Canada's Supply Chain Act

June 18, 2024 | Written by GreenSoft Technology, Inc.

Canadian Forced Labour Regulation Now in Effect

Canada’s Supply Chains Act regarding forced labour requires annual reporting, effective January 2024

Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act (Supply Chains Act) regulation took effect on January 1, 2024.

The regulation mandates that affected organizations must submit a report to Canada’s Minister of Public Safety by May 31 each year.

Reports must include completing a compulsory questionnaire, and detailing the steps taken during the previous financial year to prevent and reduce the risk that forced labour or child labour is used by them or in their supply chains. The reports must be publicly posted on the organization’s website and in an electronic registry on Public Safety Canada’s website.

Affected organizations are any entities (defined below) or government institutions that:

• produces, sells, or distributes goods in Canada or elsewhere,
• imports into Canada goods produced outside Canada, and
• controls another entity engaged in such production, sale, distribution, or importation.

According to the Act, an "entity" encompasses any organization listed on a Canadian stock exchange or one connected to Canada (defined as having a Canadian place of business, engaging in Canadian business activities, or possessing Canadian assets) and meeting at least two of the following three 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; or
• employs an average of at least 250 employees.

More information about the Supply Chain Act can be found online.

GreenSoft Technology offers a supply chain data collection solution

GreenSoft can help your company comply with the Canadian Supply Chain Act, as well as the UK Modern Slavery Act (MSA), the anti-slavery and human trafficking provisions of the US Federal Acquisition Regulation (FAR), and the California Transparency in Supply Chains Act.

With our Anti-Slavery and Human Trafficking services, we will collect Statements of Compliance from your suppliers for you so that you can complete the reports and questionnaires required to be submitted to the various government agencies.

We can also help your company and your suppliers generate their Statement of Compliance, and we can evaluate and analyze your risk level. With our Anti-Slavery and Human Trafficking services, your company can prove you have done due-diligence on your supply chain to avoid modern slavery and human trafficking risks.

Contact us to learn more.