Forced Labour in Canadian Supply Chains
On this page
- About Bill S-211
- Annual Report Requirements
- Approval
- Attestation
- Timeline for Implementation
- Contact Us
- Resources for More Information
About Bill S-211
The measures introduced through 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) aim to increase industry awareness and transparency and drive businesses to improve practices.
Bill S-211 received Royal Assent on May 11, 2023. It is expected to come into force on January 1, 2024, and contains two parts.
Reporting Obligation
The first part of the Act imposes an obligation on certain entities and government institutions to submit an annual report to the Minister of Public Safety by May 31 of each year on 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.
Reports will be made available to the public in two ways:
- In an electronic registry on Public Safety Canada's website.
- In a prominent location on the reporting entity or government institution's website.
A summary of the information received will be tabled in an annual report to Parliament by the Minister of Public Safety.
Change to the Customs Tariff
The second part amends the Customs Tariff to expand the prohibition on the importation of goods mined, manufactured or produced, in whole or in part by forced labour, to also include child labour.
Annual Report Requirements
Entities
The Act applies to 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 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
- 250 or more employees
Report details
Once the Act comes into force, entities must, on or before May 31 of each year, submit a report to the Minister of Public Safety on:
- The steps the entity has taken during its previous financial year to prevent and reduce the risk that forced labour or child labour is used at any step of the production of goods in Canada or elsewhere by the entity or of goods imported into Canada by the entity.
- Its structure, activities and supply chains.
- Its policies and due diligence processes in relation to forced labour and child labour.
- The parts of its business and supply chains that carry a risk of forced labour or child labour being used and the steps it has taken to assess and manage that risk.
- Any measures taken to remediate any forced labour or child labour.
- Any measures taken to remediate the loss of income to the most vulnerable families that results from any measure taken to eliminate the use of forced labour or child labour in its activities and supply chains.
- The training provided to employees on forced labour and child labour.
- How the entity assesses its effectiveness in ensuring that forced labour and child labour are not being used in its business and supply chains.
In addition to submitting the report to the Minister, the entity must make the report available to the public, including by publishing it in a prominent place on its website.
In the case of entities incorporated under the Canada Business Corporations Act or under any other Act of Parliament, the report must also be distributed to each shareholder, along with its annual financial statements.
Government Institutions
The legislation applies to any government institution producing, purchasing or distributing goods in Canada or elsewhere.
A “government institution” is defined in accordance with section 3 of the Access to Information Act.
Report details
The head of every government institutions must, on or before May 31 of each year, report to the Minister of Public Safety on:
- The steps the government institution has taken during its previous financial year to prevent and reduce the risk that forced labour or child labour is used at any step of the production of goods produced, purchased or distributed by the government institution.
- Its structure, activities and supply chains.
- Its policies and due diligence processes in relation to forced labour and child labour.
- The parts of its activities and supply chains that carry a risk of forced labour or child labour being used and the steps it has taken to assess and manage that risk.
- Any measures taken to remediate any forced labour or child labour.
- Any measures taken to remediate the loss of income to the most vulnerable families that results from any measure taken to eliminate the use of forced labour or child labour in its activities and supply chains.
- The training provided to employees on forced labour and child labour.
- How the government institution assesses its effectiveness in ensuring that forced labour and child labour are not being used in its activities and supply chains.
On submitting the report to the Minister, the government institution must make the report available to the public, including by publishing it in a prominent place on its website.
Approval
Entities
In the case of a report submitted for a single entity, the report must be approved by its governing body.
In the case of a joint report, the report must be approved by either the governing body of each entity included in the report, or by the governing body of the entity, if any, that controls each entity included in the report.
Government Institutions
Reports from government institutions must be approved by the head of the institution.
Attestation
Entities
The approved report must receive attestation through the following means.
- A statement that sets out whether it was approved pursuant to the criteria for a single entity or as party to a joint report.
- The signature of one or more members of the governing body of each entity that approved the report.
Government institutions
Attestation does not apply to government institutions.
Timeline for Implementation
The legislation is expected to come into force on January 1, 2024. As such, the first report would be due on May 31, 2024.
All reports must reference the activities undertaken during the previous financial year. For example, if an entity's financial year follows the calendar year, then a report due on May 31, 2024, would cover the activities from January 1, 2023 and December 31, 2023.
More information about the intake process will be provided in the coming months, including: report format, templates, and methods of submission. Additional information will be posted on this website so we encourage you to return regularly for updates.
Contact Us
For stakeholder inquiries related to the reporting obligation and requirements, contact us at: SupplyChainsActInquiries-LoiChainesApprovisionnementEnquetes@ps-sp.gc.ca.
Resources for More Information
Public Safety Canada is the federal lead for implementing the reporting obligation put in place through the Act. For information and questions on other actions Canada is taking to address forced labour in global supply chains, refer to the resources below.
Forced Labour in Canadian Supply Chains
The Minister of Labour—in collaboration with the Minister of Public Safety, the Minister of Public Services and Procurement and the Minister of International Trade, Export Promotion, Small Business and Economic Development—is mandated to introduce legislation to eradicate forced labour from Canadian supply chains and ensure that Canadian businesses operating abroad do not contribute to human rights abuses. Budget 2023 reiterated the Government's commitment and announced plans to introduce legislation in 2024.
Trade Agreements
Canada negotiates comprehensive and enforceable labour provisions in its free trade agreements that commit trade partners to uphold international labour standards, including the elimination of forced labour and child labour, and to effectively enforce their labour laws.
Responsible Business Conduct
The Responsible Business Conduct Strategy helps to ensure that Canadian companies active abroad abide by all relevant laws, respect human rights in their operations, including their supply chains, and adopt best practices and internationally respected guidelines.
Federal Procurement Code of Conduct
The Code of Conduct outlines expectations for Government of Canada suppliers regarding human and labour rights.
National Strategy to Combat Human Trafficking
The National Strategy brings together federal efforts to address human trafficking at home and abroad under one strategic plan. It is designed to strengthen Canada's response to human trafficking for both sexual exploitation and forced labour.
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