What is Bill S-211? Bill S-211 is an Act to enact the Fighting Against Forced Labor and Child Labor in Supply Chains Act and to amend the Customs Tariff (the Act or Canadian Modern Slavery Act).
To protect vulnerable populations from human rights abuses and exploitation, the Canadian Parliament passed Bill S-211 or Fighting Against Forced Labour and Child Labour in Supply Chains Act on May 3, 2023. The bill received royal assent and came into force on January 1, 2024.
The backdrop
The elaborate network of supply chains across continents unveiled the widespread existence of forced labor and child labor. Consequently, Canada being a noteworthy importer of goods, was troubled with the reality that most of these imports were a product of forced and child labor. A 2023 Supply Chain Risk report released by World Vision depicts a 50% surge in imports of risky goods in the last decade in Canada.
The Supply Chain Risk report showed that Canadian imports potentially made through forced or child labor, especially in common sectors like electronics and clothing, had risen to $48 billion in 2021.
As a result, combatting the rampancy of child labor and forced labor in Canadian supply chains emerged as a critical focal point. Subsequently, Canada introduced Bill S-211 underlining its commitment to ethical trade practices that required certain Canadian businesses to prevent the risks of modern slavery in the supply chain.
This Act was created to protect labor rights—aligning with the efforts of other countries, including the United Kingdom, the United States, European Union and Australia; fulfilling Canada’s commitments under international agreements like the USMCA (United States-Mexico-Canada Agreement) to combat child and forced labor.
Enforcement of Bill S-211
The Act applies to entities involved in production, sales, distribution, or importation of goods, and government institutions. These organizations must submit annual reports detailing their supply chain practices and measures taken to address forced and child labor.
Along with mandating all Canadian businesses to report on forced labor and child labor in supply chains, this regulation also outlines the steps to reduce the risk of third parties who make use of forced/child labor within the supply chain.
In addition, Bill S-211 amends the Customs Tariff to prohibit importation of goods made or produced, in whole or in part, through forced labor or child labor.
The failure of an organization to submit a satisfactory annual report or make it public, obstructing a designated official, or not following a minister’s order is a summary offence punishable by up to $250,000 in fines.
Equally, every senior executive team member and board of directors involved in, authorized, consented to, acknowledged, or participated in any of these offenses will also be liable.
Is there an ESG (Environmental, Social, and Governance) Impact?
Certainly! Bill S-211 is a participation call to actualize a healthy, secure, and sustainable society for all of us. It is a mandate that Canadian organizations redefine business relationships with each tier of the supply chain, while focusing on the “social” aspect of the ESG perspective.
Further, this Bill encourages organizations to re-evaluate their environmental, social, and governance (ESG) strategies. Thereby, enforcing every organization to perform its due diligence towards social responsibility by identifying and monitoring the risk of labor practices within the supply chain.
This Act incentivizes Canadian companies lagging in social responsibility to adopt ESG strategies, mitigating operational risks. Additionally, the bill urges enhanced governance oversight to foster positive global impact.
Gainfront Can Prepare You for Bill S-211
The Fight Against Forced Labour and Child Labour in Supply Chains Act (Bill S-211) is now in effect, and Gainfront can help your business comply with its requirements.
Gainfront empowers businesses to ensure ethical labor practices throughout the supply chain. Our comprehensive tool offers:
- Supply chain mapping with complete visibility into your suppliers and subcontractors, across all tiers.
- Insights into supplier practices and labor conditions to identify potential areas of forced or child labor.
- Traceability of your supply chain through ownership data, ensuring you are not inadvertently supporting unethical labor.
- Tracking the effectiveness of your anti-slavery and child labor initiatives.
- Generation of transparent reports to meet compliance requirements.
Gainfront helps businesses to source ethically and protect human rights. Join the movement, stay compliant and protect your brand reputation. Learn more at www.gainfront.com
