Canada’s anti-modern slavery legislation, the Fighting Against Forced Labour and Child Labour in Supply Chains Act, (the “Act”) came into force on January 1, 2024.
The Act requires government institutions and certain entities to provide annual reports on how they have addressed forced labour and child labour risks in regard to their operations and supply chains.
The first reporting deadline is May 31, 2024.
Application of the Act
The Act applies to government institutions and certain entities, including corporations, trusts, partnerships or other unincorporated organizations, that produce, sell, distribute or import goods or that control entities that do so.
Are municipalities considered “corporations” within the meaning of the Act?
It is clear from the definition of “government institutions” that the Act applies only to federal government institutions.
In Canada, the governing legislation for municipalities generally defines a municipality as a “corporation” or “municipal corporation.” As a result, when the legislation was first introduced, there was some uncertainty as to whether the word “corporation” in the Act was intended to include municipal corporations.
Public Safety Canada has recently provided clarification that provincial and municipal governmental institutions are not subject to the reporting requirements as per the definition of “government institutions” in the Act.
However, some provincial agent Crown corporations and corporations controlled by a municipality may be subject to the reporting requirements by falling under the definition of “entity.”
Takeaways for municipalities
Although municipal governments are not subject to the reporting requirements, municipalities should seek legal advice as to whether any of their controlled corporations are reporting entities under the Act.
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Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.