To prevent forced labor in Canadian supply chains, the government has passed legislation effective January 2024 that will require companies who do business in Canada to file annual reports outlining the steps they have taken in prevention.

The legislation applies to any corporation, trust, partnership, or other unincorporated organization whose activities include producing, selling or distributing goods in Canada or elsewhere, importing goods into Canada, or controlling an entity engaged in these activities. Additionally, the entity must either:

  • be listed on a stock exchange in Canada
  • have a place of business in Canada
  • do business in Canada
  • have assets in Canada

The entity must also meet two of the following three criteria for at least one of its two most recent financial years:

  1. over 250 employees
  2. over $40M in revenue
  3. over $20M in assets

Reports will be due May 31, 2024, and companies that fail to submit will be subject to a fine of up to $250,000. Visit the Canadian Public Safety website to learn more about reporting requirements. If you have any questions, please reach out to Mohawk Global.

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