As legal professionals, it is imperative to be aware of the rapidly evolving regulatory landscape, particularly as it pertains to ethical business practices. Of particular note is the adoption of new modern slavery legislation in Canada, dubbed the Fighting Against Forced Labour and Child Labour in Supply Chains Act (the Act).
The Act will significantly affect the modus operandi of Canadian public companies and private businesses that meet certain size thresholds. The primary requirement is that these entities are mandated to file public reports regarding the measures they have adopted to address and prevent instances of forced and child labour in their supply chains during their previous fiscal year. Given the looming deadline for the Act, which comes into force on January 1, 2024, it prompts a need for an accelerated shift towards more ethically-minded business operations.
The Act’s palpable emphasis is on supply chain transparency, which necessitates a comprehensive and critical review of a company’s operations, particularly regarding relationships with suppliers and industry partners. Notably, the first report required by the Act is due merely five months after it comes into effect, by May 31, 2024. This timeline demands a proactive approach from organizations to ensure thorough and timely compliance.
For legal professionals advising these companies, understanding the Act’s intricacies is critical. By equipping corporations with the necessary legal knowledge and strategic advice, they can drive an industry-wide shift in supply chain management — centred around transparency, accountability, and most importantly, the protection of human rights. Given the Act’s implications, readiness should not be considered an option, but rather a necessity in today’s corporate legal landscape.