Why Labour Inspectors visit
Labour Inspectors from the Ministry of Business, Innovation and Employment (MBIE) help ensure all businesses meet minimum employment standards. These standards include:
- minimum wage
- paid leave entitlements
- written employment agreements
- keeping accurate wage, time and holiday records.
Labour Inspectors may visit your business due to a complaint or as part of a routine, proactive check. These visits can happen at any reasonable time and may involve the use of powers like interviews with staff and checking of employment records.
What happens during a visit
During a visit, Labour Inspectors can:
- see and take copies of employment records (for example, signed agreements, pay and leave records, and hours worked)
- speak with employees
- leave a notice and continue the visit even if the employer is unavailable.
Employers are legally required to provide the required information. Failure to do so may result in enforcement action, including fines or legal proceedings.
How to verify a Labour Inspector
Labour Inspectors carry official warrants that confirm their identity and authority. If someone claims to be a Labour Inspector, you have the right to ask to see their warrant.
How to prepare
To avoid disruption and ensure compliance:
- keep accurate and up-to-date records for each employee
- ensure all staff have signed employment agreements
- understand your obligations under employment law.
“Being proactive about compliance helps avoid costly penalties and builds a reputation for doing the right thing,” says David Milne, Compliance Manager Northern. “We want to support employers to build strong systems, correct minor issues, and set clear expectations for staff.”
What if breaches are found?
If breaches are identified, Inspectors may:
- issue improvement notices
- require payment of arrears to employees
- issue infringement notices for specific breaches – such as failing to keep proper wage, time, or holiday records, or not retaining signed employment agreements. Each breach can result in a NZD $1,000 infringement fee, with a maximum total of NZD $20,000 in infringement fees within any 3-month period
- take serious cases to the Employment Relations Authority or Employment Court.
Special considerations for migrant workers
If you employ migrant workers, be aware of additional immigration compliance requirements. Breaches of immigration or employment standards may result in a stand-down period and restrictions on supporting visa applications.
Need help?
See our tools and resources to help you comply, including:
- the Employment Agreement Builder
- guidance on pay, leave, and work arrangements
- information on resolving employment issues.