As of January 2024, Canadian businesses will need to adhere to new anti-forced labour legislation. Named the Forced and Child Labour in Supply Chains Act, the legislation will introduce due diligence reporting requirements that will come into effect later in May 2024.
White & Case LLP, a global law firm provides an in-depth analysis of this forthcoming legislation. They highlight a few key points that legal professionals, especially those working in large corporations and law firms should be aware of.
- Firstly, the Act aims to crackdown on forced and child labor in global supply chains by placing new obligations on entities that are importing goods into Canada.
- Secondly, these entities will be required to submit an annual public report on actions taken to prevent and reduce the risk of forced and child labor in their supply chains.
- Lastly, severe non-compliance penalties including fines and potential imprisonment are prescribed for failure to adhere to these requirements.
With the implementation of the Act, Canadian companies with complex supply chains now have an impetus to examine and address any potential risks of forced or child labor. The upcoming changes are set to reshape the business landscape, driving companies to create safer and more responsible supply chains. As of now, corporations and law firms should begin to interpret and implement the requirements of the Act to ensure compliance once the Act comes into operation.
Regardless of the challenges that lie ahead, the new Act is a significant step towards greater transparency and corporate responsibility in preventing forced and child labor in global supply chains. Legal professionals are thus urged to familiarize themselves with the requirements of the Act as early as possible to avoid any potential risks and penalties associated with non-compliance.