MBIE audits find Chch companies in breach of employment laws

5 November 2014

MBIE audits find Christchurch companies in breach of employment laws

Sixteen Christchurch labour hire and construction companies have been found in breach of employment laws through a series of proactive audits carried out by the Ministry of Business, Innovation and Employment’s Labour Inspectorate.

The Labour Inspectorate launched its audit programme in May this year following an increasing number of complaints about the employment practices of some businesses associated with the Christchurch rebuild.

Southern region manager Steve Watson says the Labour Inspectorate has audited 40 Canterbury companies within the last six months, with 23 of these audits now complete. This is part of a joint programme of work with Immigration New Zealand and WorkSafe New Zealand to ensure labour standards in the rebuild.

“Of the 23 completed audits we have found 16 companies to be in breach of employment standards,” says Mr Watson.

“The level of non-compliance is disappointing and we have identified a number of common issues that are cause for concern.”

“Many of the breaches relate to incomplete employment agreements, unlawful deductions from wages and insufficient records. As a result we have issued nine improvement notices, six enforceable undertakings, and one case has been referred to the Employment Relations Authority.”

Mr Watson says these findings show that there is a clear need for ongoing monitoring of employers working in the rebuild.

“The Labour Inspectorate, Immigration New Zealand and WorkSafe New Zealand take employment, health and safety and immigration law breaches seriously and are working proactively to crackdown on non-compliant employers.”

“All three regulatory agencies are also continuing to investigate complaints and take action against breaches of labour-related laws identified outside of the audit programme.”

“But this is not just the job of regulatory agencies. Those commissioning work and head contractors must take responsibility for monitoring compliance with labour and immigration requirements right to the work site. And this is not just about checking wages, records and visas. We know that if employers are not treating their workers fairly, they are also less likely to be properly managing their health and safety obligations.”

“Everyone has a part to play to ensure a safe and fair rebuild.”

The Ministry of Business, Innovation and Employment encourages anyone with concerns about their employment situation to call its contact centre on 0800 20 90 20 where their call will be handled in a safe environment.

An Enforceable Undertaking is a voluntary commitment by the employer to address the breaches within a certain timeframe. If that doesn’t happen, the Employment Relations Authority (ERA) can issue a compliance order and if that is not followed, then an order for penalties. If for instance money owed to workers is not paid, the breach may go straight to the District Court for civil debt enforcement proceedings.

An Improvement Notice describes the employment law breach, the date and steps by which the employer must comply. If the employer fails to do so, the labour inspector may seek enforcement through a compliance order from the ERA. If the employer still does not comply, the labour inspector may seek penalties via the ERA.

ENDS

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