instruction of the Federal Government, BAFA has stopped reviewing reports under Sections 12 and 13 LkSG. Since 7 November 2025, BAFA no longer accepts reports.
Fines: BAFA only imposes fines for particularly serious violations, e.g. missing remedial measures. Nine of thirteen administrative offences are to be removed by the amendment.
Note: Until the amendment enters into force, the reporting obligation (Section 10 (2) LkSG) formally remains in the law. However, BAFA no longer enforces it. If in doubt, clarify with your legal department whether you want to publish a report voluntarily.
What continues to apply
Establish risk management and define who is responsible for monitoring it (Section 4 LkSG)
Carry out annual and event-driven risk analyses (Section 5 LkSG)
Issue a policy statement and establish preventive measures (Section 6 LkSG)
Take remedial action (Section 7 LkSG)
Set up a complaints procedure (Section 8 LkSG)
Document the fulfilment of due diligence obligations internally on an ongoing basis and keep the documentation for at least seven years (Section 10 (1) LkSG)
Good to know
Since 7 November 2025, BAFA no longer reviews LkSG reports. Reports can no longer be submitted via BAFA's access.
The due diligence obligations of the LkSG continue to apply unchanged.
Next steps
Continue to carry out the risk analysis in the Tacto App regularly and derive measures from it.
Document the risk analysis, measures and complaints internally and keep the documentation for seven years.
Follow the completion of the legislative procedure and the transposition of the EU Corporate Sustainability Due Diligence Directive (CSDDD).
Sources