The Fighting Against Forced Labour and Child Labour in Supply Chains Act, enacted on May 11, 2023, requires affected Canadian companies to make a real shift in terms of compliance and transparency. This law, which is part of Canada’s international commitments, aims to eradicate forced labour and child labour at all stages of the production and importation of goods, both in Canada and abroad.
Who is the law aimed at?
The law targets entities that produce, sell, or distribute goods, or that import into Canada goods manufactured abroad, and that meet certain financial or size criteria (assets, revenue, number of employees). Federal institutions are also subject to these obligations.
Reporting Obligation and May 31 Deadline
Each year, no later than May 31, the affected companies must submit a report detailing the measures taken to prevent and mitigate the risks of forced labour or child labour in their supply chains. This report must notably present:
- The structure of the company and its business activities
- The policies and due diligence processes
- The identification and management of risks in the supply chain
- The corrective and remediation measures
- Employee training
- The evaluation of the effectiveness of the actions taken
Why does this law change the game?
Compliance with this law is not just a formality: it exposes companies and their directors to financial penalties, but also to reputational risks if they neglect their obligations. Above all, it is part of a global trend where social responsibility and ESG (environmental, social, governance) standards are becoming essential to access markets and build sustainable partnerships.
An Opportunity to Seize
Preparing a compliant report is also an opportunity to review your practices, strengthen partner trust, and stand out on the international stage. Companies that anticipate and integrate these requirements into their ESG strategy can turn an obligation into a competitive advantage.
Questions about your obligations or about preparing your report?
Our firm supports companies at every stage of compliance with the Fighting Against Forced Labour and Child Labour in Supply Chains Act. Contact us to turn this regulatory constraint into a lever for responsible growth.
