Spotlight on Transport Operators and Migrant Exploitation

In July 2024, News, NTA6 MinutesBy Carol McGeadyMay 31, 2024

Employment New Zealand is intensifying its scrutiny of the road freight sector, dedicating significant resources to investigating potential migrant exploitation under the Worker Protection (Migrant and Other Employees) Act 2023. This increased focus means that transport operators need to be vigilant and proactive in ensuring compliance with all relevant laws and regulations. Understanding your responsibilities and obligations is crucial to maintaining a fair and lawful workplace.

“Doing the right thing by your employees is not just about compliance; it’s about understanding your obligations and creating a fair and safe working environment. Ensuring that every worker, regardless of their background, is treated with respect and given their due rights is fundamental to the integrity of our industry,” states David Boyce, CEO, NZ Trucking Association.

Key Provisions for Employers

To help you navigate these changes, here are the key provisions of the Worker Protection Act that you need to be aware of:

  • Immigration officers now have the authority to request employment documents to verify compliance with visa conditions and employment laws. Employers are required to provide these documents immediately, or within 10 working days if immediate compliance is impractical. These documents include wage and time records, leave records, and employment agreements. Ensuring these records are accurate and readily available is essential.
  • The Act facilitates information sharing between immigration officers and other regulatory agencies, such as the Inland Revenue Department (IRD) and WorkSafe. This provision ensures comprehensive oversight and compliance across various legal frameworks, highlighting the importance of maintaining consistent and lawful employment practices.
  • Employers can face substantial penalties for non-compliance. Infringement offences include allowing someone to work without the right to do so, employing individuals contrary to visa conditions, and failing to provide required documents. Penalties range from fines of $1000 to $3000 per infringement, with maximum fines doubling in court proceedings. Understanding and adhering to these requirements can help avoid costly penalties.
  • To promote compliance and transparency, the names and details of employers convicted of offences or issued infringement notices can be published. This includes the nature of the offence and any restrictions imposed. This public disclosure serves as a strong deterrent against non-compliance and emphasises the importance of lawful practices.

What Are Your Responsibilities?

As an employer, it’s essential to ensure that you provide written Employment Agreements. These are mandatory for all employees and should be comprehensive and clear. Similar to tax records, employment records must be kept for a minimum of six years. This includes detailed records of wages, hours worked, and leave taken. Additionally, you must comply with minimum employment standards. This includes paying at least the minimum wage, providing rest and meal breaks, and ensuring entitlements to leave (sick leave, bereavement leave, parental leave, and public holidays) are honoured.

Recognising Migrant Exploitation

Recognising the signs of exploitation is crucial for ensuring the well-being and fair treatment of migrant workers. Exploitation can manifest in various ways, often starting with the absence of written employment agreements. Workers may also be required to pay fees to secure their jobs, which is another red flag. In some cases, migrant employees are forced to return part or all of their wages to their employer, receive too little or no pay for their work, or are not compensated for all hours worked.

Additionally, some employers may ask workers to falsify their working hours, impose excessive working hours without appropriate breaks, or deny them time off altogether. Lack of payment for public holidays or annual leave is another common issue. In severe cases, workers might find themselves unable to leave their workplace because doors and windows are locked, or they may need to ask for permission to eat, sleep, or use the toilet.

Exploitation can also occur when an employer forces an employee to perform unrelated tasks, such as cleaning their home, or threatens to report them to Immigration New Zealand. Other indicators include making employees work more hours than their visa allows, providing accommodation as part of wages but charging more than legally allowed, and threatening the employee or their family with harm. Employers keeping employees’ passports is a further serious sign of exploitation.

Understanding these signs and taking action to prevent and address exploitation is vital for maintaining ethical standards and ensuring the rights of all workers are upheld. With Employment New Zealand ramping up its oversight, it is more important than ever for transport operators to adhere to these regulations. Compliance not only helps avoid penalties but also maintains the trust and integrity of our industry.

For more information and guidance on how to meet these obligations, please call our team on 0800 338 338 or visit Employment New Zealand here – Migrant exploitation » Employment New Zealand.

– By Carol McGeady, COO, New Zealand Trucking Association