Ministry of Business, Innovation and Employment

The Ministry of Business, Innovation and Employment (MBIE) is the Government’s lead business-facing agency. In a nutshell, the MBIE is responsible for managing all legal, policy and government initiatives for business in New Zealand, which includes health and safety in the workplace and employment relations.

In this guide for employers, we explain the role and functions of the MBIE in relation to the workplace. Peninsula has worked with thousands of businesses in New Zealand, to navigate interaction with the MBIE in respect of employment relations and workplace health and safety.

Background

The Ministry of Business, Innovation and Employment is considered the central agency in New Zealand’s business and employment fields. It is a government body which works to develop and deliver on policy, services and regulation to promote and support business growth.

Ministry of Business, Innovation and Employment Functions

One of the tasks of the MBIE is to help businesses grow to become more competitive, and to ultimately improve job opportunities for New Zealanders.

Core functions of the MBIE includes administering Acts and regulations on behalf of the Government across a number of categories, including, immigration, employment relations and workplace health and safety

More broadly, the MBIE plays a key role in supporting business growth through a number of targeted methods directly related to the employment relationship:

• Aligning the development of skills to the needs of businesses.
• Ensuring workplaces remain fair and safe.
• Providing dispute resolution services for employers and employees.
• Overseeing compliance with health and safety and employment relations legislation.

Employment Relations Disputes - Mediation Services

The Employment Relations Act 2000 (the Act) established a framework in terms of which employers and employees can resolve relationship problems or disputes. When a employment relations issue cannot be resolved internally, the first port of call is the MBIE.

The MBIE offers a free mediation service to any employer or employee with an employment problem. The role of the mediator is to listen to both parties and provide expert advice as to each party’s legal position. Often the mediator will listen to both parties’ versions and arguments and then will break away and meet with the employee and employer separately in an effort to settle or resolve the employment problem. During these separate meetings the mediator usually advises the parties as to the merits of their case and encourages them to reach agreement with the other party. Mediation services are confidential in nature and are conducted on a without prejudice basis. The premise being that the parties can speak freely during mediation without it being used against them later.

If as a result of mediation, the parties agree to settle their dispute, the mediator, the employer and employee will sign a record of settlement. Once signed, this agreement becomes final and binding on the parties and may be enforced by them.

If mediation is not successful and the parties cannot reach agreement, the matter may be referred to the Employment Relations Authority and in limited circumstances, the Employment Court.

Labour Inspectors

Labour Inspectors are engaged by the MBIE to inspect workplaces and ensure compliance and enforcement of employment legislation.

A labour inspector has the authority to:

• Enter a workplace.
• Interview employees and employers.
• Require that the employer produces or supplies for inspection:
  • any wage and time records,
  • holiday and leave records.
  • any other document that details the employee’s pay.
  • employment agreements.
  • any other document that the inspector reasonably believes may assist in ascertaining that statutory requirements are being met.
  • records of strikes and lockouts.
• Question an employer about compliance with employment legislation.

An enforceable undertaking is where a labour inspector and an employer agree in writing that by a specific date an employer will rectify a breach in employment law. A compliance order may be issued by the Employment Relations Authority to impose penalties and enforce such undertaking if an employer fails to comply.

An improvement notice may be issued by a Labour inspector if they believe, on reasonable grounds, that an employer is not complying with a statutory provision. A compliance order may be issued by the Employment Relations Authority to impose penalties and enforce such improvement notice if an employer fails to comply.

A demand notice may be issued by a labour inspector to an employer if an employee makes a complaint or if a labour inspector believes that on reasonable grounds that an employee has not received wages, holiday pay or any other payment due under the Minimum Wage Act or the Holidays Act. A compliance order may be issued by the Employment Relations Authority to impose penalties and enforce a demand notice if an employer fails to comply.

An infringement notice can be issued by a Labour inspector in relation to an employer’s failure to keep records of employment agreements, intended employment agreements, wages and time records or a holiday or leave record in terms of the Holidays Act.

Build better businesses with Peninsula

The Ministry of Business, Innovation and Employment is a key government agency which directly influences the employment relationship in New Zealand. For Kiwi business owners, employers, and managers, it is essential to know the role and scope of MBIE. Peninsula has worked closely with thousands of business owners, supporting them in knowing their obligations and duties. We offer tailored and customised services that provide you with specific solutions for your business and industry. Contact one of our Peninsula specialists on our advice line day or night.