This new legislation is proposed primarily to reduce "modern slavery" and worker exploitation in the country.

It defines workplace exploitation as non-minor breaches of employment standards, while it said modern slavery is severe exploitation that a person cannot leave due to threats, violence, or deception. It covers forced labour, debt bondage, forced marriage, slavery, and human trafficking.

"While modern slavery and worker exploitation may appear limited in New Zealand, we know the hidden nature of these crimes means vulnerable people are less likely, or able, to seek help or report their experience. That's why we need to ensure we have adequate protections in place," said Michale Wood, Workplace Relations and Safety Minister.

The proposed legislation seeks to require all organisations to take action if they become aware of modern slavery or worker exploitation, medium and large organisations to disclose the steps they are taking and large organisations as well as those with control over New Zealand employers to undertake due diligence. 

To support the proposal's primary objective, the government also outlined the secondary goals of enhancing New Zealand's international reputation as a country that supports human rights and transparency, strengthening the country’s international brand and making it easier for their businesses to continue their world trade, supporting consumers to make more informed choices concerning modern slavery and worker exploitation risks associated with good and services, driving culture and behaviour changes in entities which lead to more responsible and sustainable practices and levelling the playing field for entities which act responsibly across their operations and supply chains.

According to Wood, these proposals are expected to "drive meaningful change" in New Zealand. The government is now holding consultations on the proposals, which will be open until June 7, 2022.