Canada: More transparency on forced labour in supply chains
In Canada, organizations covered by the new law on forced labour and child labour in supply chains are required to report by the end of May.
Adopted just a year ago, on May 11, 2023, theCanadian Forced Labour and Child Labour in Supply Chains Actentered into force 1andJanuary 2024. The Act requires certain organizations to submit an annual report demonstrating efforts to prevent the use of forced labour and child labour in their activities and throughout their supply chains, in Canada and around the world. The first report, which must contain information on seven mandatory elements, must be submitted to the Department of Public Safety by May 31, 2024.
In addition to federal institutions, entities (any corporation, partnership, trust or other unincorporated organization) are subject to this modern slavery reporting obligation:
- producing, selling or distributing property in Canada,
- important in Canada goods manufactured in third countries,
- controlling an organisation engaged in one of the activities mentioned in the two preceding points.
These entities must either be listed on a Canadian stock exchange or meet at least two of the following three criteria:
- Own assets worth at least $20 million,
- Have generated revenues of at least $40 million,
- Employ at least 250 employees.
If Canadian SMEs are not required to submit the report, they may be required to provide information as a supplier to a subject entity.
It should be noted that if the Canada Customs Tariff already prohibits the importation of goods produced with the use of forced labour, this Act adds to this prohibition child labour. Companies importing goods or components into Canada must therefore be aware of the possible risk of seizure at the border, hence the importance oftraceability of the supply chain.
To go further...
ACTE International, Global Supply Chain Management Specialist and International Auditing and CSR Consulting Firm complete your risk mapping and assist you in the deployment of your ethical vigilance and policy plan in Asia, Africa, Europe and the Americas.
Source(s): Government of Canada
Editor(s): C. Bedouin