By Terrance S. Carter & Adriel N. Clayton

Department of Finance Proposes New Requirements for Reproductive Service Charities

On October 29, 2024, the Department of Finance (“Finance”) released a backgrounder titled Protecting reproductive freedom by preventing abuse of charitable status (the “Backgrounder”). The Backgrounder, published along with a News Release the same day, discusses an ongoing agenda topic for Canada’s current ruling Liberal government: the concern that reproductive health charities with anti-abortion/pro-life views (or “anti-choice”, according to the Backgrounder) may be spreading misinformation about reproductive care available during pregnancy. The Backgrounder is indicative of a broader issue concerning the possible politicization of charitable status, and the potential harm that this could bring to the charitable sector, and civil society as a whole in Canada. We last reported on this issue in the May 2024 Charity & NFP Law Update.

The Backgrounder states that the federal government is proposing amendments to the Income Tax Act to require charities offering reproductive health services to explicitly disclose any limitations in services, including if they do not provide abortion or birth control. This information would need to appear in both public communications and in annual information returns available through the Canada Revenue Agency’s website. The specifics of the proposed disclosure requirements that would apply to registered charities are as follows:

“If it does not provide abortion services, it must disclose that it does not provide abortion services;

If it does not provide abortion services and it does not provide information on abortion services, it must further disclose that it does not provide information on how to obtain such services;

If it does not provide abortion services and it does not provide the contact information for a provider of such services, it must further disclose that it does not provide the contact information for a provider of such services;

If it does not provide birth control services or does not provide a range of birth control services, it must disclose whichever case applies;

If it does not provide birth control services or does not provide a range of birth control services, it must further disclose if it does not provide information on how to obtain a range of birth control services; and,

If it does not provide birth control services or does not provide a range of birth control services, it must further disclose if it does not provide the contact information for a provider of a range of birth control services or providers that collectively provide such a range of services.”

The Backgrounder defines “birth control services” as referring to medications, devices, or procedures that prevent conception and are recognized in Canada. Further, the Backgrounder states that the amendments  would classify “public communication” broadly, encompassing advertisements, social media posts, websites, and any other communication directed at the public about the charity’s services or information related to pregnancy. This definition would include physical ads like posters, billboards, and bus ads, as well as digital platforms.

The Backgrounder states that if a charity does not comply with these disclosure requirements, the Minister of National Revenue would have the authority to revoke its registration status.  If passed, the amendments to the ITA would take effect 90 days after Royal Assent, with the disclosure obligations beginning in the 2025 taxation year.

Public Safety Canada Releases First Supply Chains Act Report

Public Safety Canada published its initial annual report (the “Report”) on the first year of reporting under the Fighting Against Forced Labour and Child Labour in Supply Chains Act (the “Supply Chains Act”) on September 27, 2024. As mentioned in the May 2023 and January 2024 Legislation Updates, the Supply Chains Act was brought into force on January 1, 2024, after Bill S-211, the Fighting Against Forced Labour and Child Labour in Supply Chains Act received Royal assent the year before on May 11, 2023.

By way of background, the Supply Chains Act reinforces Canada’s global stance against forced and child labour by mandating annual reporting obligations for government institutions and large Canadian organizations (referred to in the Report as “entities”). Required reports cover an organization’s structure, supply chains, policies, risk management, employee training, and remediation efforts. These reports are intended to foster transparency and accountability, as they are made publicly available through Public Safety Canada.

Public Safety Canada received 6,303 reports under the Supply Chains Act by July 31, 2024, including 145 from government institutions and 5,650 from entities. Of these, 2,086 were joint reports, and 135 were revisions. A searchable online catalogue publishes most submissions, excluding those failing quality checks. Notably, 796 entities are also bound by international supply chain laws, with 66% reporting under the UK’s Modern Slavery Act. Reporting sectors span manufacturing, wholesale, and retail, with the majority headquartered in Canada (82%).

Public Safety Canada’s report highlights that 17% of government institutions and 38% of entities identified forced or child labour risks in their supply chains, especially in areas involving raw materials, direct suppliers, or high-risk sectors like electronics and food services. Many entities cited challenges in visibility for indirect suppliers, particularly regarding migrant workers vulnerable to exploitation. Reporting efforts help these organizations address and manage identified risks by implementing practices such as due diligence, improved supplier oversight, and adopting codes of conduct.

Government institutions and entities under the Supply Chains Act have taken several steps to manage forced and child labour risks. Key measures include internal risk assessments, due diligence policies, supplier codes of conduct, and employee training, especially for purchasing decision-makers. That said, Public Safety Canada reported that only a small percentage of government institutions (2.1%) and entities (4%) implemented remediation measures to address forced or child labour issues. Remedial actions included reimbursing recruitment fees, establishing grievance mechanisms, and supporting workforce reintegration.

The Supply Chains Act outlines penalties for non-compliance, including fines up to $250,000 for obstructing officials, failing to submit reports, or ignoring ministerial orders. In 2024, the Act's enforcement focused on increasing awareness rather than punitive action, aiming to encourage transparency and proactive compliance from entities. No compliance orders under section 18 were issued, and no charges were filed under section 19.

Though the monetary threshold to be considered an entity under the Supply Chains Act is significant, some large charities and not-for-profits (NFPs) could be caught under that definition, and required to file reports. It is important  that large organizations understand if the Supply Chains Act applies to them, and what is included in their subsequent obligations.

Amendment to Workplace Safety and Insurance Act will Affect Temporary Employment Agencies

A recent amendment to Ontario’s Workplace Safety and Insurance Act, 1997 creates a new classification for Temporary Employment Agencies (“TEAs”), which may be used by certain charities and NFPs, effective January 1, 2025. Classification 001281 allows TEAs to report administrative, clerical, and knowledge-based labour under Class L, with a premium rate of $0.20 per $100 of insurable earnings, reflecting the low injury risk of these roles. Previously, TEAs calculated premiums based on clients’ classifications, often leading to higher rates even for low-risk jobs.

The classification covers roles such as IT services, human resources, and research, streamlining premium reporting for TEAs across diverse sectors. TEAs will continue using client classifications for labour outside this new category. The Workplace Safety and Insurance Board (WSIB) has provided advance guidance on the policy to support a smooth transition to the new system, offering TEAs a simplified approach to managing premium-setting for applicable roles. This adjustment is expected to reduce administrative costs and align premiums with actual workplace risks, particularly benefiting TEAs supplying workers across multiple industries.

​Read the October 2024 Charity & NFP Law Update