Canada's Modern Slavery Act Mandates New Disclosure Requirements In Corporate Supply Chains: What You Need To Know Today
On May 3, 2023, the Canadian Parliament passed Bill S-211, the Fighting Against Forced Labour and Child Labour in Supply Chains Act (also known as the Modern Slavery Act), which will take effect January 1, 2024.
The key provisions of the new law require Canadian entities to produce an annual public report on their efforts to identify and prevent forced labour and child labour across their supply chains. It also amends the customs tariff to prohibit the importation of goods associated with these two human rights violations.
The act creates personal liability for corporate directors and officers of companies listed on a Canadian stock exchange, or which produce, purchase, or distribute goods in Canada or elsewhere, and that meet at least two of the following criteria:
a) have a minimum of $20 million in assets
b) have a minimum of $40 million in annual sales, or
c) have at least 250 employees.
The first deadline for reporting entities to submit their annual Supply Chain Risk Report is May 31, 2024.
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