In April last year, INZ introduced a compulsory stand-down for “non-compliant employers”. This is now beginning to have a significant effect on a number of employers.
What is the non-compliant employer list?
If an employer receives an infringement notice from the Labour Inspectorate, or a penalty from the Employment Relations Authority (ERA) or Employment Court, the employer will be placed on a non-compliant employer list.
That employer is then unable to support an employee to apply for a further work visa or residence for set period.
How could my business end up on the list?
Your business could get an infringement notice for breaching any minimum employment law requirements, such as failing to correctly pay holiday pay or failing to follow a redundancy process correctly.
What is the set stand-down period?
It depends on the nature of the enforcement action. However, the minimum is a period of six months. The maximum is 24 months.
What about existing employees with work visas or applying for residence?
Even though it is not their fault, existing employees will be unable to renew their work visas or successfully apply for residence whilst an employer is included in the non-compliant employer list. This will mean employees will have to find employment elsewhere, if they want to stay in NZ.
Are the Labour Inspectorate and INZ using the list?
Yes, the number of employers on the list is growing.
There are currently 98 employers on the list
Can I challenge my business being on the list?
The only way to challenge a business being on the list is to challenge the infringement notice, or the ERA or Employment Court decision. We strongly recommend that, if you employ migrants, you seek legal advice as soon as you become aware of an employment law related issue, for example, as soon as the Labour Inspectorate raises concerns with you.
Copyright © Cavell Leitch. All rights reserved. Redistribution is only permitted with express written permission. For enquiries please contact us. This article by its nature cannot be comprehensive and cannot be relied on by clients as advice. It is provided to assist clients to identify legal issues on which they should seek legal advice. Please consult the professional staff of Cavell Leitch for advice specific to your situation.