Modern Slavery Bill

Modern Slavery Bill EXPLANATORY NOTE GENERAL POLICY STATEMENT This Bill is jointly sponsored by two members in accordance with Standing Order 277(1). The Bill’s purpose is to implement a statutory framework to strengthen and coordinate actions to combat modern slavery. This Bill requires reporting entities to report on how they identify, address, mitigate, and remediate incidents of modern slavery (including trafficking in persons) within their operations and supply chains. It creates offences for failing to meet the reporting requirements. The Bill requires the Minister to report annually on progress towards combatting modern slavery and to issue guidance on reporting suspected incidents of modern slavery, processes that government agencies should follow in response, and the assistance available for victims. The Minister may also direct the Chief Human Rights Commissioner to designate modern slavery as a priority area for the Human Rights Commission. In addition, the Bill requires regular legislation and policy reviews to include mandatory consideration of the adequacy of support for victims and the establishment of a specialist body or person responsible for leading work to combat modern slavery, such as an independent Anti-Slavery Commissioner. CLAUSE BY CLAUSE ANALYSIS Clause 1 is the title clause. Clause 2 is the commencement clause. It provides for the Bill to come into force 6 months after Royal assent. Part 1 provides for preliminary matters, including the purpose of the Bill and setting out the meanings of a number of terms used in the Bill. Part 2 sets out reporting entities’ obligations to prepare and publish modern slavery statements on their websites, and submit them for publication on a register. A Registrar must be appointed to establish and maintain a register for modern slavery statements. Clause 14 provides that the Registrar must prepare and publish a report each financial year collating the details of modern slavery incidents that are reported in modern slavery statements for that year, as well as any known or anticipated risks of modern slavery occurring that the Registrar considers should be included in the report. Clause 16 provides that a reporting entity will be liable to a fine not exceeding $200,000 for failing to meet reporting requirements. Information in respect of convictions or pecuniary penalty orders must be published on the register for a period of 3 years. Part 3 provides that the Minister must produce and present a report to the House of Representatives annually, on behalf of the Government, containing information about referrals, investigations, and prosecutions in relation to modern slavery incidents, the number of people certified as victims of trafficking, and the support those victims have been granted. The Minister must also issue guidance on how referrals may be made to government agencies in relation to concerns regarding suspected modern slavery incidents, appropriate processes for agencies to follow in response, and the services and assistance that victims of modern slavery may be able to access. Clause 23 provides that the Minister may direct the Chief Human Rights Commissioner to designate modern slavery as a priority area for the Human Rights Commission. Part 4 provides for regulation-making powers and for regular reviews of the Act. It also provides for regular reviews of legislation, government policy, and other arrangements in place to support victims of modern slavery, including consideration of the establishment of an independent Anti-Slavery Commissioner. Part 5 amends the Public Finance Act 1989 to provide that the Crown must not pay money to an entity that has been convicted of an offence or ordered to pay a pecuniary penalty under this Bill. The Parliament of New Zealand enacts as follows: 1 Title This Act is the Modern Slavery Act 2026 . 2 Commencement This Act comes into force 6 months after Royal assent. 3 Purpose of this Act The purpose of this Act is to establish a statutory framework that— a reduces the risk of modern slavery incidents occurring by requiring reporting entities (as that term is defined in section 7 ) to report on their actions to identify, prevent, mitigate, and remediate modern slavery incidents occurring within their operations and supply chains, thereby encouraging reporting entities to undertake due diligence; and b increases public awareness and support for victims of modern slavery. To this end, the Act— a provides for annual modern slavery statements from reporting entities to be published on a register: b creates offences for failing to publish a modern slavery statement or for failing to include the required information in a statement: c provides for regular reviews of the effectiveness and appropriateness of laws prohibiting modern slavery, the adequacy of government policies, and other arrangements in place to support victims of modern slavery: d requires consideration to be given to establishing a specialist person or body responsible for promoting and leading work to combat modern slavery, whether an independent commissioner or a commissioner sitting within the Human Rights Commission: e amends the Public Finance Act 1989 to prevent public money being paid to reporting entities that are listed on the register for having contravened reporting requirements. 