Some of the employers may be taken to the Employment Relations Authority.
Labour inspectors visited 29 dairy farms in nine regions. At least 50% of the farms were targeted due to likely non-compliance.
The level of non-compliance discovered was “extremely high”, says Natalie Gardiner, MBIE labour inspectorate central regional manager. Many farmers still do not keep accurate time and wage records that comply with legislation.
Most breaches related to poor record keeping but several farms were breaching minimum wage rules. Nine serious cases may end up with the Employment Relations Authority.
“The ministry takes seriously the exploitation of workers and is [cracking down on it],” says Gardiner. “Breaches will be subject to compliance action and potential penalties of up to $10,000 for individuals and $20,000 for companies.”
DairyNZ spokesman Mark Paine says the industry must lift its performance. “These latest findings point to a number of farmers still not meeting the minimum requirements… disappointing because we’ve been doing a lot of work with our farmers in this area.
“Employment conditions on dairy farms are critical to attracting and retaining talented people. Many farmers are making progress. But… we still have a way to go before minimum standards are achieved in the entire sector.”
DairyNZ is working with Federated Farmers and others to develop a quality workplace, holding training workshops and developing online farmer advice and resources.
Snared farmers not necessarily dodgy
It's probably unfair to suggest that dairy farmers caught out by MBIE during its crackdown on employment conditions are deliberately disadvantaging workers, says Rose Powell, director of Fourth Monkey Ltd, HR and business advisory services.
But employment law is not optional and ultimately it protects businesses and employees, says Powell.
The breaches uncovered by the MBIE investigation suggest that in the dairy industry, customary practices and tradition have often determined the approach to employment and record keeping, Powell says.
“Employers must get the essentials right and in this technological age it can be relatively easy to keep electronic employee records.”
The ‘must dos’ to be compliant are:
Retain for six years all records of employee wages, times worked, holiday and leave, and make them available to employees, their unions and labour inspectors if requested
Pay workers in cash – not in ‘kind’— by cheque or currency, or credit transfer to their agreed bank account
Ensure your people are entitled to work in New Zealand.
Agree in writing the terms of employment, the reasons for any fixed term and why the employment will end, the wages and agreed hours of work (these can be flexible)
Understand the Holidays Act: casual workers can be paid 8% of wages as they go, as holiday pay; seasonal or fixed-term employees are paid 8% at the end of the term.
Sick pay and bereavement leave applies to all workers (except contractors) after six month’s employment, as does parental leave (depending on hours worked).
