Modern slavery and worker exploitation

In Aotearoa New Zealand, we aim to treat people fairly and with dignity.

Modern Slavery and Worker Exploitation are serious forms of exploitation seen internationally and within New Zealand. Addressing these practices requires a whole-of-society response, undertaken through strong partnerships across government agencies and with civil society, businesses, unions, academia and international partners.

What we proposed

Over April and May 2022, we sought feedback on new legislation that aims to achieve freedom, fairness and dignity in the operations and supply chains of entities to address modern slavery and worker exploitation both in New Zealand and internationally.

The proposal would create new responsibilities across the operations and supply chains of all types of organisations in New Zealand, with more responsibilities for larger organisations:

All organisations would be required to take action if they become aware of modern slavery or worker exploitation
Medium and large organisations would be required to disclose the steps they are taking
Large organisations and those with control over New Zealand employers would be required to undertake due diligence.

The primary objective for the proposals is to reduce modern slavery and worker exploitation in New Zealand and elsewhere, helping to build practices based on fairness and respect.

The secondary objectives that support this primary objective are to:

enhance New Zealand’s international reputation as a country that supports human rights and transparency
strengthen New Zealand’s international brand and make it easier for our businesses to continue to trade with the world
support consumers to make more informed choices in relation to modern slavery and worker exploitation risks associated with good and services
drive culture and behaviour changes in entities which lead to more responsible and sustainable practices
level the playing field for entities which act responsibly across their operations and supply chains.

The legislation would only be one part of the picture and it will need to be accompanied by extensive promotion, guidance and support for entities. We need to build a collective understanding of the issues and a long-lasting culture change which encourages collaboration.

Next steps

The Minister for Workplace Relations and Safety recently announced its commitment to address modern slavery by introducing new legislation that requires organisations and businesses to be transparent about their operations and supply chains through a new public register.

You can read the press release at:

Government prescribes daylight disinfectant to modern slavery(external link) — Beehive.govt.nz

What is modern slavery

Modern slavery is severe exploitation that a person cannot leave due to threats, violence or deception. It includes forced labour, debt bondage, forced marriage, slavery, and human trafficking.

Modern slavery and worker exploitation have no place here or overseas. Yet, the International Labour Organization estimates there are 40 million victims of modern slavery in the world, while in New Zealand numerous cases of exploitation have been identified in recent years.

Modern slavery and worker exploitation, whether it occurs here or overseas, negatively impacts us all. Victims and survivors of modern slavery and worker exploitation can face severe physical and emotional harm that can last for the rest of their lives.

The use of modern slavery and worker exploitation in supply chains also creates an environment based on unfair competition, in which exploitative practices can be leveraged to get ahead. While more New Zealanders want to buy from responsible businesses and support responsible entities, it is not always easy to determine which organisations have put effective measures in place. Many are making claims about their practices, but the vast majority of people will not be in a position to verify those claims.

Definition of worker exploitation

Worker exploitation in this proposal includes non-minor breaches of employment standards in New Zealand.

How is New Zealand currently addressing modern slavery and worker exploitation?

The Ministry of Business, Innovation and Employment, alongside other government agencies have worked on an all-of-government plan of action against forced labour, people trafficking and slavery. This sets out a high-level framework for the actions that agencies will take over 5 years to 2025, to combat these practices. You can read more about this work.

