Get your supply chain onboard with forced labour compliance

The Canadian Modern Slavery Act is now in force, and organizations must prepare for the first reporting deadline of May 31, 2024. 

For many businesses, this means reviewing how they manage forced labour and child labour risks across their supply chains. Companies that are not fully prepared may feel pressure to gather the necessary information and confirm their compliance approach before reporting deadlines arrive.

One of the most important steps is engaging your supply chain. Contractors, suppliers and partners must understand the importance of compliance and the role they play in providing accurate information.

So where should organizations begin? 

Preparing for forced labour reporting requirements 

Organizations subject to the legislation must submit an annual report outlining how they identify and manage forced labour and child labour risks.

This report requires companies to disclose a range of information about their operations and supply chains.

Key elements typically include:

• Organizational structure, activities and supply chains

• Policies and due diligence processes related to forced labour and child labour

• Areas of the business or supply chain where risks may exist

• Steps taken to assess and manage those risks

• Remediation measures taken where issues are identified

• Training provided to employees on forced labour and child labour risks

• How the organization evaluates the effectiveness of its risk mitigation measures

Gathering this information early helps organizations prepare accurate reporting and better understand where improvements may be needed.  

Gathering the information required for compliance 

Collecting the data required for reporting often highlights areas where information is incomplete or difficult to track.

Organizations should assess the quality and reliability of their data while gathering information. This includes reviewing whether due diligence processes are documented and whether supply chain risks are fully visible.

Some organizations discover gaps in how they track contractor and supplier compliance activities. Identifying these gaps early allows teams to begin implementing improvements before reporting deadlines arrive. 

Identifying gaps in your compliance process 

Once organizations begin collecting the necessary information, it becomes easier to identify weaknesses in existing compliance processes.

Common questions to consider include:

• Is the organization consistently tracking due diligence activities?

• Are all contractors and suppliers included in compliance monitoring?

• Are there areas of the supply chain where visibility is limited?

Addressing these questions helps organizations strengthen oversight and build a clearer understanding of potential risks within their supply chains. 

Why communication across your supply chain matters 

Effective communication is essential when implementing forced labour compliance measures.

Contractors and suppliers must understand the importance of providing accurate information and supporting compliance activities. When organizations clearly communicate expectations and explain why information is required, partners are more likely to participate effectively.

This collaboration helps improve data accuracy and strengthens overall visibility across the supply chain. 

Strengthening compliance through collaboration 

Managing supply chain compliance can be complex, particularly for organizations working with large contractor networks.

Many organizations work with specialized contractor management providers to support data collection, qualification processes and supply chain visibility.

Solutions such as those offered within the Veriforce ecosystem help organizations collect compliance information, track supplier qualification requirements and maintain clearer oversight of contractor activity across multiple tiers of the supply chain.

Taking a structured approach to contractor and supply chain management helps organizations improve visibility, strengthen due diligence practices and support ongoing compliance with evolving regulations.