The Supply Chains Act, created to increase industry awareness and drive business to improve their practices around forced labour in Canadian supply chains, comes into force on Jan. 1, 2024, with the first report due on May 31, 2024.

Background

The International Labour Organization estimates that there are approximately 27.6 million victims of forced labour worldwide, including 17.3 million in the private economy. There is a risk that goods imported into and distributed in Canada were produced with forced labour or child labour. Entities and government institutions doing business in Canada have a responsibility to ensure that exploitative practices are addressed and eradicated from their supply chains.

Reporting Requirements

Certain entities and government institutions must submit an annual report to the Minister of Public Safety by May 31 of each year.

Entities include any corporation, trust, partnership or other unincorporated organization whose activities include producing, selling or distributing goods in Canada or elsewhere, importing goods into Canada, or controlling an entity engaged in any of these activities.

Additionally, the entity must either be listed on a stock exchange in Canada or have a place of business in Canada, do business in Canada or have assets in Canada and meet 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

Reports must detail the steps taken during the previous financial year to prevent and reduce the risk that forced labour or child labour is used by them or in their supply chains.

All reports will be made available to the public in two ways:

  • In a prominent location on the reporting entity or government institution’s website
  • In an electronic registry on Public Safety Canada’s website

Information session

Public Safety Canada will hold an information session on the reporting process for the Supply Chains Act on Jan. 11, 2024. You can register using the link below:

Supply Chains Act Information Session

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