Canadian Companies Show Increased Focus on Modern Slavery Remediation, But Compliance Remains a Challenge
Ottawa, ON – New data released from the second year of reporting under Canada‘s Fighting Against Forced Labor and Child Labour in Supply Chains Act reveals a significant increase in companies taking steps to address modern slavery risks, especially through workforce reintegration and psychosocial support for affected workers.However,the report also highlights ongoing challenges with remediation of income loss for vulnerable families and overall compliance with the Act.
The 2025 Annual Report, published by Public Safety Canada, shows that 78% of reporting entities took steps to address risks of forced or child labour in their supply chains, a rise from 69% in the first year. Of those taking action,the most common measures included providing training to employees (72%),engaging with suppliers (68%),and implementing or improving traceability systems (63%). Notably, 38% of companies offered workforce reintegration programs, and 34% provided psychosocial support. Only 0.5% of companies made formal apologies related to modern slavery issues.
The Act requires companies to report on measures taken to remediate income loss for families impacted by the elimination of forced or child labour.The vast majority - 95% of respondents – indicated this requirement was not applicable to their circumstances. Though, only 1% reported having taken remediation measures and plan to continue identifying and addressing gaps, while the remaining respondents had not taken any such steps.
Public Safety Canada prioritized raising awareness of the reporting requirements in the second year, resulting in no compliance orders or fines being issued. The full Annual Report is available here.
The findings underscore the growing recognition of modern slavery risks within Canadian supply chains, but also point to a need for continued effort in ensuring meaningful remediation and full compliance with the Act as reporting requirements mature. Further analysis of the 2024 reporting statistics is available from Ropes & Gray here.
