Forced Labour

Forced labour is work or services exacted from a person under threat of a penalty and without that person's voluntary consent. The term is used in international labour and human-rights law, anti-trafficking policy, supply-chain due diligence and public procurement.

In NATO policy, forced labour or services is expressly listed among the forms of exploitation associated with trafficking in human beings. For Canadian suppliers, the term matters most through federal contract clauses and the Government of Canada's Code of Conduct for Procurement, both of which address goods made wholly or partly by forced labour.

Related terms and how forced labour is used

Several terms sit close to forced labour and often appear alongside it: forced or compulsory labour, human trafficking, slavery, servitude and forced child labour. Each is used in policy and contract language, so bid teams should read the exact wording of a solicitation rather than assume the terms are interchangeable.

NATO identifies forced labour or services as a form of exploitation that its policies seek to prevent, mitigate, counter and respond to. Its human security work addresses trafficking in human beings, including forced labour.

PSPC anti-forced-labour clauses in goods contracts

Since November 2021, Public Services and Procurement Canada (PSPC) has included anti-forced-labour clauses in all goods contracts it administers, as described in its 2023-2024 annual report on preventing forced labour in supply chains. The clauses address goods produced wholly or partly by forced labour or human trafficking.

The remedy is termination. Canada can end a contract where there is credible information from a reliable source that the purchased goods were produced, in whole or in part, using forced labour or human trafficking.

PSPC's current reporting extends this description beyond contracts. The clauses can also support setting aside a standing offer, or suspending or cancelling a supply arrangement, where credible information indicates that affected goods were produced using forced labour or human trafficking.

The Code of Conduct for Procurement

The Code of Conduct for Procurement applies to government vendors and their subcontractors. They must comply with applicable laws and with Canada's prohibition on importing goods produced wholly or partly by forced or compulsory labour, as set out in federal reporting on fighting forced labour.

The prohibition covers forced or compulsory child labour. It applies to goods regardless of their country of origin, so a supplier cannot rely on where an item was made to avoid the requirement.

Use across other federal departments

Federal organizations that use PSPC procurement tools or adopt the federal procurement framework can have goods contracts that contain these requirements. Employment and Social Development Canada (ESDC), for example, reports that its procurement practices integrate the Directive on the Management of Procurement, human-rights and supply-chain-transparency principles, and PSPC's Code of Conduct for Procurement. Its 2024 supply chains report sets this out.

What forced labour means for a supplier bidding on Canadian public contracts

A supplier must make sure the goods it supplies, and the subcontracted supply chain behind them, comply with applicable law and do not involve prohibited forced or compulsory labour. Non-compliance can expose the supplier to contractual remedies, including termination.

• Expect anti-forced-labour clauses in goods contracts administered by PSPC.
• Check subcontractors and upstream sources, since the Code of Conduct reaches them as well as the prime vendor.
• Treat standing offers and supply arrangements as exposed too, because they can be set aside, suspended or cancelled.
• Do not rely on country of origin, as the prohibition applies to goods from any country.
• Keep supply-chain records current so you can respond if credible information about your goods is raised.