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Recent updates from Public Safety Canada ("PSC") provide important new insights ("Updated Guidance") into the scope and content of the obligations under Canada's modern slavery reporting regime, the Fighting Against Forced Labour and Child Labour in Supply Chains Act (the "Act"). These updates are intended to:
- simplify language and reduce duplication across webpages, making requirements easier to understand, addressing common questions and submission errors;
- include practical examples from the international reporting template published this summer, as discussed in our prior client alert - Supply Chains Act Alert: Canada, UK, and Australia Jointly Release New Multi-Jurisdictional Modern Slavery Reporting Template; and
- provide additional clarity on the meaning of "very minor dealings", attestation requirements, including acceptable signature formats, and the exclusion of personal information from submissions.
Similar updates were introduced at the start of the 2025 reporting cycle, which, as previously discussed, significantly influenced both the scope of the reporting obligation and its implications for businesses. While the Updated Guidance is narrower in scope, it may still affect how businesses determine whether the Act applies to them and guide their approach as they prepare for the annual reporting deadline of May 31, 2026.
Scope of Reporting Obligation
The following is a summary of PSC's Updated Guidance.
Enforcement Position on Solely Selling and Distributing: The Updated Guidance removes the language relating to enforcement in instances where entities only engaged in selling and distributing did not file a report under the Act. Previously, PSC had indicated that: "Entities solely involved in distributing and selling are not expected to report under the Act. Public Safety Canada will not seek enforcement action in those instances."
The Updated Guidance removes the second sentence from the above quote.
While the rationale behind PSC's decision to remove the explicit assurance on enforcement action remains unclear, it appears from the Updated Guidance that if an entity is only involved in distributing and selling goods, and not in importation or production, PSC continues not to expect them to report under the Act.
Guidance on the interpretation of "very minor dealings": Another important change in the Updated Guidance relates to PSC's interpretation of "very minor dealings". While this concept does not appear in the Act, PSC had previously indicated that entities only engaged in such minor dealings would not be expected to file a report. Outside of general commentary linking "very minor dealings" to "generally accepted principles of de minimis", PSC offered little specificity on how to define the concept.
The Updated Guidance now clarifies that entities whose production or importation activities are "incidental, low-volume, or not central to its core business" may consider those activities as "very minor dealings". PSC also instructs entities to apply judgment based on the scale, frequency, and relevance of these activities within their broader operations. This may provide some comfort to entities that are seeking to define their activities within this concept in order to be excluded from the Act's reporting requirements.
Changes to Content of Report: The Updated Guidance also introduces small adjustments to the substance of what must be reported. Here, we offer a summary of a few notable changes:
- For the Steps taken to prevent and reduce risks of forced labour and child labour section, the Updated Guidance now also references "Who in the organization is responsible for identifying, assessing and responding to risks, and the governance structure that provides senior level oversight" and "How the organization engages with external stakeholders such as industry initiatives, NGO, trade unions, or government agencies on preventing supply chain risks" as examples of details that an entity may choose to include.
- For the Structure, activities, and supply chains section, the Updated Guidance removes references to "services" and "service providers", leaving the focus on "goods" and "suppliers". Further, this section no longer states that "entities should also describe the activities of any entities under their control". Previously, this section emphasized that the reporting process was intended to help enhance supply chain visibility as much as possible. The Updated Guidance revises this language to focus on the expectation that entities identify and report on the sources of their goods, thereby demonstrating progress and a commitment to continuous improvement in supply chain transparency.
- For the Policies and due diligence processes section, the Updated Guidance now states that entities should provide a summary of actions, programs, and initiatives undertaken to prevent and reduce risks in the organization's operations and supply chains.
- For the Assessing effectiveness section, the Updated Guidance now states that entities should set goals to ensure the organization makes year-on-year progress in identifying, preventing and responding to risks and demonstrate in their report the short, medium and long-term plans to achieve the desired goals.
International Reporting Template: The Updated Guidance now links to the optional multi-jurisdictional reporting template developed jointly by Canada, the United Kingdom, and Australia last year. Entities subject to reporting obligations in multiple jurisdictions may use this template to streamline compliance, although they remain responsible for ensuring that the distinct legal and administrative requirements across all applicable jurisdictions have been met. We provide guidance on this new template in greater detail in our client alert: Supply Chains Act Alert: Canada, UK, and Australia Jointly Release New Multi-Jurisdictional Modern Slavery Reporting Template.
Attestation and Signature Requirements: Additional details on the attestation and signature requirements now specify that wet, typed, or digitally inserted signatures of a member of the governing body are acceptable, but typing "signed" or leaving the signature block blank do not constitute a signature.
Emphasis on Protection of Personal Information: The Updated Guidance strongly emphasizes that personal information (as broadly defined in section 3 of the Privacy Act) should not be included in either the questionnaire or the report. If such information is included, PSC will request that the entity edit and resubmit the report. Reports and questionnaire responses should not include the personal information of employees of the organization or any other persons. Among other things, personal information may include addresses, phone numbers, e-mail addresses, IP addresses, social insurance numbers, and other personal identifiers.
Questionnaire Guidance and Use of Data: The Updated Guidance reiterates that entities are required to complete an online questionnaire as part of their annual reporting, and that the responses provided in the questionnaire must be consistent with the report. PSC also clarifies that questionnaire responses are used internally for cataloguing and analysis, while the PDF report remains the public-facing document.
Conclusion
Although the Updated Guidance contains important updates, it does not constitute a fundamental departure from prior PSC guidance. t PSC appears to be developing further consistency and stability in its interpretation of the Act.
Entities subject to reporting requirements should remain attentive to ongoing updates to PSC's administrative positions, as we expect it to continue to refine its approach. While PSC's initial priority has been to promote education and awareness of the Act, the improved stability and understanding within the reporting community may prompt PSC to become more proactive in overseeing and enforcing the Act's obligations.
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