4 Interpretation In this Act, unless the context otherwise requires,— due diligence , in relation to modern slavery, means the ongoing and systematic process by which an entity identifies, assesses, prevents, mitigates, and accounts for risks of modern slavery incidents within its operations and supply chains, including taking reasonable steps to remediate any adverse impacts on victims that the entity has caused or contributed to entity includes— a a company, an overseas company, or any other body corporate: b a corporation sole: c a trust, partnership, or an association of persons, whether incorporated or not: d a society or branch of a society registered or deemed to be registered under the Friendly Societies and Credit Unions Act 1982: e the Crown, a department, or an Office of Parliament (within the meaning of those terms in section 2(1) of the Public Finance Act 1989) or an organisation named or described in Schedule 4 of that Act: f a Crown entity (within the meaning of section 7(1) of the Crown Entities Act 2004): g a local authority (within the meaning of section 5(1) of the Local Government Act 2002 forced or exploitative labour means— a work or service which— i is exacted from a person under the threat of harm (including to another person); or ii is provided in circumstances where a person reasonably believes that they or another person are likely to suffer harm if they fail to provide, or offer to provide, the work or service; or iii involves a serious violation of legislation relating to employee rights or health and safety in the workplace; or b if a person is under the age of 18 years or is mentally or physically ill or disabled, work or service which— i involves any or all of the conduct described in paragraph (a) ; or ii the person is likely to have refused to perform if the person was aged 18 years or over or did not have an illness or a disability; or iii by its nature or due to the circumstances in which it is carried out, is likely to harm the health, safety, or morals of the person modern slavery includes conduct that constitutes any of the following: a an offence under section 98, 98AA, 98D, or 207A of the Crimes Act 1961: b conduct that, had it occurred in New Zealand, would constitute an offence listed in paragraph (a) : c the worst forms of child labour under Article 3 of the ILO Convention (No. 182) concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour: d trafficking in persons, as defined in Article 3 of the Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children, supplementing the United Nations Convention against Transnational Organized Crime, done at New York on 15 November 2000: e debt-bondage or serfdom, as those terms are defined in section 98 of the Crimes Act 1961: f forced or exploitative labour: g servitude: h sexual exploitation: i slavery overseas company has the same meaning as in section 2(1) of the Companies Act 1993 servitude means the condition of any person who provides labour or services if— a a reasonable person in the position of that person would not consider themselves to be free— i to cease providing the labour or services; or ii to leave the place or area where they provide the labour or services; and b that person is significantly deprived of personal freedom sexual exploitation means— a conduct that falls under the definition of sexual exploitation in section 98AA of the Crimes Act 1961; or b conduct that involves an actual or attempted abuse of a person’s vulnerability or trust, or abuse of a position of power over a person, for sexual purposes slavery means the status or condition of a person who is used as the property of another person and thereby controlled as if owned by that other person. 5 Act binds the Crown This Act binds the Crown. 6 Interpretation In this Part, unless the context otherwise requires,— authorised person , in relation to a reporting entity, means,— a if the reporting entity is a company, any person occupying the position of a director of the company by whatever name called; or b in any other case, a person occupying a position that is comparable with that of a director of a company consolidated revenue of an entity means— a the total revenue of the entity; or b if the entity controls another entity or entities, the total revenue of the entity and all of the controlled entities considered together control of an entity by another entity means control of the entity within the meaning of generally accepted accounting practice financial year has the meaning given in section 2(1) of the Public Finance Act 1989 generally accepted accounting practice has the same meaning as in section 8 of the Financial Reporting Act 2013 government agency means any of the following: a a public service agency as defined in section 10(a) of the Public Service Act 2020: b a Crown entity specified in Schedule 4 or 4A of the Public Finance Act 1989: c the New Zealand Police: d the New Zealand Defence Force modern slavery incident means an event or occurrence involving modern slavery within an entity’s operations or supply chains modern slavery statement means a statement prepared for the purposes of section 8 New Zealand entity means an entity that— a is established under New Zealand law; or b has its central management and control in New Zealand register means the modern slavery statement register established and maintained under section 11 Registrar means the Registrar appointed under section 12 reporting entity has the meaning given in section 7 reporting period ,— a in relation to a government agency, means a period of 12 months starting on 1 July and ending on 30 June; and b in relation to any other entity, means a period of 12 months starting on 1 April and ending on 31 March threshold revenue amount means— a consolidated revenue of more than $100,000,000 in a reporting period; but b if a different amount is prescribed for the threshold revenue in regulations made under section 24 , that prescribed amount total revenue means all income classified as revenue by the applicable financial reporting standard (within the meaning of section 5(1) of the Financial Reporting Act 2013). 