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Federal Canada – New Modern Slavery Reporting Requirements
Canada has enacted new legislation to combat modern slavery in supply changes. Bill S-211 received Royal Ascent on the 11th of May 2023 and will come into effect on the 1st of January 2024.
Corporations incorporated federally in Canada will now be required to file an annual report on their steps taken to combat modern slavery.
The requirements only apply to corporations who are incorporated federally (home registration) in Canada and meet the following criteria:
- Are listed on the Canadian stock exchange
- Have a place of business or assets in Canada that, based on their consolidated financial statements, meets at least two of the following conditions for at least one of the two most recent financial years:
- have at least $20 million in assets;
- have generated at least $40 million in revenue; or
- employ an average of at least 250 employees.
The first report is due by the 31st of May 2024; however, the Federal government is yet to indicate where the annual report needs to be filed.
The risk of non-compliance
Penalties of up to $250,000 CAD are imposed for failing to file a report or for issuing a false report.
Bill S-211 also creates personal liability for directors and officers that direct, authorize, assent to, acquiesce in or participate in any offence.