The Worker Protection (Migrant and Other Employees) Act 2023 came into effect on 6 January 2024 and brought with it a suite of changes across the Employment Relations Act, the Immigration Act, and the Companies Act, to combat migrant exploitation. Exploitation of migrant workers can vary from non-compliance with standard employer obligations, through to forced labour and people trafficking.
Migrant workers play a significant role in New Zealand’s economy by filling gaps in the labour market, particularly in sectors facing labour shortages. By creating an environment that values and protects these workers, our country is more likely to attract skilled and motivated individuals who can contribute to innovation, economic diversification and sustained long-term growth.
So, what are the new rules then?
The new Act helps to protect the employment conditions of every New Zealand worker. The key changes now in effect following the introduction of The Worker Protection Act 2023 are listed below.
1. All employers must provide employment-related documentation within 10 working days of it being requested by a labour inspector or immigration officer.
2. There are three new immigration infringement offences. These offences are:
- allowing a person who is not entitled under the Immigration Act to work in the employer’s service to do that work.
- employing a person in a manner that is inconsistent with a work-related condition of that person’s visa.
- failing to comply with a requirement to supply documents within 10 working days.
3. The Chief Executive of the Ministry of Business, Innovation and Employment (MBIE) can now choose to publish the names of employers who offend against the Immigration Act.
4. People convicted of migrant exploitation or people trafficking can be disqualified from managing or directing a company. This will ensure that individuals who use corporate structures to avoid detection and/or consequences will no longer be able to do so.
The consequences for non-compliance
Failure by an employer to supply the required employment-related records within 10 working days is now an infringement offence.
A labour inspector or immigration officer can:
- issue an infringement notice and a fee of $1,000 per offence, up to a maximum of $20,000 in infringement fees in a 3-month period, or
- seek a penalty at the Employment Relations Authority for each breach of up to $10,000 for an individual or $20,000 against a company or corporate body.
Relax, if you’re already a good employer with integrity, this won’t change much
In most cases, the new infringement offences do not change employers’ obligations. Employers are already required to only employ people who hold a valid visa and in line with those visa conditions, as well as provide documents as part of post-decision checks under the Accredited Employer scheme. The addition of infringement offences simply strengthens and standardises the sanction for non-compliance with these requirements.
Infringement notices and publication of offending employers will commence later in 2024, but that doesn’t mean you can’t be penalised for any non-compliances happening before that. Infringement notices will be able to be issued retrospectively, so it pays to check you are on the right side of the law now. You can read more on the government’s immigration website.
The importance of good record-keeping
If you’re ever in a position where you’re asked to provide employment-related documentation to a labour inspector or immigration officer, having up-to-date books will ensure you can meet the 10 working days deadline.
As an employer, you must keep wage, time, holidays and leave records that comply with the Employment Relations Act 2000 and the Holidays Act 2003. Good record-keeping is in the interests of both the employer and the employee. It ensures that an employee’s pay and leave are correct, prevents misunderstandings and protects both parties if there is an issue. For a list of the records you are expected to keep as an employer, check out the Employment New Zealand website. It’s worth noting that employers are obligated to show employees everything you are recording on their file, should they request this.
We can help
As a Kiwi employer, you’re subject to many frequently changing rules, but ignorance is no excuse for illegal behaviour. If you need support establishing what new or impending law changes mean for your business or want some advice on the best way to approach migrant employment, we can help. Our initial chat is always free and, if you decide you’d like some independent, impartial and up-to-date support, you can make use of our qualified HR expertise for as little as an hour, or as long as you’d like. It’s up to you.
Disclaimer: While this article provides commentary on HR and employment law topics, it should not be used as a substitute for professional advice for specific situations. Please seek professional advice for any questions specific to your workplace.