Fighting Against Forced Labour and Child Labour in Supply Chains Act, 2024
In Effect: Fighting Against Forced Labour and Child Labour in Supply Chains Act, 2024
Forced and child labour can be found in almost every country and every sector and occur primarily through the global supply chains of businesses. 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.
The Government of Canada has determined that entities and government institutions doing business in Canada have a responsibility to ensure that exploitative practices are addressed and eradicated from their supply chains. There is a risk that goods imported into and distributed in Canada were produced with forced labour or child labour – even unknowingly.
The Fighting Against Forced Labour and Child Labour in Supply Chains Act has come into force on January 1, 2024, in Canada. Information on this Act can be found on the Justice Laws Website.
On the Public Safety Canada website, you will find information about the reporting requirements and the submission process including the questionnaire that reporting entities and government institutions will be required to complete. Guidance, tools and resources are available on:
- Preparing a report
- Applying for the Act
- The required contents of the report
What Goods Are Covered?
The Fighting Against Forced Labour and Child Labour in Supply Chains Act covers most international trade products and transactions as defined in the regulation, which is essentially any good which you would buy and sell in an international transaction.
Who Needs to Report?
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 (2) of the following three criteria for at least one (1) 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
The reporting obligations apply to any government institution producing, purchasing or distributing goods in Canada or elsewhere.
The deadline for submitting a report is May 31, 2024. Inquiries about this Act may be sent to SupplyChainsActInquiries-LoiChainesApprovisionnementEnquetes@ps-sp.gc.ca.
For additional information and assistance, please contact your local Delmar Representative.