Rebuild highlights employment rights

The focus is on Canterbury’s employers to take responsibility for workers’ rights – especially for those more vulnerable, such as migrants.

The 2010 and 2011 earthquakes, which devastated Christchurch, resulted in 70% of the city’s buildings requiring demolition. Rebuilding Christchurch is the largest economic undertaking in New Zealand’s history, with thousands of additional workers required to get Christchurch back on its feet. Undoubtedly, for the region to fully recover, Canterbury has to be seen as an attractive place to live and work. Making sure workers are protected when it comes to their minimum employment rights is a vital part of that.

International evidence shows that rebuild operations too often result in underpaid and overworked employees. To minimise the risk of exploitation and injury, the Ministry of Business, Innovation and Employment (MBIE) has a wide-ranging programme of action under way to ensure that the rebuild goes smoothly and safely. This includes focussed work of the Labour Inspectorate, Health and Safety inspectors and Immigration New Zealand.

Taking responsibility

However, MBIE’s Labour Inspectorate regional manager Steve Watson says Canterbury employers and firms working on the rebuild need to take responsibility for what happens on the ground. He says they must play a lead role in protecting the reputation of their industries by highlighting and stamping out shabby employment practices, as these undermine Canterbury and New Zealand’s reputation as a great place to work and do business.

A strong example of business and government working together for the good of the region is The Canterbury Rebuild Safety Charter, established earlier this year and signed and endorsed by more than 55 organisations. The Charter is about making sure people come first in the rebuild and aims to see it completed as safely as possible. This includes protecting vulnerable workers and ensuring they are not at risk of exploitative labour practices.

Mr Watson says a lot of the workers in Canterbury are coming from outside New Zealand and may not be familiar with this country’s employment laws.

“The Labour Inspectorate recognises that the rebuild poses a risk of migrant exploitation. Migrant workers are a particularly vulnerable section of the workforce and are an increasing focus for the Ministry’s enforcement operations.

“The Labour Inspectorate is working with Immigration New Zealand to ensure migrant exploitation – such as paying less than the minimum wage or making people work excessive hours – does not occur in Canterbury.”

Employer penalties

There are financial penalties for not complying with employment laws of up to $10,000 for individuals and $20,000 for companies. A person in breach of the Health and Safety Act may be subject to a conviction and to a fine up to $250,000.

A conviction for exploitation under the Immigration Act 2009 carries maximum penalties of seven years imprisonment, a $100,000 fine or both. In addition, a Bill introduced by the Minister of Immigration this month will make exploitative employers liable for deportation if they gained residence during the last ten years.

But enforcement is only one part of the solution. Government agencies are also making sure there is plenty of information available to employers and workers about their requirements and rights under the law. Immigration New Zealand has produced two new guides aimed at helping migrant workers in the construction sector to settle more quickly into work and employers to prepare for the kind of challenges migrants may face that could impact on their productivity.

Employing migrants

Mr Watson says adjusting to New Zealand’s way of working may be a challenge for some migrant workers.

“Having a written employment agreement may be new to employees from other countries. It is important to provide migrant employees with an agreement, which clearly sets out employment conditions such as hours of work, rate of pay, holiday entitlements and any deductions from their wages. This will help reduce the risk of misunderstanding.

“Migrants should be encouraged to study their employment agreements before signing and to seek independent advice if they wish, with any changes to be agreed to in writing.”

Mr Watson says it’s also important for employers to have detailed signed employment agreements on file, as well as accurate time and wage records.

“Should there be any disputes in the future, or an employee is unclear about their entitlements, having up-to-date and concise records will make it easier for all parties to resolve the dispute.”

“International evidence shows that rebuild operations too often result in underpaid and overworked employees

For workers who feel they cannot resolve their concerns with their employers, including concerns about their health and safety, MBIE encourages them to make contact with the authorities, even if they’re worried about their immigration status. New policy introduced earlier this year means that in cases of serious workplace exploitation, migrants who come forward with genuine complaints will be allowed to remain in New Zealand while their cases are addressed.

“We know migrants may be apprehensive about speaking to authorities, but Immigration New Zealand and the Labour Inspectorate treat all employees fairly if a genuine complaint about exploitation at work is made.”

Mr Watson says it is essential that if people are concerned they are not receiving their minimum employment rights, or know of people in this situation, they phone the MBIE call centre on 0800 20 90 20.

Minimum employment rights include:

• Four weeks’ paid annual holidays at the end of each year of employment.
• One ten-minute paid rest break for every four hours worked plus one unpaid 30-minute meal break when working more than four hours.
• Employers must keep an accurate record of an employee’s time worked, payments, and holiday and leave entitlements.
• Employers must keep a signed copy of the employment agreement.
• Employees aged 16 years and over must be paid at least the adult minimum wage rate.
• All practicable steps must be taken by employers and contractors to ensure employee safety.
• Provision of personal protective equipment.

Where to get information:

• MBIE call centre on 0800 20 90 20
• Information on minimum employment rights www.dol.govt.nz/er
• Settlement guides for migrants working in construction www.ssnz.govt.nz/constructionguides