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Bill S-211: What you need to know about Canada’s Anti-Forced Labour Legislation

Saturday April 27, 2024

Bill S-211 received royal assent on May 11, 2023 and came into effect on January 1, 2024. The Bill requires affected companies operating in Canada (including non-resident importers) to report on forced and child labour within their organization or supply chain. There are significant reporting obligations on affected businesses and the first report is due at the end of next month.

Bill S-211 reporting requirements
Organizations that meet certain thresholds are required to file an annual, detailed public report on the measures they have taken during the previous financial year to prevent and reduce the risk that forced labour or child labour was used at any step of the production of goods that they produced in Canada (or elsewhere) or that they imported into Canada.

The report must also include the following information on the organization:

  • Its structure, activities and supply chains
  • Any policies and due diligence processes in relation to forced labour and child labour
  • The parts of the business and supply chains that carry a risk of forced labour or child labour being used and the steps it has taken to assess and manage that risk
  • Any measures taken to remediate any forced labour or child labour
  • Any measures taken to remediate the loss of income to the most vulnerable families that results from any measure taken to eliminate the use of forced labour or child labour in its activities and supply chains
  • The training provided to employees on forced labour and child labour
  • How the business assesses its effectiveness in ensuring that forced labour and child labour are not being used in its business and supply chains

The report must be approved and attested to by the organization’s governing body (e.g. board of directors) and submitted to the Minister of Public Safety by May 31 of each year, with the first annual report due May 31, 2024.

There is also an online questionnaire addressing each requirement under the Act that must be completed before uploading and submitting the report online.

Note: It is important to ensure the information provided in the questionnaire is consistent with the information provided in the report.

Affected organizations that fail to submit a satisfactory report (or fail to make it public) may be fined up to $250,000 per director or officer.

What organizations are affected?
Bill S-211 reporting obligations apply to any corporation, trust, partnership or other unincorporated organization that:

  1. Produces, sells or distributes goods in Canada or elsewhere, OR
  2. Imports goods produced outside Canada into Canada, OR
  3. Controls an entity that is engaged in either of the above activities

AND that:

  1. Is listed on a stock exchange in Canada, OR
  2. Has a place of business in Canada, does business in Canada or has assets in Canada and that, 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:
    • had at least C$20 million in assets
    • generated at least C$40 million in revenue
    • employed an average of at least 250 employees, OR
  3. Is prescribed by regulations (as of yet, no regulations have been announced)

It is important to note that since reporting thresholds are based on consolidated financial statements, the reporting obligations extend to corporate groups that collectively meet the thresholds, even if individual corporations do not.

It is the responsibility of individual organizations to determine whether or not they are subject to reporting obligations in accordance with the Act.

Additional details are available on the Public Safety Canada website.

S+C Partners is committed to helping you.
Our dedicated team is here to assist you. Please call us at 905-821-9215 or email us at info@scpllp.com if you have any questions or require any assistance regarding Bill S-211.

 

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