Canada's Modern Slavery Legislation To Create Reporting Obligation

Bill S-211, An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff (the Act), is awaiting adoption of committee report and final reading in the House of Commons. Once passed, the Act will require many corporations with connections to Canada, and federal government institutions, to report on steps taken to prevent and reduce the risk that forced labour or child labour is being used in their supply chains. If the Act is passed in 2023, the first report will be due in May 2024. This will bring Canadian law generally into line with Australia, the U.K., and the United States.

What you need to know

• The Act is far-reaching and will apply to (1) any company listed on a Canadian stock exchange, and (2) any company doing business or holding assets in Canada that meets certain size thresholds—and produces, sells or distributes goods in Canada or elsewhere, or imports goods into Canada.