Immigration construction industry investigation results in $45,000 in fines

Tuesday, 8 May 2018

Immigration labour inspectors will visit more building sites this year in an effort to stamp out migrant worker exploitation.

Immigration officers have visited 17 building sites this year as part of an ongoing investigation into the use of illegal migrant workers and their rights by the construction industry.

Auckland firm Setia Construction, investigated by Immigration New Zealand in 2016, was fined $19,000 by the Employment Relations Authority (ERA) this month.

Setia's contracts for migrant workers were unlawful. Workers were not paid the minimum wage and were not entitled to holiday or job termination pay.

An immigration operation, dubbed Spectrum, uncovered 10 labour-hire firms that were smuggling and supplying illegal Malaysian workers to Auckland construction sites earlier this year.

* Construction crackdown after investigation unveils illegal Malaysian worker network

* Legal loopholes allow for 'disgraceful' labour-hire worker exploitation**

Labour inspectorate regional manager David Milne said investigations into the construction industry were ongoing. Immigration would continue to visit building sites across New Zealand.

'In construction whether you have 10 employees, or 10,000, your compliance with employment law should be as solid as the foundations of the houses you're building.

'[We] will not hesitate to take enforcement action where we see employers failing to provide workers with their minimum entitlements.'

Issuing an improvement notice was the most common action Immigration enforced on errant construction firms.

The notice explained how the company breached the law and gave them a timeframe to comply, Milne said.

If they failed to do so Immigration could apply to the ERA for a compliance order or penalties.

Labour inspectors had made seven applications to the ERA since 2016.

They visited 95 building sites last year.

Of the 112 visits this year and last, 71 enforcement actions had been taken resulting in $45,000 in fines.

The actions included 27 improvement notices and 19 infringement notices issued by labour inspectors.

Infringement notices were for fines of between $1000 and $20,000 for failing to keep employment records.

The actions also included 18 enforceable undertakings made voluntarily by employers to fix their breach of employment law within a certain timeframe, Milne said.

Similar to an improvement notice, the ERA could issue a compliance order or penalties if it did not comply within the given time.