Bill S-211, the Fighting Against Forced Labour and Child Labour in Supply Chains Act, represents a significant step towards combating human rights abuses within supply chains. Businesses that meet certain thresholds will be required to file detailed public reports on measures they have taken to identify, address and prevent forced labour, prison labour and child labour in their supply chains.
Reporting Obligations
Reporting obligations will apply to any private-sector entity (defined below) that is:
Producing, selling or distributing goods in Canada or elsewhere
Importing into Canada goods produced outside Canada, or
Controlling an entity engaged in either of the above activities
“entity” means a corporation or a trust, partnership or other unincorporated organization that:
(a) is listed on a stock exchange in Canada;
(b) has a place of business in Canada, does business in Canada or has assets in Canada and that, based on its consolidated financial statements, meets at least two of the following conditions for at least one of its two most recent financial years:
(i) it has at least $20 million in assets,
(ii) it has generated at least $40 million in revenue, and
(iii) it employs an average of at least 250 employees; or
(c) is prescribed by regulations.
The report must also include the following information in respect of each entity subject to the report:
Its structure, activities, and supply chains
Its policies and its 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
The annual reports must be approved by the organization’s governing body (e.g., board of directors) and then submitted to the Minister of Public Safety and Emergency Preparedness (the Minister) by May 31 of each year, with the first annual report due May 31, 2024.
Failure to comply with legislation may result such person or entity being guilty of an offence punishable on summary conviction and fines of up to $250,000. This penalty applies to individuals or entities that fail to comply or knowingly provide false information. Furthermore, Directors, Officers, Agents, or representatives involved in offenses may also face punishment, regardless of whether the entity itself is prosecuted.
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