Labour Inspectors are employed by the Ministry of Business, Innovation and Employment (MBIE) to enforce several provisions of employment-related statutes, particularly those concerning pay and leave.
Per section 223A of the Employment Relations Act 2000 (the ER Act), the role of a labour inspector is to:
- Determine whether the provisions of the relevant Acts have been complied with;
- Take all reasonable steps to ensure compliance;
- Monitor and enforce compliance with employment standards; and
- Perform any other functions conferred by or under the relevant Acts.
The purpose of Labour Inspectors is to hold employers accountable. They do this by investigating breaches of employment standards, particularly those concerning minimum entitlements like wages, holiday pay and other statutory rights. Inspectors can issue enforceable undertakings, improvement notices, and notices of demand to employers. These notices and undertakings can then be enforced against employers by the Employment Relations Authority or Employment Court.
In cases of serious breaches of minimum entitlements, Labour Inspectors may apply directly to the Employment Court for declarations of breach, pecuniary penalty orders, compensation orders, or banning orders. They may also commence proceedings in the Employment Relations Authority to recover unpaid wages or holiday pay on behalf of employees.
How do I engage the help of a labour inspector?
To engage a Labour Inspector in New Zealand, you can contact MBIE to report a potential breach of employment law. This is suitable for issues affecting minimum employment standards or larger systemic problems. Labour Inspectors are not suitable for investigating disadvantage or dismissal grievances.
There is also an online form on Employment New Zealand’s website where you can make a complaint regarding a breach of the employment standards.
If you have questions regarding the strength of your complaint or the process, Frontline Law’s team of experienced lawyers can help advise you on your next steps.
What do I do as an employer if I’ve been contacted by a labour inspector?
As an employer, if a Labour Inspector contacts you, it is important to understand your obligations.
You are required to cooperate with Labour Inspectors when they are performing their functions. This includes immediately complying with requests for wage, time, holiday, and leave records. If, for any reason, these records do not exist, you must compile and deliver them to the Labour Inspector upon receiving written notice to do so. Failure to do so without reasonable cause can result in penalties imposed by the Employment Relations Authority.
Responding to Notices
Labour Inspectors may issue improvement notices or demand notices if they believe that you, as an employer, have breached employment laws. You must comply with these notices within the specified timeframes. For example, demand notices impose a legal obligation to pay the specified amounts owed to employees and are enforceable by compliance orders or as judgment debts. You do have the right to object to these notices by lodging an objection with the Employment Relations Authority within 28 days.
Employers who fail to comply with a Labour Inspector’s lawful requests or notices may face penalties, including fines. For example, obstructing a Labour Inspector in the performance of their duties can result in a fine of up to $10,000.
The first step in getting support is to talk with a lawyer from Frontline Law about your situation and see what options we can offer you. Contact Frontline Law for a free initial consultation.
*The information in this blog post is general in nature and is not legal advice. If you need advice, you should contact us about your specific situation.
