Status: Adopted

Law - Canada - Fighting Against Forced Labour and Child Labour in Supply Chains Act

Fighting Against Forced Labour and Child Labour in Supply Chains Act

Reporting
- Each applicable entity is required to publish an annual report on steps it has taken to “prevent and reduce the risk that forced labour or child labour is used at any step of the production of goods in Canada or elsewhere by the entity or of goods imported into Canada by the entity.
- Government institutions that produce, purchase or distribute goods are required to issue similar reports regarding risks of forced and child labour in the production of these goods.
Due diligence
- Due diligence is not required in itself but companies and government institutions must report on their "due diligence processes" in relation to forced labour and child labour.

Human Rights
- The Act specifies that companies have to report on forced labour and child labour only.
- The Act ignores other human rights abuse.
Environment
Issue-specific
- Forced labour and child labour in the production of goods

Large companies
- The Act applies to any entity that sells, produces or distributes goods, or imports them into Canada, and that either:
  a) is listed on a stock exchange in Canada; or
  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 CAD 20 million in assets;
  ii. it has generated at least CAD 40 million in revenue; and
  iii. it employs an average of at least 250 employees.
- Any entity that is prescribed by regulations.
SMEs
- A small or medium-sized enterprise would be covered if it meets criteria as listed above.
Other
- Any department or ministry of state of the Government of Canada, any parent Crown corporation, and any wholly-owned subsidiary of such a corporation that produces, purchases or distributes goods.

Monitoring
- This Act does not include any regular, mandatory monitoring beyond annual self-reporting.
- The Canadian Minister of Public Safety and Emergency Preparedness may designate a person or persons to verify compliance and accuracy with reporting at any time.
Other
- The Act contains a provision to amend Canada's Customs Tariff, which already prohibits the importation of goods produced by forced labour, to also prohibit the importation of goods produced by child labour.

Administrative sanctions
- Every person or entity not in compliance or providing false or misleading information is guilty of an offence punishable on summary conviction and liable to a fine of not more than CAD $250,000.
Civil liability
Facilitating Access to Justice