Plan of action against forced labour, people trafficking and slavery

Consultation on modern slavery and worker exploitation - now closed

Coercion: The use of force or intimidation to obtain compliance. Section 351 of the Immigration Act 2009 identifies coercive behaviours such as an employer preventing their employees from leaving their employment, leaving New Zealand, finding out or seeking their entitlements under New Zealand law, or telling someone about the circumstances of their employment.
Debt bondage: Defined in the Crimes Act 1961 as the status or condition arising from a pledge by a debtor of his or her personal services, or of the personal services of any person under his or her control, as security for a debt, if the value of those services, as reasonably assessed, is not applied towards the liquidation of the debt or if the length and nature of those services are not limited and defined.
Disclosure: Refers to the development and publication of a statement setting out the due diligence an entity is undertaking.
Due diligence: Simply put, this broadly refers to the process of identifying the risks of exploitation across an entity’s operations and supply chains, taking steps to address any risks identified, and evaluating the steps taken.
Employment standards: The set of minimum standards that employers must comply with under various employment laws. These standards set out certain rights for employees and obligations that employers must meet and include entitlements such as being paid at least the minimum wage; being provided annual leave and holiday pay; and being paid wages that have not had illegal deductions.
Enforcement: This has a broad meaning, but here it means investigations where it is suspected a breach of the law or policy has occurred; and also means the resulting action taken, such as penalising the person or entity that committed the breach.
Entity: Something with its own independent existence, such as a company or charitable entity.
Exploitation: This can be seen generally as behaviour that causes, or increases the risk of, material harm to the economic, social, physical or emotional well-being of a person. Worker exploitation and modern slavery fall within the spectrum of exploitation.
Forced labour: Forced labour is work exacted from a person under threat and for which the person has not offered themselves voluntarily. It can occur in connection with trafficking or through labour exploitation.
Forced marriage: A marriage in which one and/or both parties have not personally expressed their full and free consent to the union. In New Zealand, coerced marriage occurs where a person intends to cause another person to enter into a marriage or civil union through coercion (for example, intimidation, threats or violence), and is punishable by up to five years imprisonment.
Holding company: Generally, this means a body corporate with control over another company. See section 5 of the Companies Act 1993 for more detail.
Legislation / legislative: The whole or a part of an Act (law that has been agreed by Parliament) or any secondary legislation. See also the meaning of ‘regulation’
Liability: The state of being legally responsible for an action or obligation.
Modern slavery: This broadly reflects exploitative situations that a person cannot leave due to threats, violence, coercion, deception, and/or abuse of power. We are proposing that modern slavery be defined as including the legal concepts of forced labour, debt bondage, forced marriage, slavery and slavery like practices, and human trafficking.
Non-compliance: An action that is in breach of standards or obligations set in law.
Operations: All activity undertaken by an entity to pursue its objectives and strategy. We are interpreting ‘operations’ broadly as including all material relationships an entity has which are linked to its activities, including for example: investment and lending activity; material shareholdings; and direct and indirect contractual relationships (such as subcontracting and franchising relationships).
Regulation: Subordinate legislation made under delegated authority of an Act. Regulations usually deal with matters of detail or implementation, technical matters, or those likely to require frequent updating.
People trafficking: In its simplest form, people trafficking (also known as “trafficking in persons” and “human trafficking”) is the recruitment, transportation, transfer, harbouring or receipt of a person, achieved through coercion, deception, or both, for the purpose of the exploitation of the person. Exploitation for the purpose of trafficking can occur in relation to prostitution or other sexual services, slavery, practices similar to slavery, servitude, forced labour or other forced services, and the removal of organs. In New Zealand, people trafficking can be prosecuted without exploitation having actually occurred. Further detail is set out in Appendix One of this discussion document, and in section 98D of the Crimes Act 1961.
Serfdom: Defined in the Crimes Act 1961 as the status or condition of a tenant who is by any law, custom, or agreement bound to live and labour on land belonging to another person and to render some determinate service to that other person, whether for reward or not, and who is not free to change that status or condition.
Slavery: Defined in New Zealand’s Crimes Act 1961 as including, without limitation, a person subject to debt-bondage or serfdom. The Supplementary Convention on the Abolition of Slavery recognises institutions and practices similar to slavery, including debt bondage, serfdom, marriage related and exploitative child labour-related practices.
Subsidiary: A company controlled by a holding or parent company. See section 5 of the Companies Act 1993 for more detail.
Supply chain: The network of organisations that work together to transform raw materials into finished goods and services for consumers. They include all activities, organisations, technology, information, resources and services involved in developing, providing, or commercialising a good or service into the final product for end consumers.
Temporary migrant worker: A migrant who holds a temporary work visa, which provides temporary employment for a migrant in New Zealand.
Worker exploitation: Worker exploitation is defined in this document as including non-minor breaches of New Zealand employment standards. This excludes minor and insignificant breaches that are not constant and easily remedied.

Last updated: 31 July 2023

https://www.mbie.govt.nz/business-and-employment/employment-and-skills/plan-of-action-against-forced-labour-people-trafficking-and-slavery/modern-slavery/
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Modern slavery and worker exploitation

On this page

What we proposed

Next steps

What is modern slavery

Definition of worker exploitation

How is New Zealand currently addressing modern slavery and worker exploitation?

Further reading

Acronyms and glossary

Breadcrumbs

Modern slavery and worker exploitation

On this page

What we proposed

Next steps

What is modern slavery

Definition of worker exploitation

How is New Zealand currently addressing modern slavery and worker exploitation?

Further reading

Acronyms and glossary