CCNZ made a submission on proposed Modern Slavery Bill, which seeks to implement a statutory framework to strengthen and coordinate actions to combat modern slavery. Its proposals include new requirements to report and track progress to combat modern slavery through contracting supply chains, and to consider whether support for victims is adequate as part of regular reviews of legislation and policy.

Under the proposed legislaton, reporting will primarily affect companies above $100m, but responsibilities will extend through the supply chain.

Modern slavery and worker exploitation are abhorrent and must be addressed both domestically and internationally. That position is consistent with CCNZ’s 2022 submission, which recognised the moral imperative to eliminate exploitation while ensuring legislation is practical, proportionate, and does not impose significant cost burdens or expose businesses to undue risk for matters outside their control.

It’s clear from reported cases of abuse that there is a need for the country to address the issue of modern slavery. However, this legislation requires careful handling to ensure it is not ‘too much’ in terms of added cost and time imposition for legitimate business interests, while achieving ‘not enough’ in terms of prevention and prosecution of deliberate criminal activity.

CCNZ recommendations

• Retain the Bill’s core objective, but consider whether a proportionate due diligence obligation should sit alongside reporting.
• Adopt a risk-based, “reasonable and practical steps” standard for any due diligence duty, rather than an absolute obligation. Ensure this aligns with any relevant international certification systems.
• Clarify the position of SMEs, while avoiding excessive compliance burden, including whether they should have a light-touch obligation to understand and manage obvious modern slavery risks, particularly where they employ migrant labour.
• Clarify what is considered to be a reasonable level of diligence for companies working with overseas supply chains (i.e. is it reasonable to expect a contractor to extend reporting to equipment or equipment components).
• Provide a clear mechanism for larger entities to seek proportionate supply-chain information, without enabling excessive risk transfer to subcontractors.
• Amend director liability settings so liability is insurable, or otherwise applies only where there is clear, deliberate, or reckless negligence.
• Procurement consequences: use exclusion from government procurement for repeat, wilful, or negligent offenders, rather than for technical or low-fault non-compliance.
• Develop industry guidance in partnership with affected sectors, including civil construction.