A Simple Compliance Check Every Employer Should Be Doing
When you're busy running a business, it's easy to assume everything is in order. Employees are turning up to work, payroll is running, and day-to-day operations are ticking along.
But when was the last time you stopped and checked that your employment records were actually up to date?
With a strong HR and compliance background, I know these types of checks are often the last thing on the priority list. However, regularly reviewing your employment records isn't just good practice, it can help you identify issues before they become bigger problems.
If you employ migrant workers, it's even more important.
Don't wait until there's a problem
One of the mistakes I come across is that employers only think about compliance when MBIE or Immigration New Zealand gets in touch. Then there is a big scramble.
The reality is that compliance should be part of your normal business processes. You could be audited or subject to a compliance check with little notice.
That's why it's worth taking the time to review your records rather than assuming everything is still correct. If you don't have the resources to carry out these checks yourself, consider getting an external provider to complete them for you. I've completed many compliance reviews for my clients, and a fresh set of eyes often picks up simple issues that have been overlooked during the day-to-day running of the business.
Start with the basics
A good place to begin is by reviewing your employment records.
Ask yourself:
Are employment agreements signed and on file?
Do you have all pre-employment documents on file, e.g. IR330, KS2 and KS10 forms?
Are wage and time records accurate?
Have changes to pay, hours or duties been documented?
Do you have emergency contact information for all employees?
Did employees sign a deduction authority before any deductions were made from their wages?
Have you checked that the driver's licences you have on file are still current?
Keeping these records organised makes it much easier if you're ever asked to provide information.
If you employ migrant workers, there are additional checks
Employing migrant workers comes with extra responsibilities.
It's not enough to check someone's visa before they start work and then file it away.
It's important to make sure:
Their visa is still valid.
They're working in the approved role.
They're still working in accordance with their visa conditions.
Any changes to their employment have been reviewed before they're implemented.
A VisaView check was completed before employment commenced.
You have evidence that settlement information was provided to Accredited Employer Work Visa (AEWV) holders.
You are meeting all your AEWV employer obligations (if applicable).
What if a migrant worker's visa is due to expire?
One of the easiest ways to avoid last-minute stress is to keep track of visa expiry dates.
If you notice an employee's visa is due to expire in the next few months, don't leave it until the last minute. Have a conversation with them early about their plans and whether they intend to apply for a new visa.
Planning ahead gives both you and your employee time to prepare, helps avoid unnecessary disruption to your business, and reduces the risk of an employee unexpectedly losing their right to work.
This can also be a good opportunity for the employee to speak with a Licensed Immigration Adviser. In addition to helping with their next visa application and checking maximum stay requirements, an adviser can assess whether they may be on a pathway to New Zealand residence and identify any steps they should be taking now to support their long-term goals. Having that conversation early can help both the employee and employer plan with more certainty for the future.
Make spot checks part of your routine
I recommend carrying out a simple spot check of your employment and immigration records every six months.
It doesn't need to be a full audit. The aim is simply to make sure your records are current and identify any issues before they become bigger problems.
I'd also ask whoever manages your payroll to carry out a spot check every six months. I've seen many situations where average daily pay or annual leave has been calculated incorrectly because of a simple set-up error. Something as straightforward as entering an employee as permanent instead of casual can create ongoing issues that aren't discovered until much later. It's an easy mistake to make, but it can create a real mess if it's not picked up early.
Setting a recurring reminder in your calendar every six months can make this a simple part of your business processes and help you stay on top of your obligations.
My final thoughts
Most employers want to do the right thing. In my experience, compliance issues are rarely the result of someone deliberately doing the wrong thing. More often than not, someone has inherited the role without the right training, or they've been doing the job the same way for years and no one has ever checked whether the processes are still compliant.
Taking a little time to review your records can give you confidence that your business is meeting its obligations and help identify any issues before they become bigger problems.
To help employers get started, I've put together a free Employer Compliance Self-Assessment. It's a practical checklist you can work through every six months to review your employment and immigration records and identify any areas that may need attention.
If you'd like a copy, email me at jo@navigateimmigration.co.nz.
If you don't have the time or resources to complete these checks yourself, I'm also happy to carry out an independent compliance review and help identify any potential issues.
Feel free to reach out to Navigate Immigration Services, I'm happy to talk through your situation and help you become confident in compliance.
📧 jo@navigateimmigration.co.nz 📞+64 27 477 2088
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