EU is moving towards more sustainable and socially responsible public procurement. With Directive 2014/24/EU to encourage Europeans to “buy social” – though not specifically targeting supply chains. Article 57 of Directive 2014/24/EU requires public authorities to exclude a business from the procurement or award procedure if it has been convicted by final judgement for child labour or human trafficking
France transposed Directive 2014/24/EU into national law through Ordinance no. 2015-899 of 23 July 2015 relating to public procurement contracts.This law and its implementing decree were developed to ensure that there is transparency, equal treatment of potential bidders, and open access to public procurement such as open public announcement and competition. All contracts exceeding 25,000 Euros are subjected to these requirements and must abide by all labour laws and ensure that there is not exploitation of workers.
Who needs to report?
Entities will need to report under the Act if they are an entity or carry on business in that country with a minimum annual consolidated revenue of $100 million.
What does reporting entail?
Reporting obligations relate to the risk of modern slavery in the operations and supply chain of a reporting entity (and its owned and controlled entities), as well as the steps it has taken to respond to the risks identified.
Unlike other jurisdictions, the reporting criteria in Canada are mandatory. Reporting entities must have a reasonable basis for any opinions expressed in their Modern Slavery statement, so it is important that reporting entities take the time to assess their risk. The reporting criteria can be found here.
What should entities do?
It is crucial that reporting entities begin reviewing their supply chains and operations to comply with the new reporting obligations.
What is the timing?
A modern slavery statement must be submitted within six months after the end of the reporting entity’s financial year. The reporting period is the entity’s first full financial year that commences after 1 January 2020.
|Entity’s annual financial reporting period||First reporting period under the Commonwealth Act||Due date for statement|
|1 July to 30 June||1 July 2019 to 30 June 2020||31 December 2020|
|1 January to 31 December||1 January 2020 to 31 December 2020||30 June 2021|
|1 April to 31 March||1 April 2019 to 31 March 2020||30 September 2020|