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Why is forced labour and child labour a concern for Canadian businesses?
The new law introduces new reporting requirements for certain Canadian and foreign
businesses to prevent and reduce the risks of modern slavery in their supply chain.
Many businesses are structured to reduce exposure to labour risks in production and
manufacturing – whether through outsourcing, contract labour, or other legal structures.
Modern slavery law in Canada and in other jurisdictions create broader accountability for
workers impacted by businesses, beyond the workers directly hired by the organization.
What is forced labour and child labour?
The Act defines the terms “forced labour” and “child labour” broadly to incorporate
international customary laws and Canadian domestic laws.
With respect to forced labour, these laws recognize that:
Workers have the right to choose to work, without threats to their safety or the safety of a
person known to them.
Indicators of forced labour include working without pay, excessive overtime, debt
bondage, restriction of movement, deception, intimidation, threats of violence or the
removal of identity documents. Wages and working conditions are a key factor – while
poor working conditions and forced labour are not equated, extremely low working
conditions can be an indication of forced labor.
Victims of forced work are often isolated in remote locations and denied contact with the
outside world. Forced labour may involve taking advantage of workers in a vulnerable
position, such as workers who lack knowledge of the local language or legal rights.
With respect to child labour, these laws recognize that:
Children have the right to education. Work cannot interfere with or deprive them of the
opportunity to attend school, or attempt to combine school attendance with excessively
long hours of work.
Children cannot work under conditions that are mentally, physically, socially or morally
dangerous to them. Based on Canadian employment standards, most work is unsafe for
children under the age of 14 – and children under the age of 16 should not be permitted
to perform hazardous work.
Information is current to June 22, 2023. The information contained herein is of a general
nature and is not intended to address the circumstances of any particular individual or entity.
Although we endeavour to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue
to be accurate in the future. No one should act upon such information without appropriate
professional advice after a thorough examination of the particular situation.
Connect with us
We can help you assess how the new Act may affect your business and steps you may take
to prepare for these new reporting obligations. For more details, contact your KPMG adviser
or one of the following professionals:
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