Several important changes have recently been introduced to New Zealand’s employment legislation regarding minimum employment standards. These new standards apply to all employment relationships and it is the employer’s obligation to ensure that the employment agreements, policies and practices are up to date and compliant.

As part of these legislation changes, tougher sanctions can now be imposed for a breach of employment standards. The most significant change is an increase in fines from $10,000 to $50,000 for an individual and from $20,000 to $100,000 plus for a company. There is now greater risk that third parties (e.g. directors or senior managers) may be held accountable for breaches of employment standards if they are knowingly and intentionally involved in those breaches.

We have seen significant cases taken by the Labour Inspectorate reported in the media. These cases have not only impose penalties but from 1 April 2017 employers that have incurred a penalty for a breach of employment standards can face a stand-down period preventing them from recruiting migrant labour for up to two years, depending on the severity of the breach.

We want to ensure our clients are prepared for and protected against these changes, and check that employment arrangements and operational practices are up to scratch.  Part of this also includes staying compliant with the Holidays Act, maintaining appropriate wage and time records, and ensuring health and safety obligations are met.

We understand there’s a lot to be aware of and it’s a mountain of a task to keep up. With wage arears claims going back six years, the financial liability of getting it wrong can be huge.  Let us take the stress away by auditing your records, systems and processes to give you the assurance you need.