In Canada, Bill S-211, the Fighting Against Forced Labour and Child Labour in Supply Chains Act (the Act) is at third reading in the House of Commons, having already completed third reading in the Senate. If the Act receives royal assent in 2023, it will come into force on 1 January 2024.
Under the Act, Canada will join jurisdictions including the United Kingdom, France, Germany, the Netherlands, the European Union, Australia and California who have also introduced legislation in an effort to address modern slavery in global supply chains.
By way of comparison, national legislative measures to fight modern slavery in global supply chains have generally taken one of two approaches. Some states have enacted legislation that aims to increase organisational transparency by imposing reporting obligations to promote responsible business practices and others have imposed more onerous due diligence obligations on organisations with global supply chains.
Under the Act, Canada, like the United Kingdom, Australia and California, would be opting for a transparency-driven approach. If enacted, the Act will impose annual reporting obligations on government institutions and on certain private corporations, trusts, partnerships and unincorporated organisations concerning the measures taken to mitigate the risk of forced labour and child labour in their supply chains. Bill S-211 specifically focuses on forced labour and child labour and does not explicitly include human trafficking and other forms of exploitation captured in alternative definitions of modern slavery.
Under Bill S-211, certain federal government institutions and a wide array of private sector “entities” engaged in certain activities (including companies listed on a Canadian stock exchange) are required to report on any risks that forced labour and/or child labour may be present in their supply chains and disclose the policies, procedures, structures and plans they have implemented to mitigate those risks.
Bill S-211 also legislates that any goods that are mined, manufactured or produced wholly or in part by forced labour or child labour shall be prohibited under Canada’s Customs Tariff.
While the first reports under Bill S-211 may be due as early as May 2024, organisations can take a number of steps to prepare themselves in advance for the reporting obligations set out under Bill S-211.