Compliance Vulnerability List

With increased attention on compliance in the casual and temporary landscape, we have created a simple list of compliance vulnerabilities and risks to be aware of. 

Underpaid Wages

Make sure you are paying at or above the minimum wage

The minimum wage in New Zealand applies to all hours of work–businesses must ensure they are paying at or above the minimum wage. 

Correctly categorise Employees vs Contractors 

As an employer, it’s crucial that you are correctly classifying your workers as employees or independent contractors to avoid entering into a sham contracting agreement. 

The most common reason businesses partake in sham contracting is to avoid paying employee entitlements and obligations–such as minimum wages, PAYE Tax, sick leave and paid public holidays.

Read this article to learn more about the difference between an employee and an independent contractor. 

Payday Filing

Payday Filing is now mandatory for all businesses and means that you will need to report your employee payments to the Inland Revenue Department on the day of your pay run.

You can read more about this here.


Before the Employment Relations Amendment Act, 2018 was passed, there were no specific rules for when or how long rest and meal breaks should be. 

Changes to breaks came into effect on the 6th of May 2019, setting precise break lengths depending on the hours that an employee has worked. 

Read more about this here.

Non-existent contracts & policies


Having up to date employment agreements can help protect you from compliance vulnerabilities, by outlining expected behaviours and agreements between you and your employee. 

Failure to ensure the employment agreement is in writing may result in a fine of $1,000 per employee.

An agreement covers items such as minimum wage and annual holidays. 


Policies also outline expected behaviours and agreements between you and your employees. 

They can include, but are not limited to:

  • Health and Safety
  • Workplace change
  • Lateness and Absence
  • IT Usage
  • Conflicts of interest
  • Accepting gifts 
  • Flexible worker 
  • Performance issues
  • Overtime etc

Read more about workplace policies here

Workplace Health & Safety 

Workplace Health and Safety is about protecting workers from harm at work. The New Zealand Health and Safety at Work Act 2015 and related regulations apply to employees and contractors. 

The Act and related regulations require that workers and others are given the highest level of protection from workplace health and safety risks. These risks include both physical and mental health.

Employment NZ states that organisations must provide appropriate training and information for workers so that they can work safely.


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