7 Meaning of reporting entity A reporting entity , for the purposes of this Part, is an entity that has a consolidated revenue in a reporting period that meets or exceeds the threshold revenue amount, and at any time in the reporting period the entity was— a a New Zealand entity; or b an overseas company that carried on business in New Zealand. The following entities are also reporting entities: a an entity that controls, directly or indirectly, an entity that meets the criteria outlined in subsection (1) : b a prescribed entity. 8 Reporting entity to prepare modern slavery statement A reporting entity must— a prepare a modern slavery statement that complies with section 9 in respect of each reporting period; and b submit a copy of the modern slavery statement to the Registrar no later than 6 months after the end of the reporting period to which it relates. A reporting entity that contravenes subsection (1) commits an offence under section 16 or is liable to a pecuniary penalty under section 18 . Subsection (2) does not apply to a reporting entity that is a government agency. 9 Contents of modern slavery statement A modern slavery statement must be in the prescribed form (if any) and be signed by an authorised person. A modern slavery statement must include the following information: a the name of the reporting entity to which it relates and a description of the structure, operations, and supply chains of the reporting entity (both domestic and international), including any entities owned or controlled by the reporting entity: b a description of any modern slavery incident that has occurred within the operations and supply chains of the reporting entity and any entities owned or controlled by the reporting entity: c a description of any known or anticipated risks of modern slavery occurring within the operations and supply chains of the reporting entity and any entities owned or controlled by the reporting entity: d a description of the actions taken by the reporting entity, and any entity that the reporting entity owns or controls, to assess, prevent, address, mitigate, and remediate modern slavery and risks of modern slavery occurring, including due diligence and remediation processes: e details of— i the number of complaints made to the reporting entity in relation to modern slavery; and ii any measures taken to investigate such complaints and to provide remediation for any incidents of modern slavery identified within the operations and supply chains of the reporting entity: f a description of how the reporting entity assesses the effectiveness of actions taken under paragraphs (d) and (e) , and how any related processes or policies are being continually improved: g a description of any training that the reporting entity provides to the following in relation to identifying modern slavery: i the entity’s employees, including the employees of any entities owned or controlled by the reporting entity; and ii the employees of any other entity that is in the reporting entity’s supply chain: h a description of any consultation undertaken by the reporting entity with the individuals listed in paragraph (g)(i) and (ii) : i any prescribed information. 10 Reporting entity must publish modern slavery statements A reporting entity must publish a copy of each of its modern slavery statements by making them available for public inspection, free of charge, on an internet site maintained by the entity. The version of the modern slavery statement published by the reporting entity must— a be identical to the version submitted to the Registrar; and b remain on the website until it is replaced by the following year’s statement. A reporting entity that contravenes subsection (1) or (2) commits an offence under section 16 or is liable to a pecuniary penalty under section 18 . Subsection (3) does not apply to a reporting entity that is a government agency. 11 Modern slavery statement register A register called the modern slavery statement register is established. The register must be an electronic register. The register must— a allow for the submission of modern slavery statements through an online portal; and b be freely available to view; and c provide the option to download modern slavery statements in full. The register must be operated at all times unless— a the Registrar suspends the operation of the register, in whole or in part, under subsection (5) ; or b otherwise provided in regulations. The Registrar may refuse access to the register or otherwise suspend the operation of the register, in whole or in part, if the Registrar considers that it is not practical to provide access to the register. 12 Registrar of modern slavery statements The chief executive of the department must appoint an employee of the department to be the Registrar of modern slavery statements. The appointment may be held separately or in conjunction with any other office in the department. 13 Functions of Registrar The functions of the Registrar are to— a facilitate the submission of modern slavery statements, including by providing an optional template to assist reporting entities in preparing and submitting their modern slavery statement: b regularly update the register with all submitted modern slavery statements: c issue guidance to facilitate compliance with reporting obligations under this Part: d prepare and publish modern slavery reports in accordance with sections 14 and 15 . 