Ministers for the European Union's member states on Friday gave their final approval to a much fought-over law requiring companies to protect human rights in their supply chains.
The Directive on Corporate Sustainability Due Diligence - also known as the European Supply Chain Act - is intended to hold large companies accountable if they profit from child or forced labour outside the EU.
EU, non-EU and parent companies with turnover of more than €450 million ($487 million) and at least 1,000 employees are subject to the regulation and will be liable for damages as well fines for non-compliance.
For example, if large fashion companies have their clothes sewn by children in Asia, the victims of such exploitation will in future be able to claim compensation under the new legislation.
No member states voted against the law, but 10 abstained, including Germany. Getting the law over the line took considerable diplomatic effort. It was particularly controversial within Germany's coalition government, where the liberal Free Democratic Party feared overburdening businesses.
An initial deal with the European Parliament, brokered last year by Spain, failed to get enough support from member states. The new deal approved on Friday was negotiated by Belgium. It raises the threshold at which companies will fall under the new rules.
Nevertheless, the law only just secured enough support among member states to pass.
Germany, Belgium, Bulgaria, the Czech Republic, Estonia, Lithuania, Hungary, Malta, Austria and Slovakia all abstained.
The other 17 member states - representing 68.41% of the EU's population - voted in favour. Most types of EU law need the support of at least 15 member states representing 65% of the population to pass.
The law will come into effect gradually over a five-year period, affecting larger companies earlier, starting with those that have more than 5,000 employees and €1.5 billion in annual revenue.
The European Parliament approved the legislation on April 24.