The Canadian government has provided updated guidance on the Supply Chains Act (formerly known as Bill S-211). Some of the updates put in writing what was stated during the webinar held in January by Public Safety Canada, or otherwise provide clarification.
Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act (the Supply Chain Act), came into force on January 1, 2024. It requires certain companies to file reports on their supply chain activities (about measures taken to limit the presence of child labour and forced labour in their supply chains). For companies that are subject to this reporting requirement, the first report is due on May 31, 2024.
On March 7, 2024, the federal government published addition guidance, together with a series of FAQs. The update offers some degree of clarify re. which companies are required to file a report. Other parts of the guidance relate primarily to formatting and other routine considerations. However, there is still a basic need to clearly outline the obligations of reporting entities through a formal regulation process.
A review of these updates is available in the following two briefs by Norton Rose Fulbright and Fasken.
The text of the notification from Public Safety Canada follows:
We would like to inform stakeholders that updated guidance relating to the Supply Chains Act is now available on our website: Forced Labour in Canadian Supply Chains (publicsafety.gc.ca).
As part of this update, our website now includes a “Contact us” page with answers to the most frequently asked questions. Clarity has also been provided within our guidance for entities around:
- Format and length of report
- Publishing report to the entity’s website
- Report requirements
- How to submit reports in both official languages
- Business presence in Canada
- How financial statements should be assessed for subsidiaries and parent companies
- Activities that create reporting obligations
- Application to provincial and municipal governments
Please note that the deadline for submitting the first report is May 31, 2024. Inquiries about the Supply Chains Act may continue to be sent to: SupplyChainsActInquiries-LoiChainesApprovisionnementEnquetes@ps-sp.gc.ca.