Measures to tackle the scourge of "modern-day slavery" have been added to the Coroners and Justice Bill by the government.
Under the new powers, a person who holds another in "slavery or servitude" can be imprisoned for up to 14 years.
The third-reading amendment to the bill was introduced following a promise from ministers last week in the light of a strong campaign for a change in the law.
Organisations such as Liberty and Anti-Slavery International claim that forced labour remains widespread and some migrants are held against their will on low wages.
They argue that it has been difficult to prosecute the offenders because of a lack of clear laws that outlaw the practice.
Crossbencher Baroness Young of Hornsey, who led the fight in the Lords for the new powers, told peers: "This corrects a historical anomaly whereby we haven't in this country made slavery and forced labour a criminal offence."
Lord Tunnicliffe, speaking for the government, said the new law, which will reach the statute book if it is approved by MPs, was a "bespoke criminal offence to tackle modern-day slavery".
He said he "hoped" the new powers would be in force within six months but could not promise that they would be.
The law would target those who hold another person "in slavery or servitude" or require them to "perform forced or compulsory labour" and is based on article four of the European Convention on Human Rights.
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