The Act requires companies with at least $330 million in annual gross revenue to report on measures taken to address the risk of forced labor in their operations and supply chains. The reporting requirements are aligned with international standards, and companies must provide information on their policies, due diligence, and remediation efforts.
Failure to comply with the reporting requirements can result in fines and reputational damage. The Act is part of a global trend towards increased regulatory scrutiny of supply chain practices and underscores the importance of companies proactively addressing human rights risks in their operations.
Failure to comply with the Act, including failing to prepare or publish a report, refusing to assist or obstructing an investigation, or disobeying a corrective order, constitutes an offense punishable by summary conviction and a fine of over $250,000.
Providing knowingly false or misleading information to the minister or designated personnel also constitutes an offense, punishable by summary conviction and a fine of up to $250,000. Furthermore, any director, officer, agent, or employee who directed, authorized, assented to, acquiesced in, or participated in the offense is liable for the punishment provided for the offense, regardless of whether or not the entity was prosecuted or convicted.
The Act requires that on or before May 31 of each year, government institutions and entities report to the Minister of Public Safety and Emergency Preparedness on the steps taken during the previous financial year to prevent and reduce the risk that forced labor or child labour is used (i) in the case of government institutions, at any step of the production of goods produced, purchased or distributed by the government institution; and (ii) in the case of entities, at any step of the production of goods in Canada or elsewhere by the entity or of goods imported into Canada by the entity.
FRDM risk maps your supply chain and monitors risk at all levels, including risky commodities like cobalt, cotton and palm oil.
FRDM helps assess your company’s policies and procedures as well as federating the policies and procedures of all suppliers.
Reporting must include information about a company's risk analysis of the entire supply chain and the steps it has taken to assess and manage that risk. FRDM’s risk algorithm is trusted by businesses and governments to determine risk and prioritize oversight. All mitigation activities are logged on FRDM with ability to report out.
Once risk is determined FRDM offers multiple mitigation tools to address risk.
incurred by the most vulnerable families that results from any measure taken to eliminate the use of forced or child labour from its activities and supply chains. If an infraction is found, FRDM can assist in any remediation efforts. 5% of your subscription fee is donated to charities working to reduce forced and child labor.
FRDM is a leader in supply chain risk management and modern slavery mitigation. We serve Fortune 500 clients. Our technology has been covered by CNN, Vogue, New York Times, Fast Company, Wall Street Journal and others.