Human Resources Archives

Modern Slavery Bill

August 5, 2026

Business Law, Employment Law, Human Resources, Human Rights, Legislation, Supply Chains, Workplace Law

Implications for business

The introduction into Parliament of the Modern Slavery Bill has brought awareness of how modern slavery has manifested itself into New Zealand businesses. Modern slavery can rear its ugly head in a range of ways from forced labour in supply chains, exploitation (or coercion) of workers and various forms of trafficking.

The Bill has also made history as it is the first time a bill has been introduced through Standing Order 288. This allows a Private Member’s Bill to bypass the random ballot (or ‘biscuit tin’) process if it is supported by two-thirds of non-executive MPs.

This Bill was co-sponsored by Labour MP Camilla Belich and National MP Greg Fleming. This bi-partisan effort shows the importance of the Bill not only to our parliamentarians, but also to New Zealand society.

What is modern slavery?

Modern slavery is often seen as a global matter and, for many New Zealanders, it probably feels like an issue away from our shores. Unfortunately, this is far from the truth. World Vision currently estimates that the average Kiwi spends around $77 a week on goods linked to various forms of modern slavery.^[1] Walk Free’s 2023 Global Slavery Index estimated that in 2021, there were 8,000 individuals on any given day, living in modern slavery in New Zealand.^[2]

In a high-profile case in the modern history of slavery in New Zealand, Joseph Matamata was convicted of 13 charges of slavery and 10 charges of human trafficking involving labourers working in orchards. After bringing the labourers to New Zealand with promises of a better life, Matamata retained their income, restricted communication and movement, and used threats of violence to ensure the labourers stayed in their jobs.^[3]

The Bill

The Bill is both broad and extensive in defining modern slavery. It is defined as:

Crimes already understood in the Crimes Act 1961:
– Dealing in slaves, as well as debt-bondage or sefdom
– Dealing in people under 18 for sexual exploitation, removal of body parts, or engagement in forced labour
– People trafficking, and
– Coerced marriage or civil union

The ‘worst forms of child labour’ under Article 3 of the International Labour Organisation Convention No. 182
Trafficking as defined by Article 3 of the United Nations Protocol
Forced or exploitative labour
Servitude, and
Sexual exploitation.^[4]

Outside of the definition of modern slavery, the Bill requires the Minister to report annually on modern slavery matters, to publish guidance and to direct the Chief Human Rights Commissioner to designate modern slavery as a ‘priority area’ if necessary. The Bill will lead to the creation of a Modern Slavery Statement Register to be publicly accessible. All this will be overseen by the proposed independent Anti-Slavery Commissioner.

What does this mean for business?

The Bill currently states that ‘reporting entities’ are required to:

Prepare and publish annual modern slavery statements that describe their structure and supply chains
Identify modern slavery risks (both real and potential)
Outline what steps the entity is taking to deal with the identified risks, and
Lodge these statements on the Modern Slavery Statement Register.

A ‘reporting entity’ in the Bill is defined as a business with a consolidated annual revenue that exceeds $100 million. These entities not only refer to New Zealand entities, but also any overseas company carrying on business in New Zealand. These entities can be both public and private organisations, with government agencies also being captured under this regime.

How this affects New Zealand businesses

If your business is considered a reporting entity under the Bill, non-compliance with the regime could carry a strong penalty. Offences will be committed if entities fail to comply with their reporting obligations, or if they knowingly make false or misleading statements in their reports. These offences could amount to reporting entities being liable on conviction to a fine of up to $200,000.

From a civil point of view, the maximum pecuniary penalty for a contravening reporting entity is $600,000.

This also imposes personal liability for directors and individuals involved in management. If an offence occurs with the permission, knowledge or presumed knowledge of these individuals, they will be found guilty. This is particularly important if the director or management should have known it was occurring but failed to take reasonable steps to prevent it from happening.

The final important note for businesses is that if they are found to be non-compliant, both the name of the business and the individuals responsible will be published on the Register for three years.

Preparing for the Bill to become law

Many affected by the reporting obligations of this Bill may already be familiar with its obligations, considering there are similar laws in other jurisdictions. However, potential ways to prepare for the implementation of the modern slavery legislation in New Zealand could be in the form of preparing policies and governance, reviewing supply and procurement contracts (and being particularly diligent about who your suppliers are), and potentially establishing internal whistleblowing procedures.

