On May 8, 2023, Fighting Against Forced Labour and Child Labour in Supply Chains Act (the “Act”), Canada’s modern slavery legislation, passed in the House of Commons. The Act will become law once it receives royal assent and will be implemented on January 1, 2024.
The Act requires certain entities and many government institutions to file annual reports—the first being due in May 2024—that lay out the steps they took during the previous financial year to prevent and reduce the risk that forced, or child labor was used at any step in the production process. This Act applies to the goods produced in Canada or goods imported into Canada by the entity or government institution.
The annual report must also include:
- Business structure, activities, and supply chains;
- Policies on the processes concerning forced and child labor;
- Actions to rectify any forced or child labor; and
- Compliance processes (including risk assessments, audit processes, and employee training).
The business’s board or governing body must grant approval to the annual report, which should be accessible to the public. This accessibility can be achieved by publishing the report on the business’s website. In the case of federally incorporated corporations, the report should also be distributed to shareholders.
If you have any questions, please contact your local Noatum Logistics representative.