Updated version – as of July 2026
Important note on the current legal situation (as of July 2026)
The legal situation surrounding the Supply Chain Act has developed further in several respects since 2025. This contribution has been updated accordingly. The most important innovations at a glance:
- The complaints procedure remains mandatory without restriction: Unlike the reporting obligation suspended by BAFA since 1 October 2025, the substantive due diligence obligations – risk analysis, preventive measures and, in particular, the complaints procedure – remain unchanged and in force.
- Relationship with the Whistleblower Protection Act clarified: According to the updated BAFA FAQ, companies may use a single complaints channel for reports under the LkSG and the Whistleblower Protection Act, provided that it meets the requirements of both laws.
- EU Supply Chain Directive to harmonise complaints procedures across the EU in future: Following the Omnibus I package, Article 14 of the CSDDD will be fully harmonised from 26 July 2029. More details can be found at the end of this article.
The Supply Chain Due Diligence Act (LkSG) came into effect on 1 January 2023. Long called for by interest groups, it is intended to make companies responsible for their entire supply chains. Neglect of due diligence regarding human rights and the environment should thus be recognised in good time and avoided in the future.
In Germany, the LkSG has applied to companies with 3,000 or more employees, and since 2024, it has also been mandatory for companies with 1,000 or more employees. These thresholds apply – as of July 2026 – formally unchanged. However, it doesn't just affect companies that fall directly within the scope of the LkSG, but also, for example, smaller suppliers. This means that medium-sized companies also need to take action.
In practice, the complaints procedure is, alongside the risk analysis, the most important measure for implementation.
But what does this look like in practice? What are the LkSG's requirements regarding a complaints procedure, and how can you ensure compliance?
3 steps to introduce a legally compliant complaint procedure
Step 1: Definition: Target audience for a complaint procedure
Under the LkSG, unlike under the Whistleblower Protection Act and the EU Whistleblowing Directive, companies must give not only their own employees but also external parties the opportunity to submit reports. This includes all individuals working in the supply chain as well as people who have become aware of violations. Representatives of affected individuals may also submit reports. Importantly, the procedure should be designed with the respective target group in mind.
The distinction between the complaints procedure under the LkSG, which is generally open to “everyone”, and the internal reporting office under the Whistleblower Protection Act, which is restricted to employees, was recently confirmed by BAFA in its FAQ: A single complaints channel for both laws is permissible, provided that it meets the partly differing requirements of both laws regarding accessibility, procedural rules and deadlines.
Step 2: Implementation – Carefully putting the complaints procedure into practice
A meaningful complaints procedure should not be a „mandatory event“. It represents an early warning system and is intended to identify problems or risks in good time, ideally before people or the environment are harmed. Employees often learn about infringements first – if this happens promptly, remedial measures may not even be necessary. Financial and personnel resources must be planned accordingly for the establishment of a complaints procedure. The findings of the procedure should be incorporated into the review and improvement of the fundamental and human rights declaration.
The complaints procedure should be clearly communicated to the target audience (employees, external parties) and be easily accessible.
Step 3: Reporting system – it must be simple
The be-all and end-all of the reporting system is its intuitive usability. It should be easy to understand and accessible 24/7, multilingual, and usable from any device. Reports should be possible both in writing and verbally.
Practical advice on specific implementation – such as concerning confidentiality, acknowledgement of receipt, and documentation – has been summarised by the BAFA in its manual on the complaints procedure.
Outlook: The EU Supply Chain Due Diligence Directive (CSDDD) and the complaint procedure
At EU level, a complaints procedure is also a central component of the due diligence obligations: The EU Supply Chain Directive (Corporate Sustainability Due Diligence Directive, CSDDD) requires a procedure under Article 14 that is accessible to people throughout the entire value chain and transparently regulates the handling of complaints.
The Omnibus I simplification package fully harmonised this requirement, along with the provisions concerning risk analysis, preventive and remedial measures, monitoring and reporting.
This means that once the requirements apply uniformly from 26 July 2029 (for companies with more than 5,000 employees and more than EUR 1.5 billion in global net turnover), Member States - and therefore German lawmakers too - will no longer be permitted to tighten or loosen the requirements for complaint procedures. The German Supply Chain Due Diligence Act (LkSG) will therefore have to be adapted 1:1 to the CSDDD in this area in the medium term.Until then, the LkSG will continue to apply unchanged as the national legal basis; companies that establish a legally compliant complaints procedure now will also create a solid foundation for the future CSDDD requirements.
LegalTegrity already fully meets the requirements for an LkSG-compliant reporting system and supports you throughout its implementation.
Further information on the Supply Chain Act can be found in our detailed contribution to the German Supply Chain Due Diligence Act.
Legal Notice
This post reflects the legal situation as of July 2026 and is for general information only; it does not constitute legal advice. The legislative process for the LkSG amendment and the national transposition of the CSDDD are not yet concluded – details on the entry into force should be re-checked via bafa.de and Bundestag printing documents before any publication.
