Is Your Business Ready for an MBIE Audit?

Published 24 June 2026 | 3 min read

Recent enforcement activity by the Ministry of Business, Innovation and Employment (MBIE) sends a clear message to employers: compliance is under increasing scrutiny.

MBIE recently led a large-scale operation targeting construction businesses across Auckland and the North Island, working alongside immigration, tenancy, and company law regulators. The operation focused on identifying unlawful practices, worker exploitation, poor record keeping, and other breaches of employment and business regulations.

While the inspections targeted the construction sector, the lessons apply to employers across all industries.

What Does This Mean for Employers?

One of the key takeaways is that regulators are taking a more coordinated approach to compliance. Information is increasingly being shared between agencies, meaning an issue identified in one area of your business could trigger wider investigations.

For employers, this means it is more important than ever to ensure employment, immigration, payroll, and business practices are compliant and well documented.

Employment Standards

Employers must ensure staff receive all minimum legal entitlements, including:

• Minimum wage
• Holiday and leave entitlements
• Correct public holiday payments
• Accurate wage calculations

Failing to meet these obligations can result in penalties and enforcement action.

Record Keeping

Accurate records remain one of the most important compliance requirements.

Businesses should be able to produce:

• Signed employment agreements
• Wage and time records
• Leave records
• Payroll information

Poor record keeping can quickly become a compliance issue, even where employers believe they are meeting their obligations.

Migrant Worker Compliance

For Accredited Employers, additional obligations apply when employing migrant workers.

Employers should regularly review:

• Visa conditions
• Employment terms and conditions
• Accredited Employer requirements
• Documentation supporting compliance

MBIE has indicated that employers who fail to meet their obligations may face suspension or loss of accreditation.

Contractors and Labour Hire Arrangements

Regulators are also paying close attention to labour hire and subcontracting arrangements.

Businesses should ensure they understand who is performing work on their sites and take reasonable steps to confirm that workers are being employed lawfully and receiving their legal entitlements.

Five Questions Every Employer Should Ask

1. Are our employment agreements current and compliant?
2. Are wage, time, and leave records accurate and up to date?
3. Have we checked our holiday pay calculations recently?
4. Are we meeting all obligations for migrant workers?
5. Could we confidently provide evidence of compliance if MBIE visited tomorrow?

The Bottom Line

MBIE's recent enforcement activity highlights a broader shift towards proactive compliance monitoring and increased collaboration between regulators.

Employers who regularly review their employment practices, maintain accurate records, and address compliance risks early are far better positioned should they face an audit, inspection, or investigation.

The best time to identify compliance gaps is before a regulator does.

Further Information

For more information about MBIE's recent construction sector compliance operation, read the original Employment New Zealand article here.