In an unprecedented use of the members' bill process, National and Labour MPs have united to introduce a new Modern Slavery Bill (Bill) to Parliament, which would require certain organisations to report on how they identify, address, mitigate and remediate incidents of modern slavery (including human trafficking) within their operations and supply chains.
The cross-party approach to the introduction of the Bill means that it is increasingly likely that a modern slavery reporting framework will be passed into New Zealand law. This means that many organisations will need to add mandatory modern slavery reporting to their suite of annual reporting documents. The legislative process accordingly represents an important opportunity to influence the regulatory settings, with "lessons learnt" from the recent implementation of mandatory climate-related disclosures likely to be front of mind.
The Bill also represents an important milestone in the use of cross-party consensus building to bypass the usual ballot process for members' bills. While National's Greg Fleming and Labour's Camilla Belich had previously each introduced individual members' bills proposing modern slavery reform, they have subsequently joined forces to promulgate a co-sponsored Bill. Accordingly, the Bill's support across both major parties means that it will bypass the ballot process and be introduced to Parliament on the next sitting day (10 February 2026). This is the first time a member's bill has secured sufficient support to trigger this process.
In this update, we outline some of the key features of the Bill, before highlighting some key considerations that organisations may wish to have in mind as the Bill progresses through the Parliamentary process.
Overview of approach in the Bill
Following the general approach proposed in previous iterations of draft modern slavery legislation in New Zealand, the Bill is primarily focused on disclosure obligations through the publication of an annual modern slavery statement, rather than creating new substantive requirements (the Crimes Act 1961 provides for various modern slavery-related offences, with amendments to broaden their scope currently being proposed by the Crimes Amendment Bill). The proposed regime does not impose a direct obligation on organisations to undertake due diligence in their supply chains, although a purpose of the Bill is to encourage that due diligence.
Entities captured by the Bill's reporting requirements are public and private entities with consolidated revenue of $100m or more in an annual reporting period. This includes both New Zealand entities and overseas companies carrying on business in New Zealand. This threshold is double the earlier version of a Modern Slavery Bill promulgated by National MP Greg Fleming of $50 million (see our previous article) and extends to significantly more entities than the climate‑related disclosures framework, which was originally limited to most listed issuers and financial institutions, but is undergoing reform that will limit it to an even smaller group of entities (see our update).
Content of the modern slavery statement
In relation to reporting, the Bill proposes to require reporting entities to prepare an annual modern slavery statement, with information required about:
- their structure, operations and supply chains;
- any modern slavery incidents and any known or anticipated risks within its operations and supply chains (including those of entities it owns or controls);
- the actions taken to assess, prevent, address, mitigate, and remediate those risks and incidents;
- the number of modern slavery complaints received and how they were investigated and remedied;
- how the entity evaluates the effectiveness of its actions and improves related processes; and
- any training and consultation undertaken with employees and entities in its supply chain on identifying modern slavery.
The Bill provides for regulation-making powers, including to change the reporting revenue threshold amount and prescribe information that must be included in modern slavery statements.
The modern slavery statement will be required to be published on a specific register, and a Registrar will be appointed to oversee that register. The Registrar will also be required to prepare a modern slavery report in respect of each financial year, which collates information from the modern slavery statements submitted about incidents of modern slavery and certain information relating to modern slavery risks.
Liability and penalties under the Bill
Entities that fail to comply with reporting requirements or provide false or misleading information in a modern slavery statement would face potential civil and criminal liability, with potential civil penalties of up to $600,000 and (in addition) criminal fines of up to $200,000. In addition, failing to comply with the requirement to prepare and publish a modern slavery statement or knowingly providing false or misleading information in a modern slavery statement would be offences, with criminal fines up to $200,000 for each offence. Where an entity is convicted of an offence, individuals involved in the management of the entity (including directors) would also face criminal liability if they:
- authorised, permitted or consented to the act or omission constituting the offence; or
- knew, or could reasonably be expected to have known, that the offence was to be or was being committed, in which case a defence would be available if the person took "all reasonable steps" to prevent or stop the offence.
Other proposed changes
Outside of reporting by organisations, the Bill would also impose a number of obligations on the responsible Minister in relation to modern slavery, including requirements to report on incidents, issue guidance to Government agencies, and conduct legislative and policy reviews.
How businesses can prepare for modern slavery reporting
Given the cross-party consensus achieved through the members' bill process, organisations should proceed on the assumption that it is likely a modern slavery regime will be introduced, although there will still be an opportunity for public submissions at the Select Committee stage. For organisations that are likely to be affected, now is a good time to think about putting in place modern slavery processes (see our earlier update).
Reporting entities may wish to think now about how they would go about practically implementing the regime, so that they can meaningfully engage with the Select Committee process should the Bill get to that point. With that in mind, some considerations could include:
- How does the proposed Bill intersect with any modern slavery statement that the organisation is already required to produce in another jurisdiction (e.g. Australia)?
While the Australian regime is very similar to that proposed in New Zealand, in our experience the devil in cross-border compliance can be in the detail. The Government providing for mutual recognition between Australian and New Zealand modern slavery statements could be a potential way through any potential wrinkles in that regard. - What processes would need to be put in place to support compliance and protect the entity, management and directors from potential liability?
Ensuring that there are robust processes in place for the preparation of the modern slavery statement will support compliance, and reduce reputational risk and potential liability. Unlike the climate-related disclosures regime as it was originally enacted, the Bill does not propose to impose automatic liability on directors for non-compliance. However, directors will still need to get comfortable that they are meeting their directors' duties and (as noted) could also have criminal liability in certain limited circumstances. - How would a modern slavery statement intersect with the organisation's existing annual reporting?
While certain New Zealand entities are already producing separate modern slavery statements to comply with Australian requirements, others may be integrating their commentary on modern slavery processes in their annual report or a separate sustainability report. Entities accordingly may wish to consider whether the requirement for a modern slavery statement to be published and lodged on a separate register intersects with their current approach to annual reporting. - How do the reporting thresholds apply to your group structure?
Unlike the Australian regime, the current draft of the New Zealand legislation does not clearly provide for joint modern slavery statements (e.g. where two related companies are reporting entities). Entities with complex group structures should accordingly consider whether the settings currently proposed will result in duplicating efforts across entities.
Considering those matters early will help shape constructive engagement with the Government, contribute to a reporting framework that works in practice and enable a smoother transition for the introduction of reporting. The Bill's co-sponsors hope to pass the Bill before the election on 7 November, and the framework under the Bill is proposed to come into force 6 months after Royal assent.
Please get in touch with your usual Russell McVeagh contact if you would like to discuss the implications of the Bill on your business.