Other steps could involve identifying risk factors that may facilitate the exploitation of workers, and developing management plans to mitigate them. The Ministry of Foreign Affairs and Trade has a range of specific resources all targeted towards combatting modern slavery.^[5]

A positive development

This Bill is widely seen as a positive development in New Zealand law. While there may be concerns on the extent of obligations imposed on entities, the benefits to victims undoubtedly outweigh the costs. If you are concerned that this proposed legislation may affect the way you do business, please don’t hesitate to contact us.

^[1] https://www.worldvision.org.nz/about/media/parliamentary-rule-modern-slavery-act-for-nz/

^[2] https://www.walkfree.org/global-slavery-index/country-studies/new-zealand/

^[3] Joseph Auga Matamata v R [2020] NZHC 1829.

^[4] https://www.legislation.govt.nz/bill/members/2026/242/en/latest/#LMS1569519

^[5] https://www.mfat.govt.nz/en/trade/nz-trade-policy/combatting-modern-slavery

DISCLAIMER: All the information published in Fineprint is true and accurate to the best of the authors’ knowledge. It should not be a substitute for legal advice. No liability is assumed by the authors or publisher for losses suffered by any person or organisation relying directly or indirectly on this newsletter. Views expressed are those of individual authors, and do not necessarily reflect the view of Edmonds Judd. Articles appearing in Fineprint may be reproduced with prior approval from the editor and credit given to the source.
Copyright, NZ LAW Limited, 2026. Editor: Adrienne Olsen. E-mail: [email protected] Ph: 029 286 3650

Workplace Stress: An Employment Issue?

July 31, 2026

Employee Wellbeing, Employment Law, Human Resources, Legal Guidance, Small Business Advice, Workplace Advice

It was a busy time at Emilio’s agri business, and Sally noticed that one of his employees, Barry, appeared to be under considerable pressure.

“You should check in with him,” Sally suggested. “If an employee is struggling, you need to take those concerns seriously. Workplace stress can become an employment issue, particularly if an employer is aware that an employee’s health may be affected.”

Employers have obligations to provide a safe and healthy workplace. While they are not expected to diagnose or treat medical conditions, they should not ignore signs that an employee may be struggling.

Where health concerns arise, an employer should listen to the employee, consider whether any support or workplace adjustments may be appropriate, and seek professional advice where necessary.

The key is to address concerns early. Ignoring signs of workplace stress or failing to respond appropriately could create greater problems for both the employee and the employer.

If you are unsure how to handle a situation involving an employee’s health or wellbeing, it is important to seek employment advice before taking action.

When Workplace Conflict Hits

July 3, 2026

Business Law, Employment Law, Human Resources, Legal Guidance, Small Business Advice, Workplace Regulation

Lately, Sally had noticed that Emilio seemed a little distant and distracted. She asked him what was troubling him.

“Mi vida, I am so stressed. Work is so busy. We have orders to fill and my sales manager is having an argument with my chief mechanic!”

Emilio explained that his agritech business was in its peak season and orders were pouring in, but this issue meant the sales team and mechanical team could not communicate. That led to serious delays, angry customers and frustrated suppliers.

Sally suggested that Emilio might need some employment advice about New Zealand employment law.

Emilio called his lawyer the next morning. He learned that employers had obligations to act in good faith. He did not realise that employers could raise concerns with employees about their performance or workplace conduct, investigate the facts, and make decisions – provided these were decisions a fair and reasonable employer could make in the circumstances.

With guidance from his lawyer, Emilio raised the concerns with the sales manager and the chief mechanic. Quickly, the argument cooled off. Emilio met with each of the employees, and asked them for their side of events. He learned that the manager and mechanic were old friends that had different opinions about the best kind of coffee for the tearoom. The manager had asked office staff to get his favourite Kopi Luwak coffee, and had made a cup for the mechanic, telling him it was something different. The mechanic learned about the prank and was extremely upset.

Concluding the investigation, Emilio decided that he would give a written warning to the manager about the prank due to the effect it had on the mechanic, and gave a verbal warning to both employees about allowing the argument to affect the workplace. Since Emilio had caught it early and gave the employees plenty of opportunity to participate, they accepted the outcome and made amends, although the mechanic now brings a thermos to work.

Emilio went on to have his best sales season yet, meaning he could afford a holiday to Spain to take Sally to visit his abuela.

