Bill S-211, an Act Fighting Against Forced Labour and Child Labour in Supply Chains and amending Customs Tariff, came into effect on January 1, 2024, and has a May 31, 2024, reporting deadline. Crowe MacKay's trusted advisors share details on Bill S-211, including what it is, those impacted, applicable deadlines, and more.
It is important to notify your trusted advisor if Bill S-211 applies to you as soon as possible to ensure you meet the May reporting deadline.
Background on Bill S-211
This Bill requires businesses to report on their efforts to combat forced and child labour in supply chains. There can be fines of up to $250,000 for organizations that fail to submit a satisfactory annual report, make it public (details should be posted on your website), obstruct a designated official, or fail to comply with an order from the Minister.
The Bill also amends the Customs Tariff to prohibit the importation of goods manufactured or produced, in whole or in part, by forced child labour.
Who Bill S-211 Impacts
Public and Private Entities
Any corporation, trust, partnership or other unincorporated organization that is:
- A Public Entity (listed on a stock exchange in Canada)
- A Non-Public Entity that has a place of business in Canada, does business in Canada, or has assets in Canada and that, based on its consolidated financial statements, meets at least two of the following conditions for at least one of its two most recent financial years:
- has at least $20 million in assets
- has generated at least $40 million in revenue
- employs an average of at least 250 employees
The Bill applies to any of the entities defined above that:
- produces, sells, or distributes goods in Canada or elsewhere;
- imports goods into Canada produced outside of Canada; or
- controls an entity engaged in the above activities.
Government Institutions
Any government institution producing, purchasing, or distributing goods in Canada or elsewhere.
Deadlines
A completed questionnaire and report must be submitted to the government by May 31, 2024.
Documents can be submitted here
Detailed Reporting Guidance
A company can submit a report to the Minister individually or jointly with other entities. An entity's report needs to include information on each of the following:
- Its structure, activities, and supply chains
- Its policies and due diligence processes in relation to forced labour and child labour
- The parts of its business and supply chains that carry a risk of forced labour or child labour being used and the steps it has taken to assess and manage that risk
- Any measures taken to remediate any forced labour or child labour
- Any measures taken to remediate the loss of income to the most vulnerable families that results from any measure taken to eliminate the use of forced labour or child labour in its activities and supply chains
- The training provided to employees on forced labour and child labour
Learn more about preparing a report
Additional Liability Considerations
Senior executive teams and boards of directors can be held personally liable if they directed, authorized, assented to, acquiesced, or participated in any offences under the Act.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.