Meet Canada Modern Slavery Act requirements with confidence

Canada Modern Slavery Act at a glance

Understand the key reporting requirements, deadlines and obligations under Canada’s Modern Slavery Act (formerly Bill S-211).

What is Bill S-211?

Canada Bill S-211 enacted the Fighting Against Forced Labour and Child Labour in Supply Chains Act and amended the Customs Tariff. Commonly referred to as the Canada Modern Slavery Act, Bill S-211 establishes reporting obligations related to forced labor and child labor and extends Canada’s import prohibition to goods produced wholly or partly with child labor.

Who has a reporting responsibility?

Reporting obligations generally apply to organizations that meet both an entity test and an activity test. An organization may qualify as an “entity” by being listed on a Canadian stock exchange or by having a place of business, doing business or holding tangible assets in Canada and meeting at least two of these global thresholds in at least one of its two most recent financial years: $20 million in assets, $40 million in revenue or an average of 250 employees. Thresholds are assessed using consolidated financial statements.

Under Public Safety Canada’s current guidance, an entity generally has a reporting obligation if it produces goods in Canada or elsewhere, imports goods into Canada, or controls an entity that does so. For this purpose, the importer is generally the organization that caused the goods to be brought into Canada, rather than a customs broker or freight forwarder acting on its behalf. While the Act also refers to selling and distributing goods, current government guidance states that entities solely engaged in selling or distributing are not expected to report.  

When and how do organizations report?

Organizations subject to the Act must report annually by May 31, covering the steps taken during their previous financial year to prevent and reduce forced labor and child labor risks. Before submission, the report must be approved by the organization’s governing body, and that approval must be evidenced by a statement signed by one or more members of that body.

Reporting entities must also complete Public Safety Canada’s online questionnaire and publish their report prominently on their website. Organizations may submit a joint report covering more than one entity where applicable. Submitted reports are made available through a public electronic registry, and entities incorporated under the Canada Business Corporations Act or another Act of Parliament must also provide the report to shareholders with their annual financial statements.  

What must the report include?

Annual reports must address the organization’s structure, activities and supply chains; policies and due diligence processes; forced labor and child labor risks and the steps taken to assess and manage them; employee training; and how the organization assesses the effectiveness of its efforts.

Organizations must also report on measures taken to remediate forced labor or child labor and measures taken to remediate any loss of income experienced by the most vulnerable families as a result of steps taken to eliminate these practices.  

What are the penalties for non-compliance?

Failure to comply with certain requirements of the Act, obstructing a designated person or knowingly providing false or misleading information can result in a summary conviction fine of up to $250,000. Directors and officers may also be personally liable if they directed, authorized, assented to, acquiesced in or participated in an offence.  

How does the import prohibition apply?

Bill S-211 amended the Customs Tariff to extend Canada’s existing prohibition on importing goods produced wholly or partly with forced labor to include goods produced wholly or partly with child labor. This import prohibition is separate from the Act’s entity reporting thresholds and can apply to imported goods regardless of the importer’s size.

View official Supply Chains Act guidance from Public Safety Canada