WK2.25 Labour hire employers accreditation (to 27/08/2017)

Note: The instructions in this section cease to be effective from 28/08/2017.

1. For the purposes of these instructions, labour hire employers are defined as employers who employ and outsource workers for short or long-term positions to third parties with whom the employer has a contractual relationship to supply labour.
2. Accreditation will be granted where INZ is satisfied that the labour hire employer:
   1. is in a sound financial position; and
   2. has human resource policies and processes which are of a high standard; and
   3. has a demonstrable commitment to training and employing New Zealand citizens or residence class visa holders; and
   4. has good workplace practices, including a history of compliance with all immigration and employment laws such as the Immigration Act 2009, the Accident Compensation Act 2001, the Minimum Wage Act 1983, the Health and Safety at Work Act 2015, the Employment Relations Act 2000, Wages Protection Act 1983, Parental Leave and Employment Protection Act 1987, the Equal Pay Act 1972 and the Holidays Act 2003; and
   5. will comply with all the requirements and obligations set out at WK2.25.1.
3. INZ will rescind an employer’s accreditation where:
   1. non-compliance, other than of a minor nature, with the conditions and obligations listed under WK2.25.1 are identified, or
   2. it considers an accredited employer's conduct has created an unacceptable risk to the integrity of New Zealand's immigration or employment laws or policies.
4. Approved employers will be granted accreditation for a period of 12 months.
5. Accreditation may be renewed on an annual basis, upon application, where INZ is satisfied that the employer still meets the requirements for accreditation set out above.
6. An employer is considered to not have a history of compliance with employment law if it fails to meet the requirements set out at W2.10.15 or is currently included on a list of non-compliant employers maintained by the Labour Inspectorate (see Appendix 10).
7. Breaches of employment standards which lead to inclusion on a list of non-compliant employers may still be considered when determining if an employer has a history of compliance with employment law, even if the employer is no longer on the list.

WK2.25.1 Labour hire employer requirements and obligations

Before accreditation is granted the labour hire company must agree to meet the following conditions and obligations for the duration of the accreditation. They must agree to:

1. offer employment agreements that:
   1. meet the employment requirements set out in WK2;
   2. exclude a trial period provision;
   3. specify a rate of pay not less than the market rate for New Zealand workers in the specified occupation (see WK2.15);
   4. contain employment terms and conditions equivalent to those of workers directly employed by the company with whom the worker is placed; and
2. ensure that any third party to whom they hire out a migrant worker has good workplace practices that align with the requirements set out under WK2.25 (b) (i-iv).

WK2.25.5 Applying for accreditation

1. Application for accreditation must be made on the INZ form Labour hire Employer Accreditation Application (INZ 1227) and accompanied by documents which demonstrate that the employer meets the requirements for accreditation set out at WK2.25 (b).
2. A fee is payable for an application for accreditation. A lower fee is payable for annual renewal of accreditation.

WK2.25.10 Determining applications for accreditation

1. In determining whether employers may be accredited, INZ will assess applications taking into account such factors as:
   1. the period for which the employing organisation has been established as a going concern; and
   2. whether the employer has an intention to maintain accreditation throughout the period of currency of any visas granted to their employees under the Essential Skills Work Instructions; and
   3. the number of New Zealand and migrant workers employed by the company.
2. INZ must be satisfied that the information and documents included in an application for accreditation are genuine and accurate, and may take any steps it determines necessary to verify such documents and the information they contain, including interviews.
3. INZ may, where necessary, seek the approval of an employer to conduct a site visit to the employer's premises.
4. INZ will consult with relevant unions and other employee representatives when determining whether an employer has human resource policies and processes which are of a high standard, a commitment to training and employing New Zealand citizens and residence class visa holders and good workplace practices.
5. Employers must consent to INZ seeking information from the Ministry of Business, Innovation and Employment, Worksafe New Zealand and the Accident Compensation Corporation concerning the applicant's compliance with New Zealand employment laws. Where such consent is not given an application for accreditation will be declined.
6. INZ will seek the consent of the employer for the disclosure of any information where any information is:
   1. identified by the employer as commercially sensitive; and
   2. that information is provided in confidence to INZ; and
   3. INZ considers that disclosure of that information is necessary for the determination of an application;
7. If consent under (f) is not given, an application for accreditation will be declined.
8. Where INZ, in consulting with other agencies, receives information which may be prejudicial to the positive outcome of an employer's application for accreditation, that adverse information will be put to the employer for comment before a decision is made on their application.

WK2.25.15 Non-compliance of labour hire employer accreditation requirements and obligations

Where non-compliance, other than of a minor nature, with the conditions listed under WK2.25.1 has been identified, the following process will occur:

1. INZ will suspend the processing of any work visa applications related to an existing labour hire accreditation immediately.
2. The non-compliant employer will be advised in writing of the suspension and will be sent a report detailing the non-compliance, and will be given 30 days to remedy the non-compliance.
3. Resolution (or satisfactory progress towards resolution) of the non-compliance to the satisfaction of INZ within the 30 day period will see the suspension lifted and processing of related work visa applications will resume.
4. The Ministry of Business, Innovation and Employment may conduct an audit three to six months later to assess the effectiveness of the remediation undertaken. If the remediation is deemed inadequate or ineffective, the suspension can be re-imposed.
5. If INZ is not satisfied that the non-compliance has been addressed or satisfactory progress has been made towards resolution within the 30 day period, the suspension of related work visa processing will continue (until resolution occurs).
6. Failure to address or make satisfactory progress towards resolving the non-compliance may result in the current accreditation being rescinded, current work visa holders becoming liable for deportation, and any future accreditation applications being declined.

Note: INZ may rely on the advice of the Ministry of Business, Innovation and Employment - Labour Inspectorate in determining whether resolution has been reached or satisfactory progress has been made towards resolution.

Effective 01/04/2017