Summary#
This bill creates the Modern Slavery Act. It requires certain large or listed companies that make, sell, or import goods to report each year on steps they take to prevent forced labour and child labour in their supply chains. It sets inspection powers, penalties for non‑compliance, and a public reporting process. It also amends the Customs Tariff so the government can exclude goods made with forced or child labour from being imported into Canada.
- Who must report: listed companies in Canada and large entities that meet at least 2 of these: $20 million in assets, $40 million in revenue, 250 employees (s.2 “entity”).
- Annual public report due by May 31 on risks, policies, actions, remediation, and training; a director or officer must attest it is true, accurate, and complete (s.7).
- Reports must be posted in a prominent place on the entity’s website (s.8).
- Government inspectors can enter business sites, review records, and order corrective measures; obstruction is an offence (s.9–13).
- Fines up to CAD $250,000 for non‑compliance or false statements; officers and directors can be personally liable (s.15).
- The Governor in Council can bar imports of goods made with forced or child labour by regulation under the Customs Tariff (Customs Tariff s.132(1)(m)(i.1)).
What it means for you#
- Households
- Some products could be unavailable in Canada if the government excludes goods made with forced or child labour from import (Customs Tariff s.132(1)(m)(i.1)). Scale of impact: Data unavailable.
- Workers
- Employees of covered entities may receive training on forced and child labour risks (s.7(2)(e)). Timing: annual cycle; reports due by May 31.
- Businesses
- Covered entities must file an annual report to the Minister by May 31 describing steps taken in the previous financial year to prevent and reduce forced and child labour risks in production or imports (s.7(1)–(2)).
- A director or officer must attest the report is true, accurate, and complete; the report must be posted publicly on the entity’s website (s.7(3), s.8).
- Entities must assist inspectors, provide documents and data on request, and may face on‑site examinations and temporary limits on access to parts of a facility during inspections (s.10(2), s.10(4)).
- Non‑compliance, obstruction, or false statements can lead to fines up to $250,000 per offence; officers and directors can be personally liable (s.15).
- Parent companies that control other entities are covered; “control” can be direct or indirect and is broadly defined, including deemed control of subsidiaries’ subsidiaries (Control; s.2, deeming rule).
- Importers and retailers
- If you import goods, you are covered by the reporting duty if you meet the “entity” thresholds or are listed on a Canadian exchange (s.2, Application).
- The government may make regulations to exclude goods made with forced or child labour from import; conditions for exclusion will be set by regulation (Customs Tariff s.132(1)(m)(i.1)).
- Small businesses
- Businesses below the thresholds and not listed on a Canadian exchange are not covered unless later prescribed by regulation (s.2, s.14). However, they may be asked for information by a parent company that must report.
- Governments
- The Minister of Public Safety must table an annual summary report to Parliament by September 30 and publish it within 30 days after tabling in both Houses (Report to Parliament).
- The Act takes effect on January 1 of the year after Royal Assent (Coming into Force).
Expenses#
Estimated public cost: Data unavailable.
- No fiscal note identified. The Act includes no explicit appropriations (Data unavailable).
- Government administration and inspection costs: Data unavailable.
- Potential fine revenue: up to $250,000 per offence; total revenue uncertain (s.15).
- Private‑sector compliance costs (reporting, training, supply‑chain due diligence): Data unavailable.
Proponents' View#
- Increases transparency and accountability by requiring annual public reports on risks, policies, actions, remediation, and training, with director/officer attestation (s.7–8).
- Targets larger market actors by scope, using clear size thresholds (assets $20 million, revenue $40 million, 250 employees) and stock‑exchange listing to focus on entities with broader supply chains (s.2 “entity”).
- Adds consequences beyond disclosure by enabling regulations to exclude goods made with forced or child labour from import, addressing overseas risks tied to Canadian markets (Customs Tariff s.132(1)(m)(i.1)).
- Strengthens enforcement through inspection powers, corrective orders, and fines, including personal liability for officers and directors, which supports truthful reporting (s.10, s.13, s.15).
- Creates public oversight via the Minister’s annual report to Parliament that summarizes risks, actions, and remediation across reporting entities (Report to Parliament).
Opponents' View#
- Focuses on reporting rather than mandating prevention or independent audits; companies could meet the law with minimal changes if reports are superficial (s.7–8). The Act does not impose a duty to eliminate forced or child labour.
- Enforcement powers verify compliance with reporting and access requirements, not labour conditions abroad; effectiveness depends on company candour and limited penalties (s.10, s.15).
- Maximum fine of $250,000 may be too low to deter large firms; the Act sets no escalating penalties tied to company size (s.15).
- Compliance could be complex and costly for entities with multi‑tier global supply chains; the Act provides no cost relief or phased‑in timelines (Data unavailable).
- Broad “control” and deemed control rules extend obligations across corporate groups globally, increasing reporting scope and legal exposure for parent companies (Control; s.2).
- Import exclusion authority may disrupt supply chains if applied, but criteria and process are left to future regulations; regulatory uncertainty for importers (Customs Tariff s.132(1)(m)(i.1), s.14).
- Definitions apply Canadian child‑labour standards to foreign contexts for reporting, which may create interpretation and comparability challenges (s.2 “child labour”).