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1. Member States shall indicate in their CAP Strategic Plans that, at the latest as from 1 January 2025, farmers and other beneficiaries receiving direct payments under Chapter II or annual payments under Articles 70, 71 and 72 are to be subject to an administrative penalty if they do not comply with the requirements related to applicable working and employment conditions or employer obligations arising from the legal acts referred to in Annex IV.

2. When including a system of administrative penalties in their CAP Strategic Plans as referred in paragraph 1, Member States shall, in accordance with their institutional provisions, consult relevant national social partners representing management and labour in the agriculture sector and shall fully respect their autonomy, as well as their right to negotiate and conclude collective agreements. That system of administrative penalties shall not affect the rights and obligations of the social partners where they are, in accordance with national legal and collective bargaining frameworks, responsible for the implementation or enforcement of the legal acts referred to in Annex IV.

3. The CAP Strategic Plan shall include rules on an effective and proportionate system of administrative penalties. Those rules shall comply with the relevant requirements set out in Title IV, Chapter V, of Regulation (EU) 2021/2116.

4. The legal acts referred to in Annex IV containing the provisions to be covered by the system of administrative penalties referred to in paragraph 1 shall apply in the version that is applicable, and as implemented by the Member States.