Parliament Passes Bill S-211: The New Forced Labour and Supply Chain Reporting Law
May 30, 2023
On May 3, 2023, the Canadian Parliament passed Bill S-211, An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff (Act). The Act is expected to receive royal assent shortly and will take effect on January 1, 2024, imposing significant reporting obligations on Canadian businesses and importers.
Reporting obligations will apply to any private-sector entity (defined below) that is: (i) producing, selling or distributing goods in Canada or elsewhere; (ii) importing into Canada goods produced outside Canada, or (iii) controlling an entity engaged in either of the above activities.
An "entity" is defined as a corporation or a trust, partnership or other unincorporated organization that: (i) Is listed on a stock exchange in Canada; (ii) has a place of business in Canada, does business in Canada or has assets in Canada and, based on its consolidated financial statements, has met at least two of the following three conditions in at least one of its last two financial years: (a) had at least C$20-million in assets; (b) generated at least C$40-million in revenue; (c) employed an average of at least 250 employees, or (iv) Is prescribed by regulations (although no such regulations have yet been promulgated)
Reporting obligations will also apply to all federal government institutions, ministries and departments, including Crown corporations and wholly owned subsidiaries, that are producing, purchasing or distributing goods in Canada or elsewhere.
The first report will be required to be filed on or before May 31, 2024.
Review the article on Blake, Cassels & Graydon LLP's website and the Act on the Parliament of Canada website.