14 Modern slavery reports The Registrar must, as soon as reasonably practicable after each financial year, prepare a modern slavery report in respect of that financial year. The report under subsection (1) must include details, collated from the modern slavery statements submitted to the Registrar in the relevant financial year, of— a every incident of modern slavery that has occurred; and b any known or anticipated risks of modern slavery occurring within the operations and supply chains of a reporting entity that the Registrar considers should be included in the report; and c aggregated compliance statistics with identification of any sector-specific risk patterns. 15 Publication and presentation requirements As soon as practicable after a report is prepared in accordance with section 14 , the Registrar must— a give a copy of the report to the Minister; and b publish the report on an internet site maintained by or on behalf of the department. As soon as practicable after receiving a report under subsection (1) , the Minister must present a copy of that report to the House of Representatives. 16 Offences A reporting entity that fails to comply with section 8(1) or section 10(1) or (2) commits an offence and is liable on conviction to a fine not exceeding $200,000. Every person that knowingly makes a false or misleading statement or knowingly provides false or misleading information in a modern slavery statement commits an offence and is liable on conviction to a fine not exceeding $200,000. 17 Liability of directors or other persons involved in the management of reporting entities If a reporting entity is convicted of an offence against this Act, a director of the reporting entity (if any) or a person involved in the management of the reporting entity is guilty of the same offence if it is proved— a that the act or omission that constituted the offence took place with the director or person’s authority, permission, or consent; or b that the director or person knew, or could reasonably be expected to have known, that the offence was to be or was being committed and failed to take all reasonable steps to prevent or stop it. 18 Pecuniary penalties The High Court may, on an application by the chief executive of the department, order a reporting entity that is not a government agency to pay a pecuniary penalty to the Crown if the court is satisfied that the reporting entity has contravened section 8(1) or section 10(1) or (2) . The maximum amount of the pecuniary penalty for a contravention of section 8(1) or section 10(1) or (2) is $600,000. In determining whether to make an order, and the amount of any pecuniary penalty to be paid, the court must have regard to the following matters: a the extent to which the reporting entity’s conduct undermines the purpose of this Act: b whether the reporting entity’s conduct was intentional or reckless: c the circumstances of the reporting entity’s conduct: d whether the reporting entity has previously engaged in similar conduct: e any other matters the court considers relevant. A proceeding under this section is a civil proceeding and the usual rules of court and rules of evidence and procedure for a civil proceeding apply (including the standard of proof). If the court orders a reporting entity to pay a pecuniary penalty, the court must also order that the penalty be applied first to pay the department’s actual costs in making and continuing the department’s application for an order. 19 Mandatory reporting of convictions and penalty orders If a reporting entity is convicted of an offence under section 16 or is the subject of a pecuniary penalty order made under section 18 , the registrar of the relevant court must, within 7 days of the conviction or order being made, report the conviction or order to the Registrar. If a court registrar has reported a conviction or order to the Registrar under subsection (1) , then, if that conviction or order is subsequently quashed, the registrar must promptly notify the Registrar of that fact. 20 Publication of conviction or pecuniary penalty details on register On receiving a report under section 19 , the Registrar must publish the following information in a dedicated section of the register: a the name of the reporting entity convicted or subject to an order; and b a description of the offence or contravention that led to the order; and c the penalty imposed. The published information must remain accessible on the register for a period of 3 years. 21 Minister to report annually on modern slavery matters The Minister must monitor compliance with this Act and report, on an annual basis, on progress towards combatting modern slavery. A report produced under subsection (1) must include the following information in respect of the relevant year: a the number of referrals of suspected victims of modern slavery to government agencies: b the number of criminal investigations initiated in relation to modern slavery incidents: c the number of prosecutions for modern slavery offences and their outcomes: d the number of individuals certified as victims of trafficking by the New Zealand Police: e the number of victims of trafficking who were granted any or all of the following: i publicly funded health services: ii welfare assistance: iii immigration support, including any of the following: A a special work visa for victims of trafficking: B a residence category visa for victims of trafficking: C a child victim of trafficking visa. The Minister must present the report to the House of Representatives as soon as practicable after it has been completed. 