MBIE is Targeting Construction Companies

Posted by Benefitz Admin on September 4 2019 in News

MBIE is Targeting Construction Companies

You might have heard in the news recently that four construction companies (CNZ Homes, Vanguard Construction, MX Construction and GL Siteworks) have all received infringement notices for breaching Employment Relations Act 2000 and Holidays Act 2003, and put on the Ministry of Business (MBIE) stand down list which prevents companies from recruiting migrant labour.

It has been reported that the Labour Inspectorate has investigated another 46 companies as a result of spot checks. It is possible for the Labour Inspectorate to conduct spot checks on other constructions companies as well.

The minimum standards that the Labour Inspectorate checks are:

  • Written employment agreements
  • Minimum pay
  • Break entitlements
  • Annual and public holidays
  • Sick, parental and bereavement leave
  • A safe workplace
  • Accurate pay and holiday records

Examples of common breaches are:

  • Failure to record the number of hours worked each day in a pay period and the pay for those hours;
  • Failure to record the details of the dates of, and payments for, any public holiday or alternative holiday on which the employee did not work, but for which the employee had an entitlement to holiday pay; and
  • Failure to record the date on which the employee became entitled to any alternative holiday.

If you wish to have your current system or any documents reviewed, please let us know.

Shelley Eden, Partner
Contact her on +64 9 300 8756 or Shelley.Eden@shieffangland.co.nz 

Deanna Clark, Special Counsel
Contact her on +64 9 300 8751 or Deanna.Clark@shieffangland.co.nz

Tony (Tae Yong) Sung, Solicitor
Contact him on +64 9 300 8766 or Tony.Sung@shieffangland.co.nz

Link to the news on mass breaches of employment law by construction industry bosses:
https://www.tvnz.co.nz/one-news/new-zealand/mass-breaches-employment-laws-construction-industry-bosses-1-news-uncovers

This paper gives a general overview of the topics covered and is not intended to be relied upon as legal advice.