The Federal Government has passed Bill S-211 which takes effect on January 1, 2024. It requires all effected companies to make reports, as set out below, as of May 2024. It applies where:

1. The business sells or distributes goods within Canada or elsewhere or imports goods produced outside of Canada; and
2. Is listed on a Canadian stock exchange or has assets, or a place of business or otherwise, does business in Canada; and
3. In at least two of its last fiscal years, has assets of $20 million, $40 million in revenue and 250 employees.

Where these conditions are met, the company must report:

1. On its structure and its supply chain;
2. Its policies and due diligence process in relation to forced or child labour;
3. What parts of its business and supply chain that carry a risk of the above and what steps it has taken to manage such risk;
4. What measures it has taken to remediate forced and child labour and lost income to impacted families;
5. Training provided to employees on the above;
6. Its effectiveness in ensuring the avoidance of the use of forced or child labour.

This report must be publicly available on the company’s website. The failure to comply will result a penalty of up to $250,000.