German Act on Corporate Due Diligence Obligations for the Prevention of Human Rights Violations in Supply Chains
(Supply Chain Due Diligence Act - LkSG | Lieferkettensorgfaltspflichtengesetz – LkSG)
of July 16, 2021 | also referred to as the Supply Chain Act or Due Diligence Act.
Published in the Federal Law Gazette Federal Law Gazette Year 2021 Part I No. 46, issued at Bonn on July 22, 2021.
German Supply Chain Act - LkSG - §22 Exclusion from the award of public contracts
(1) Companies which have been fined in accordance with subsection (2) of Section 24(1) for a legally established infringement under Section 24(1) shall be excluded from participation in a procedure for the award of a supply, works or service contract by the contracting authorities referred to in Sections 99 and 100 of the Act against Restraints of Competition until they have proved that they have cleared themselves in accordance with Section 125 of the Act against Restraints of Competition. The exclusion pursuant to sentence 1 may only take place within a reasonable period of up to three years.
(2) An exclusion pursuant to subsection 1 shall require a legally established violation with a fine of at least one hundred seventy-five thousand euros. Notwithstanding sentence 1, 1. in the cases of Section 24 (2) sentence 2 in conjunction with Section 24 (2) sentence 1 no. 2, a legally established violation with a fine of at least
established violation with a fine of at least one million five hundred thousand euros,
2. in the cases of Section 24 (2) sentence 2 in conjunction with Section 24 (2) sentence 1 number 1, a legally established violation with a fine of at least two million euros, and
3. in the cases of Section 24 (3), a legally established violation with a fine of at least 0.35 percent of the average annual turnover.
annual turnover.
(3) The applicant shall be heard prior to the decision on exclusion.
LkSG