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New Zealand’s long-awaited bill puts tackling modern slavery on a solid legislative footing, but falls short of meeting current global standards.
The latest Global Slavery Index estimates 50 million people globally are living in modern slavery, including 8,000 in New Zealand.
With growing threats across global supply chains, the new Bill reflects mounting urgency to put protections in place.
Following years of stalled progress, the Bill brings New Zealand in line with reporting frameworks already operating in countries such as Australia, the UK and Canada.
It has more robust enforcement mechanisms, with penalties for non-compliance and associated Director liability, but falls short of mandating human rights due diligence.
Serena Grant, Director, Business and Human Rights, Walk Free, said: “This is a pivotal moment and the result of years of advocacy with our partners.
“The proposed law goes further than the Australian and UK models, with the inclusion of penalties and liability for Directors as well as more robust reporting requirements.
“In particular, asking businesses to report on complaints received as well as whether they have found any incidents of modern slavery is crucial.
“This will give investors and other stakeholders more robust data to understand how much action a company is taking to address risks.
“However, like Australia, the New Zealand Modern Slavery Bill relies on annual reporting and falls short of introducing mandatory due diligence.
“The Australian and UK experience has taught us that transparency-based reporting models fall short; we need laws with teeth to see real corporate behaviour change.”
For businesses, the Bill represents both responsibility and opportunity.
Reporting entities will be required to map supply chains, strengthen procurement processes, and publish clear disclosures.
Many New Zealand businesses have already started preparing voluntarily.
They recognise action is essential to maintain competitiveness, safeguard exports, and build trust with consumers and international partners.
The national framework creates clear expectations and greater consistency across the market.
The Australian Modern Slavery Act has remained unchanged since 2018, despite a 2023 statutory review recommending significant changes, including the introduction of due diligence requirements and penalties for non-compliance.
New Zealand’s Bill, even without due diligence obligations, risks outpacing the Australian regime, which has implications for:
New Zealand’s renewed momentum should increase pressure on the Australian Government to strengthen the Modern Slavery Act without further delay.
By taking legislative action, New Zealand is positioning itself as a leader in protecting workers and promoting responsible supply chains.
Australia’s major trading partners (including key trading partners South Korea, Thailand, and Indonesia, as well as Canada, Germany, France, and the European Union) are moving towards mandatory human rights due diligence laws that require companies to act on risks, not just report them.
Australia now faces a clear choice to either align with emerging standards or risk falling behind its peers.
People across both countries can support stronger laws by contacting their representatives and urging urgent, comprehensive reform to combat modern slavery in global supply chains.