Legislative Update - Fighting Against Forced Labour and Child Labour in Supply Chains Act

May 22, 2024

Fighting Against Forced Labour and Child Labour in Supply Chains Act (previously Bill S-211) has been enacted. The Act mandates new reporting measures that are intended to help eradicate forced labour and child labour from supply chains. Canadian and international businesses that meet the Act's requirements must file their first annual report on forced and child labour in supply chains by May 31, 2024.

Who is Required to Report:

Under the legislation, "Entities" include any corporation, trust, partnership or other unincorporated organization that is listed on a stock exchange in Canada, or has a place of business in Canada, does business in Canada or has assets in Canada and meets two of the following three criteria for at least one of its two most recent financial years:

• $20 million or more in assets
• $40 million or more in revenue
• An average of 250 or more employees

*Entities must determine if they are subject to reporting obligations in accordance with the Act.

Reporting process:

If a company determines they are required to submit a report under the criteria of the Act, the following steps must be taken:

• Prepare a Report (Public Safety Canada has released guidelines for this here.
• Approval and Attestation - the report must receive approval from the appropriate governing body or bodies who have the legal authority to bind the entity or entities
• Complete Online Questionnaire - The questionnaire includes a series of open and closed-ended questions that address each of the requirements under the Act. The Questionnaire questions can be viewed online here.
• Upload Completed Report
• Publish Report to the Entity's Website

Key Provisions of the Act:

• Mandatory Reporting: All entities that meet the reporting criteria must now conduct due diligence and submit annual reports detailing their efforts to identify and address forced labour and child labour within their supply chains.
• Transparency Requirements: Reports must be made publicly accessible, outlining policies, risk assessments, and steps taken to mitigate risks.
• Penalties for Non-Compliance: Non-compliance with the Act can result in substantial fines and legal consequences.

Resources:

In January, Public Safety Canada published a number of resources on their website concerning who needs to report, reporting requirements, and additional resources. That information can be found online here.

In addition, below are two bulletins that may be of assistance or provide additional clarity:

• Dan Leduc of Solloway Wright LLP published an article in the Ottawa Construction Association's May 2024 Construction Comment publication. Linked here.
• McMillan LLP published a bulletin earlier this year, outlining some of the key components of the Act. Linked here.

 

---

View More