The initiative is part of the Labour Inspectorate’s ongoing Operation Atoll which began in January 2025 and has already involved visits to 160 retail and hospitality businesses between January and October. Other areas visited include Hamilton, Napier, Taranaki, Masterton, Manawatu, Wellington, Rotorua, Taupō and the greater Waikato areas of Ngāruawāhia, Raglan and Huntly.
The resumption of this operation follows another major MBIE compliance initiative – Operation Antic – where teams of labour inspectors have been visiting businesses in the beauty sector, including nail salons and massage businesses in recent weeks.
During the latest phase of Operation Atoll, teams from the Inspectorate visited a further 26 businesses in Thames, Whitianga and Coromandel including restaurants, cafes, bars, and retail stores.
Holiday destinations
“These areas are popular holiday destinations, so we’re engaging with businesses early to get ahead of the busy season,” says Margaret Meafua, Labour Inspectorate Compliance Manager for the Central region.
“The goal is to ensure businesses are meeting their basic employment obligations - such as proper record keeping, employment agreements, and entitlements - before the influx of seasonal and migrant workers.
“It is also an opportunity for our inspectors to engage with employers and help them understand what they need to do to stay compliant and do right by their workers,” she says. “It was encouraging to find that the businesses visited were generally receptive to the purpose of the visits.”
As with Operation Antic, MBIE’s operation in the Coromandel aims to protect vulnerable workers, particularly migrants, and ensure businesses are meeting minimum employment standards.
“We want Kiwi businesses to be able to operate on a level playing field without other businesses taking unfair advantage by flouting the law or taking shortcuts,” Ms Meafua says.
“Intelligence gathered during Operation Atoll will help the MBIE teams build a clearer picture of compliance levels across the Coromandel region and help them assess whether enforcement action is needed.”
Common issues identified
Common issues identified during the earlier phases of Operation Atoll are:
- Employment agreements not provided or are not fully compliant.
- Incorrect holiday and leave processes.
- Incomplete record keeping.
“Generally, most employers appear to be doing the right thing but where serious breaches have been identified our inspectors have taken enforcement action while also working with employers, so they get a better understanding of their employment responsibilities.
Enforcement action has included several infringement notices, enforceable undertakings agreed with employers, and improvement notices where issues were found.
“Employment agreements and correct record keeping are the very basics of employment standards that all Kiwi employers should be complying with. Businesses not complying with these requirements should expect infringement notices,” says Ms Meafua.
She says the MBIE teams are assessing the data collected in the Coromandel operation and cannot yet provide details of any issues identified. “We will know more once this data has been processed and analysed.”
MBIE encourages anyone who thinks they or someone else has been treated unfairly in the workplace to contact our 0800 20 90 20 contact centre number where their concerns will be handled in a safe environment.