A bipartisan Modern Slavery Bill — backed by both National and Labour — has passed its first reading in Parliament, and with strong cross-party support, the intention is for it to become law before the election.
The Bill, co-sponsored by National’s Greg Fleming and Labour’s Camilla Belich, would require large businesses to report publicly on how they identify and manage modern slavery risks in their operations and supply chains.
What does the Bill actually require?
Under the Bill, businesses above the threshold would be required to prepare and publish an annual modern slavery statement, lodged on a public register. That statement must cover:
- Their structure, operations and supply chains
- Any modern slavery incidents identified
- Known or anticipated risks, and what they’re doing to address them
- Any complaints received and steps taken
- Training provided to staff
Non-compliance carries serious consequences: fines of up to $200,000, and directors and senior managers can be held personally liable.
Who will it affect right now?
The current bill targets businesses with annual revenue of $100 million or more — so the majority of our hospitality businesses won’t have direct reporting obligations under it. BUT it’s widely seen as a first step. Advocates are already pushing for the threshold to be lowered, and previous proposals set it as low as $20 million. The direction of travel internationally has been toward wider coverage, not narrower.
Larger organisations that are captured by the bill will need to assess their supply chains. So it will potentially have an indirect impact on hospitality. Larger organisations may start asking questions of:
- Suppliers
- Contractors
- Franchisees
- Smaller business partners
And businesses could see:
- Supplier questionnaires
- Contractual warranties about employment practices
- Requests for confirmation of compliance with employment law
What does “modern slavery” mean?
It’s a broad term covering forced labour, debt bondage, trafficking, and other forms of exploitation. While these are already crimes in New Zealand, there are currently no legal requirements around transparency or reporting in the private sector. This bill would change that for larger entities — requiring them to prepare and publish an annual modern slavery statement covering their structure, supply chains, any incidents, and what they’re doing about them.
Our position
We’ve long supported the principle that workers — in hospitality and across every sector — deserve to be treated fairly and with dignity. Our submission on earlier modern slavery proposals, supported this. Our focus was on making sure any framework is workable for small businesses, with proper support and phase-in periods rather than a compliance burden dropped overnight.
The bill still has to go through Select Committee, where public submissions will be invited and changes may be made. We’ll be watching the process closely and will keep members up to date. For now, the key thing is being aware that this legislation is coming — and that the threshold may not stay where it is.
More information:
- Modern Slavery Bill
- Restaurant Association submission (2022) – Modern Slavery and Worker Exploitation