The modern slavery bill set to reshape New Zealand

A group of leading human rights advocates have released an important report 'Building Consensus: A comprehensive Framework for Combating Trafficking in Persons and Modern Slavery in New Zealand.' The report introduces the Combatting Trafficking in Person and Modern Forms of Slavery Bill (Modern Slavery Bill).

The Bill is an important step to overcome stalled progress on modern slavery legislation in New Zealand. If successful, the legislation will establish a comprehensive legal framework to combat trafficking in persons and broader forms of modern slavery, aligning with international standards including a framework for modern slavery reporting for certain New Zealand entities.

The Bill has been proposed by leveraging a 2023 amendment to the Standing Orders of the House of Representatives that allows non-executive bills with majority support (61 endorsements by non-executive members) to bypass the ballot and go directly to first reading. The intention is for it to be introduced as a bipartisan private member's bill to go through a select committee process enabling thorough consultation.

Key provisions of the Bill include mandatory reporting requirements for reporting entities to disclose their methods of identifying, addressing, mitigating, and remediating risks of trafficking and modern slavery within their operations and supply chains. Additionally, the Bill proposes the establishment of an Independent Anti-Slavery Commissioner.

 

Current modern slavery landscape in New Zealand

Modern slavery is an umbrella term used to describe severe exploitation of people for personal or commercial gain and includes slavery, forced labour, trafficking, forced marriage, debt bondage and the worst forms of child labour.

Latest estimates indicate there are 50 million people globally subjected to some form of modern slavery with this number increasing annually. On any one day there are estimated to be 27.6 million people in situations of forced labour, with more that 3.3 million of those being children. In New Zealand there are an estimated 8,000 people enslaved. In 2023 a review by World Vision estimated kiwi households spend an average of USD77 weekly on goods likely to be made through child labour and /or forced labour. Our neighbouring countries account for 55% of all people enslaved with an estimate of 15.1 million people in Asia and the Pacific region being enslaved.

It is estimated that USD236 billion per year is generated in the global private economy from forced labour alone. In short, exploiting people is profitable business. Unless businesses take steps to address modern slavery in their business operations and supply chains, the rate of modern slavery will continue to increase.

The corporate responsibility to respect human rights is a core component of the UN Guiding Principles on Business and Human Rights (UNGPs), the basis of modern slavery frameworks around the world including in Canada, Australia, UK, Germany, France, California and the EU. New Zealand is regularly criticised for falling behind international standards risking important business opportunities such as through the NZ-UK and NZ-EU Free Trade Agreements that underscore modern slavery legislation is needed.

In 2022 the Ministry of Business, Innovation and Employment undertook a public consultation on modern slavery legislation and legislation was proposed by Labour at the end of their term. The National Government criticised Labour's lack of movement on modern slavery legislation supporting legislation in some form. Former National MP Simon O'Connor also lodged a private member's bill aligned with the Australian Modern Slavery Act. However, despite cross party support for legislation and support from the business sector, there has been hesitation to progress legislation with the National coalition recently stating legislation was now not a priority.

The proposed Bill has been drafted as a consensus Bill combining views expressed throughout the public consultation, Labour's proposal, National's understood position and international best practice.

 

Proposed Bill

The Bill enhances New Zealand's ability to combat trafficking in persons and modern slavery. The proposal:

• Mandates private and public entities with revenue exceeding NZD50 million to report via a modern slavery statement on how they identify, address, mitigate and remediate risks of trafficking in persons and broader forms of modern slavery within their operations and supply chains. A clause relating to high-risk entities allows for threshold adjustment for businesses operating in high-risk sectors.
• Establishes an Independent Anti-Slavery Commissioner to monitor progress and provide accountability.
• Strengthens legal provisions related to trafficking in persons (updates to s98B and 98D of the Crimes Act) to align with the Palermo Protocol. In particular, the Bill would resolve a particular issue in prosecuting child trafficking cases so that the 'means' element for children is removed reflecting the vulnerability of children.
• Enhances victim protection and support.
• Creates penalties for non-compliance.

Consistent with other jurisdictions, it is proposed that a government-operated, publicly accessible register is created for reporting entities modern slavery statements, enhancing transparency and accountability. Once legislated, there should be a full review of the Act every three years to evaluate effectiveness and ensure alignment with evolving international standards.

It is anticipated there will be a through consultation as part of the Select Committee process. Consultation on the Bill should require engagement with survivors to ensure survivor-informed perspectives and expertise are incorporated as well as engagement with iwi to ensure Te Tiriti o Waitangi and a Te Ao Māori perspective are fully integrated. The proposal is pragmatic and drafted to reflect consensus on modern slavery policy taking into consideration international standards, Labour's previous proposal, National's private members bill and findings from the public consultation on modern slavery undertaken by MBIE in 2022.

Legislation in other jurisdictions

Aligning with the UNGPs, a growing number of countries are adopting modern slavery legislation. Last year Canada joined the UK, Australia (Commonwealth and New South Wales), California, France, Germany, Norway and the Netherlands in legislating against modern slavery. The EU Corporate Sustainability Due Diligence Directive came into force this year requiring in scope companies to identify and address adverse human rights and environmental impacts of their actions inside and outside Europe. Other countries such as Japan and Thailand have directives and notifications for businesses that align with the UNGPs.

The proposed Bill looks to align with international best practice with the report providing comparison with existing legislation in other jurisdictions. Many New Zealand companies are already reporting on their business operations and supply chains in other countries with 238 New Zealand headquartered companies reporting in Australia last year.

In 2023, a review was undertaken of the Australian Modern Slavery Act (Commonwealth Act). 30 recommendations were made to enhance the legislation. The Australian Government recently responded to the review agreeing in full, in part or in-principle with 25 of the 30 recommendations. While mandatory due diligence and imposing penalties for non-compliance with the Act have not been adopted, the Government has committed to consultations with stakeholders on these points. The proposed reporting threshold change (from AUD100 million to AUD50 million) was not accepted. The first Australian Anti-Slavery Commissioner, Chris Evans, began his five-year term on 2 December 2024.