Jadin Hooper

Navigating redundancy

April 28, 2026

Employment Law, Human Resources, Regulatory Compliance, Risk Management, Workplace Regulation, Workplace Rights

Understanding the legal process for employers

Redundancy refers to a situation where an employee’s position is deemed superfluous to an employer’s needs. Understandably, a redundancy proposal can bring stress and uncertainty to those affected. Unfortunately, it is a term that many New Zealanders may be familiar with.

We provide a summary of the required process, and obligations by you, as an employer, in proposing a potential redundancy in your organisation.

Lawful redundancy

For a redundancy to be lawful, it must be both justified and carried out through a fair process. A redundancy is justified only where there is a genuine commercial reason for it; redundancy cannot be used as a means to dismiss a poor performing employee or as an alternative to a disciplinary process for misconduct.

‘Genuine commercial reasons’ may include a downturn in work/revenue, declining financial performance, organisational restructuring, or the merger or acquisition of a business. Courts are increasingly applying scrutiny into the ‘commercial rationale’ for a redundancy.

However, even where a genuine reason exists, the dismissal will not be lawful unless the correct process is followed.

Process

The process that all employers must follow includes:
• Providing your employees with relevant information about the proposed change and the potential impact on their employment if the proposal is adopted
• Consultation with your employees and considering their feedback (and enabling your employees opportunities to seek advice or support within the consultation period)
• Considering alternatives to redundancy, and
• Following any additional procedural requirements specified in the relevant employment agreement or policy documents.

Providing information

The Employment Relations Act 2000 sets out that an employer who is proposing to make a decision that will, or is likely to, have an adverse effect on the continuation of employment of one or more of his or her employees, is required to provide the affected employees with access to relevant information about the decision.

The term ‘relevant information’ will depend on the specific circumstances. It includes, however, information necessary for employees to understand the rationale for the proposed change and to enable them to provide informed feedback. Your employee is entitled to ask for additional information relevant to your proposal. While an employer is not required to provide confidential information, they must be able to genuinely demonstrate that disclosure would cause actual, unreasonable prejudice, and must show that they have explored alternative options for confidential consultation.

Consultation

You are not only required to provide a potentially affected employee with all relevant information, but you must also ensure there is a genuine opportunity for your employee to comment on that information before any decision is made. This includes providing sufficient time to provide feedback.

You must approach this process with an open mind and genuinely consider any feedback received before deciding whether to proceed with the proposed change. Without genuine consultation, the redundancy may be deemed a pre-determined outcome, and a breach of your obligation as their employer to act in good faith.

Selection criteria

In circumstances where you are reducing a number of same/similar roles, a fair and reasonable selection process must be followed to decide which of your employees will be appointed to the remaining roles. Clear and relevant selection criteria should be provided to your employees in advance, and their feedback sought. This includes providing details as to how that criteria will be assessed and weighed.

Redeployment

If a role is disestablished, you have an obligation to consider redeployment opportunities within your organisation for any of your affected employees. The affected employee/s continuing employment must be considered before a new or vacant role is advertised externally. Redeployment must be considered for an affected employee, even if some (reasonable) training or upskilling may be required.

Your obligation to consider all redeployment options, stems from an employer’s statutory requirement of good faith – to be active and constructive in maintaining the employment relationship, including being responsive and communicative.

A challenging time

Proposed redundancy can be a challenging and uncertain time for all; but understanding the legal framework and the required process can help you to navigate this with more confidence.

It is also important to carefully review employment agreements and relevant workplace policies to carefully identify any relevant provisions, including any entitlement to redundancy compensation.

If your organisation is contemplating redundancies, we recommend you talk with us at the outset; this will help you and your employees better understand their rights and obligations.

DISCLAIMER: All the information published in Fineprint is true and accurate to the best of the authors’ knowledge. It should not be a substitute for legal advice. No liability is assumed by the authors or publisher for losses suffered by any person or organisation relying directly or indirectly on this newsletter. Views expressed are those of individual authors, and do not necessarily reflect the view of Edmonds Judd. Articles appearing in Fineprint may be reproduced with prior approval from the editor and credit given to the source.
Copyright, NZ LAW Limited, 2025. Editor: Adrienne Olsen. E-mail: [email protected] Ph: 029 286 3650

Human Resources