New Mandatory Reporting Requirement for Businesses: Canada’s Modern Anti-Slavery Bill Becomes Law
New Mandatory Reporting Requirement for Businesses: Canada’s Modern Anti-Slavery Bill Becomes Law
Bill S-211, Fighting Against Forced Labour and Child Labour in Supply Chains Act (the “Act”), Canada’s modern slavery legislation, passed in the House of Commons today. As a result, businesses and government bodies will be required to annually report on their efforts to prevent or mitigate the risk that forced labour or child labour exists in their supply chains.
The first such report will need to be filed with the government by May 31, 2024, and will need to be published prominently on the business’ website.
The Act aims to combat the prevalence of forced labor in global supply chains by requiring companies to disclose information on their efforts to address forced labour in their operations and supply chains. This includes information about the company’s policies and due diligence processes, as well as the actions taken to address identified risks.
Failure to comply with the reporting obligations under the new Act can result in fines and reputational damage and creates liability for directors and officers.
Reporting requirements are mandatory for companies listed on a Canadian stock exchange or have a nexus to Canada. Nexus to Canada is established by having assets, a place of business, or doing business in Canada, and meeting two of the three following thresholds: $20 million in assets, $40 million in revenue, or 250 employees. For more details, see our previous bulletin on Bill S-211.
The legislation also creates a prohibition on importing goods made of child labour, which will be enforced by Canada Border Services Agency, in line with the prior-enacted prohibition on goods made of forced labour.
We advise our clients to immediately take steps to prepare for compliance with the new forced labour reporting obligations. This may involve reviewing and updating your company’s policies and procedures to address forced labor risks in your supply chain. You may also wish to update your supplier due diligence and take action to remedy any identified risks.
If you have any questions or concerns about S-211, or would like guidance or support in preparing your company’s report, please do not hesitate to contact us. Our team remains available to support compliance with this important new legislation.
by William Pellerin, Stevie O’Brien, Hannibal El-Mohtar, Tayler Farrell
A Cautionary Note
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
© McMillan LLP 2023
Insights (5 Posts)View More
Update for Federal Employers: What’s in Store For 2024
Federal employers should be preparing for key dates upcoming in 2024, including updates to the Canada Labour Code and a key deadline under the Pay Equity Act.
Transformative Change: Your Guide to Canada’s Breathtaking Competition Act Changes
We provide a summary of far-reaching Competition Act amendments proposed in 2023.
Class Actions May Now Be Easier to Defeat in Ontario
It is now clear: the revised preferability analysis under the amended Class Proceedings Act is a strict, more onerous hurdle for plaintiffs to satisfy.
R. vs Greater Sudbury Webinar
Following a brief overview of the case and the SCC’s split decision, this discussion will focus on the implications of the decision to the roles and responsibilities of each project party, including the owner, contractor and design consultant (architect and engineer). The discussion will be interactive and will include an extensive Q&A period.
Client Alert – Certain Canadian Corporations May Be Subject to US Corporate Transparency Act Reporting Requirements
Certain Canadian Corporations Conducting Business in the United States May Be Subject to US Corporate Transparency Act Reporting Requirements
Get updates delivered right to your inbox. You can unsubscribe at any time.