Modern Slavery Statement (Canada)

A Modern Slavery Statement in Canada sets out the steps the organisation takes to prevent modern slavery in its operations and supply chain, governed primarily by the Fighting Against Forced Labour and Child Labour in Supply Chains Act (S.C. 2023, c. 9).

Bill S-211 applies to entities that are listed on a Canadian stock exchange, or have a place of business in Canada, do business in Canada, or have assets in Canada, and meet at least two of three financial thresholds in at least one of the two most recent financial years: assets of at least $20 million, revenue of at least $40 million, and an average of at least 250 employees. Government institutions listed in Schedule III of the Financial Administration Act are also covered.

Covered entities must report annually on: their structure, activities, and supply chains; their policies and due diligence processes related to forced and child labour; the parts of their business and supply chains at risk; the measures taken to assess and manage those risks; any remediation measures and their effectiveness; training provided to employees; and how the entity assesses its effectiveness in confirming these practices are not occurring. The statement must be approved by the entity's governing body (board of directors), signed by a director or equivalent officer, submitted to the Minister of Public Safety and Emergency Preparedness by May 31 of each year, and published on the entity's website.

The legal framework governing the Modern Slavery Statement (Canada) in Canada draws on several key statutes and regulatory bodies. Under the Canada Business Corporations Act (R.S.C. 1985, c. C-44), Corporations Canada maintains the federal registry. Section 12 of the CBCA governs corporate name requirements. The Competition Bureau enforces the Competition Act (R.S.C. 1985, c. C-34). Provincial securities commissions — including the Ontario Securities Commission (OSC) and British Columbia Securities Commission (BCSC) — regulate capital markets. The Federal Court of Canada has jurisdiction under the Federal Courts Act. Parties executing a Modern Slavery Statement (Canada) in Canada should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Canada Business Corporations Act (R.S.C. 1985, c. C-44) sets the foundational requirements.

A formal Modern Slavery Statement is required when a Canadian entity satisfies at least two of the three financial thresholds (assets at least $20 million, revenue at least $40 million, and/or an average of at least 250 employees) in one of the past two financial years. The first reporting deadline under Bill S-211 was May 31, 2024, covering the 2023 financial year.

For publicly listed companies on the Toronto Stock Exchange (TSX), TSX Venture Exchange, or other Canadian exchanges, the statement is mandatory if the financial thresholds are met. These companies also face heightened investor scrutiny under ESG (Environmental, Social, and Governance) frameworks, and institutional investors increasingly review modern slavery statements as part of responsible investment due diligence.

For Canadian entities that are subsidiaries of foreign multinationals already subject to the UK Modern Slavery Act 2015, the Australian Modern Slavery Act 2018, or the EU Corporate Sustainability Due Diligence Directive, a Canadian modern slavery statement may also be required as part of the parent company's consolidated global reporting.

For mid-market companies below the mandatory thresholds, voluntarily publishing a modern slavery statement signals supply chain responsibility to customers, investors, and procurement officers of large companies that require their suppliers to demonstrate forced labour due diligence. Many federal and provincial government procurement programs are moving toward requiring modern slavery statements from suppliers. Non-compliance with Bill S-211 can result in fines of up to $250,000 per offence.

Parties in Canada should prepare a Modern Slavery Statement (Canada) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Canada Business Corporations Act (R.S.C. 1985, c. C-44), Corporations Canada maintains the federal registry. Section 12 of the CBCA governs corporate name requirements. The Competition Bureau enforces the Competition Act (R.S.C. 1985, c. C-34). Provincial securities commissions — including the Ontario Securities Commission (OSC) and British Columbia Securities Commission (BCSC) — regulate capital markets. The Federal Court of Canada has jurisdiction under the Federal Courts Act. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

Entity Identification and Reporting Period — The legal name of the reporting entity, its Canadian Business Number (BN), the financial year covered by the report, and the date of publication.

Organizational Structure and Supply Chains — A description of the entity's corporate structure, business activities, the countries and sectors from which it sources goods or services, and the key tiers of its supply chain. Identify supply chains with higher forced labour and child labour risk (by geography, sector, or product category).

Policies and Due Diligence Processes — A description of existing policies that address forced labour and child labour risks: supplier codes of conduct, procurement policies, human rights policies, and due diligence frameworks. Describe how these policies are implemented and monitored.

Risk Assessment — The methodology used to assess forced and child labour risk in the supply chain, including geographic risk mapping (high-risk countries per ILO, US Department of Labor, and other sources), sector risk assessment, and supplier risk tiering.

Risk Management Measures — The steps taken to manage identified risks: supplier audits and assessments, corrective action plans, contractual requirements with suppliers, engagement with industry initiatives (Better Cotton Initiative, Responsible Business Alliance), and whistleblower reporting mechanisms for supply chain workers.

Remediation — Any steps taken during the reporting period to remediate confirmed incidents of forced or child labour, including remediation measures to address loss of income to vulnerable workers or families.

Training — Training provided to employees (particularly in procurement, supply chain, and compliance functions) on identifying and addressing forced labour and child labour risks.

Effectiveness Assessment — How the entity measures the effectiveness of its measures, including key performance indicators and outcome data.

Attestation and Approval — The report must be approved by the entity's governing body (board of directors) and attested by a director or officer in the form prescribed by the Act.

Additional compliance elements for a Modern Slavery Statement (Canada) used in Canada include: Under the Canada Business Corporations Act (R.S.C. 1985, c. C-44), Corporations Canada maintains the federal registry. Section 12 of the CBCA governs corporate name requirements. The Competition Bureau enforces the Competition Act (R.S.C. 1985, c. C-34). Provincial securities commissions — including the Ontario Securities Commission (OSC) and British Columbia Securities Commission (BCSC) — regulate capital markets. The Federal Court of Canada has jurisdiction under the Federal Courts Act. Forms-legal.com provides this template as a starting point for Canada-compliant documentation.