Labour Inspectorate In Nationwide Employer Compliance Clampdown

Scores of employers across the country can expect a visit from Labour Inspectors soon as the Ministry of Business, Innovation and Employment’s (MBIE) Labour Inspectorate clamps down on errant business owners.

The Inspectorate has multiple compliance monitoring operations already underway or due to start soon on both the North and South Islands.

Businesses operating in various sectors are under the spotlight as teams from the Labour Inspectorate scour the country to check employers are doing right by their employees. In some instances, these operations may be supported by teams from Immigration New Zealand (INZ) and Tenancy Services,

Labour Inspectorate Head Simon Humphries says the multiple operations are the culmination of months of planning.

“Our Compliance and Investigations teams have been working tirelessly towards these operations for some time through gathering intelligence and identifying businesses to be visited.

“One of the larger operations, called Operation Atoll, began in late January with teams proactively visiting businesses in the Central North Island throughout much of 2025. So far in this operation, teams of Labour Inspectors have visited employers in the Hamilton and Napier areas and several areas of concern were identified.

“Numerous other operations are also already underway nationally while other major operations are due to start later this month,” Mr Humphries says.

These operations will also continue throughout the year.

In many instances follow up visits are being made to businesses where breaches have previously been identified to check whether the necessary improvements have been made.

Business sectors under the spotlight include:

• Retail
• Hospitality
• Construction
• Security
• Horticulture
• Viticulture
• Dairy.

Mr Humphries says exploitation of vulnerable workers undermines the labour market, undercuts fair competition and causes great hardship to the workers affected.

The retail and hospitality sectors are particular areas of concern for the Inspectorate while there has also been a marked increase in complaints from employees working in the security, construction and transport industries.

“With this in mind, combating exploitation of workers -- migrants and others -- is a priority for the Labour Inspectorate and MBIE’s other regulatory teams. We want employers to operate on a level playing field where no one is taking unfair advantage by abusing employees or skirting employment legislation.

“While our primary objective remains identifying non-compliance with minimum employment standards, we are also using these operations as an opportunity to raise the Labour Inspectorate’s profile and increase visibility to deter poor employer behaviour.

“When breaches are detected enforcement action may be taken. But our Inspectors are always ready to help and educate employers who are not certain of their employment standards obligations or need our help to resolve a complaint through guided resolution,” he says.

Areas of potential non-compliance which will be monitored include:

• Payment of the minimum wage
• Recordkeeping
• Holiday and leave pay
• Leave entitlements
• Payment of premiums.

The involvement of teams from INZ and Tenancy Services to support the Inspectorate is part of an MBIE initiative to use an integrated compliance and enforcement approach to dealing with issues like migrant exploitation and non-compliance with accreditation obligations.

“It’s about MBIE using its collective reach to provide better outcomes when dealing with non-compliance and other serious abuses of basic employment standards,” says Mr Humphries.

It is also important that employers are aware that they must comply with their employment standards and accreditation obligations. Meeting your AEWV accredited employer obligations Immigration New Zealand.

© Scoop Media