22 Minister to publish guidance on responding to modern slavery The Minister must issue guidance on— a how members of the public may make referrals to government agencies in relation to concerns regarding suspected modern slavery incidents; and b appropriate processes for government agencies to follow in response to referrals; and c the services and assistance that victims of modern slavery may be able to access. Guidance issued under subsection (1) must be published on an internet site maintained by or on behalf of the department. 23 Minister may direct Chief Human Rights Commissioner to designate modern slavery as priority area The Minister may direct the Chief Human Rights Commissioner to designate modern slavery as a priority area under section 8(1B) of the Human Rights Act 1993. The Chief Human Rights Commissioner must give effect to a direction under subsection (1) and must, accordingly, appoint a Human Rights Commissioner to lead the work of the Commission on modern slavery. Before giving a direction under subsection (1) , the Minister must consult with the Minister of Justice and the Chief Human Rights Commissioner. This section applies despite anything to the contrary in the Crown Entities Act or the Human Rights Act 1993. 24 Regulations The Governor-General may, by Order in Council, on the recommendation of the Minister, make regulations for all or any of the following purposes: a providing for anything this Act says may or must be provided for by regulations: b prescribing forms to assist reporting entities to meet their reporting requirements under Part 2 : c prescribing an applicable threshold revenue amount: d prescribing entities to be reporting entities under section 7(2)(b) : e prescribing the information that must be included in a modern slavery statement: f providing for anything incidental that is necessary for carrying out, or giving full effect to, this Act. Before recommending regulations be made under subclause (1)(c) , the Minister must take into account— a the level of risk of modern slavery incidents occurring within the operations and supply chains of an entity; and b the extent to which that risk may be increased by economic or commercial developments both domestically and internationally. Regulations made under this section are secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). 25 Review of Act The Minister must, at least once every 5 years, review the operation and effectiveness of this Act. The first review must be completed no later than 3 years after the commencement of this Act. The Minister must ensure that during the review there is opportunity for public consultation, including with appropriate people and organisations. The Minister must prepare a report of the review and present it to the House of Representatives as soon as practicable after it has been completed. 26 Periodic review of legislation, government policy, and other arrangements The Minister must, as soon as is practicable after the expiry of 3 years beginning on the commencement of this Act, and then at intervals of not more than 3 years, report to the House of Representatives on the following matters: a whether existing legislation, government policy, and other arrangements ensure that— i the needs of victims of modern slavery are adequately met; and ii persons best placed to identify and provide assistance to victims of modern slavery (such as police officers, social workers, and employees of relevant government agencies and non-government entities) are adequately supported to do so: b whether any amendments to legislation, government policy, or other arrangements are necessary or desirable: c if the Minister has not issued a direction under section 23 , whether a specialist person or body, such as an independent Anti-Slavery Commissioner, ought to be established or appointed for the purposes of— i promoting good practice in the prevention, detection, investigation, and prosecution of modern slavery: ii advocating for the rights of victims of modern slavery: iii monitoring government compliance with New Zealand’s relevant international obligations: iv identifying, assessing, and declaring high-risk industries, products, or regions for the purposes of recommending targeted guidance and enhanced due diligence requirements for reporting entities. 27 Principal Act This Part amends the Public Finance Act 1989. 28 New section 73A inserted (No payment to entities that have contravened Modern Slavery Act 2026 ) After section 73, insert: 73A No payment to entities that have contravened Modern Slavery Act 2026 1 Except as expressly authorised by any Act, the Crown must not pay money (directly or indirectly) to an entity that has been convicted of an offence against, or in respect of which a pecuniary penalty has been imposed for contravention of, section 8(1) or section 10(1) or (2) of the Modern Slavery Act 2026 . 2 The Crown must take all reasonable precautions and exercise due diligence to avoid acting contrary to subsection (1) . 29 Section 76 amended (Offences) After section 76(2)(b), insert: ba pays or makes available, or causes to be paid or made available, directly or indirectly, without reasonable excuse, any money, either to, or for the benefit of, an entity, knowing that the entity has been convicted of an offence against, or in respect of which a pecuniary penalty has been imposed for contravention of, section 8(1) or section 10(1) or (2) of the Modern Slavery Act 2026 ; or