Immigration Employment Infringement Scheme Nets $431,000 in Penalties in First Year, Holding Non-Compliant Employers Accountable
Auckland, New Zealand – A significant crackdown on immigration violations in the employment sector has seen 139 employers across New Zealand issued with 142 infringement notices in the first year of the Immigration Employment Infringement scheme. The Ministry of Business, Innovation and Employment (MBIE) confirmed today that these breaches, which include employing individuals in violation of their visa conditions or those unlawfully present in the country, have resulted in a total of NZD $431,000 in penalties. The scheme, designed to ensure employers adhere to immigration laws when hiring migrant workers, is also impacting the ability of non-compliant businesses to recruit foreign talent in the future.
The introduction of the Immigration Employment Infringement scheme has provided MBIE with a more efficient and effective mechanism to address lower-level immigration offending, according to Acting General Manager, Immigration Compliance and Investigations, Michael Carley. Prior to the scheme’s implementation, the tools available to address such breaches were limited. Now, employers face tangible consequences for failing to uphold their responsibilities when employing migrants. “Before the scheme, there were limited tools for us to use to address lower-level immigration offending,” stated Mr. Carley. “Now, employers can no longer claim they are unaware of the rules of hiring migrants, nor can they rely on their past compliance to escape the consequences. There are serious penalties for those who fail to follow immigration laws.”
The data from the first year of the scheme reveals key sectors where non-compliance is most prevalent. Mr. Carley highlighted that the top three industries receiving the highest number of infringement notices are construction, hospitality, and the beauty industry. This indicates potential systemic issues within these sectors regarding the understanding and adherence to immigration regulations. While the majority of infringement fees have ranged between NZD $1,000 and $3,000, the scheme has also identified and penalized more egregious instances of exploitation and non-compliance.
Notably, two of the largest infringement penalties issued during the year underscore the severity of some violations. A business in the mining industry was slapped with a NZD $27,000 fine for significantly underpaying a number of their migrant workers. In another significant case, a Wellington-based construction company incurred an NZD $18,000 penalty after being found to have five migrants working in breach of their visa conditions, in addition to employing one individual who was unlawfully in New Zealand. These substantial fines serve as a stark warning to employers about the potential financial and operational repercussions of disregarding immigration laws.
Beyond the immediate financial penalties, the infringement notices also carry significant long-term implications for employers’ ability to hire migrant workers. Depending on the number of infringements received, employers face a mandatory stand-down period, preventing them from hiring migrants for a minimum of six months. A single infringement notice triggers a six-month stand-down, with an additional six months added for each subsequent infringement. For multiple notices issued simultaneously, the maximum stand-down period is 12 months. During this stand-down, employers are unable to regain their accreditation or support visa applications, severely impacting their access to the migrant workforce. It is important to note, however, that employers on the stand-down list can still hire individuals holding open work visas.
While acknowledging that the majority of employers in New Zealand operate within the bounds of immigration law, Mr. Carley emphasized the importance of vigilance and due diligence when hiring migrant workers. “When hiring migrants, it’s really important that employers check that their visa allows them to work in New Zealand,” he advised. “We strongly advise that all employers use our Visa View tool to verify the work rights of prospective employees. Taking the time to conduct this check could help avoid significant financial penalties and being stood down from hiring migrants for a time.” Infringements can be issued not only for employing individuals with incorrect visa conditions or who are unlawfully in the country but also for failing to comply with a 10-day information request from immigration authorities. The minimum infringement fees are NZD $1,000 for individuals and NZD $3,000 for corporations or other entities. Furthermore, repeated or severe breaches can lead to the loss of accredited employer or Recognised Seasonal Employer status, as well as a temporary suspension from sponsoring further visas. The penalty fees collected through the scheme are directed into the Government’s Consolidated Fund.
