Fighting Against Forced Labour and Child Labour in Supply Chains Act

The purpose of the act is to implement Canada’s international commitment to contribute to the fight against forced labour and child labour through new reporting obligations on certain entities and government organization. Organizations that are subject to the act will have to report on the measures taken to prevent and reduce the risk that forced labour or child labour is used, including in their supply chains. The act also provides for an inspection regime and gives the Minister of Public Safety and Emergency Preparedness the power to require an entity to provide certain information. The act comes into force January 1, 2024, and entities that are subject to it will have to file their first annual report on or before May 31, 2024. Given that the act will result in new reporting obligations for certain entities, as well as expose them to a variety of examination activities, it is important for companies, their boards and advisors to understand the new obligations and the consequences for failure to comply.