The New Zealand hospitality industry is in the spotlight as another NZ cafe business has been penalised for non-compliant record keeping as required by current legislation. The inspectorate is warning that many more cafes will be visited this year.
Between April and December of 2017, over 150 employers were placed on the public stand down list for exploitation of migrant workers introduced in April 2017 and it is NZ hospitality businesses that according to Hospitality NZ spokeswoman, Rachael Shadbolt, are frequenting the list.
For NZ hospitality businesses to be compliant with NZ employment legislation they must have accurate and accessible record-keeping and process frameworks in place to demonstrate this. Showing you are doing right by your people not only upholds minimum rights of workers and fosters healthy, competitive markets, but it also has a positive impact on your business bottom line.
National Consumer surveys (2016) show that public knowledge of dodgy or non-compliant practices and exploitation of minimum rights makes people think twice about buying goods or services from the offending business. The same goes if you are renowned for treating your workforce fairly, people are more likely to purchase and recommend your goods and services.
2018 has barely started and already several popular cafes in Wellington alone have been in the headlines for breaching employment legislation. Five Boroughs has since gone into liquidation owing staff, suppliers and the IRD over $400,000 and Espressoholic is facing fines up to $2000 and suspension from issuing migrant work visas for 6 months.
While it is recognised that most businesses are not intentionally breaking the rules, the fact of the matter is, it is difficult to keep up while managing a fast-paced business. Over January and February 2018 the NZ government has been announcing changes to New Zealand employment legislation and minimum standards with a focus on amending regulations to strengthen employee rights, collective bargaining and union rights. You can read more about the proposed amendments to Employment Relations Act here. There have also been updates to the remuneration thresholds for the essential skills Temporary work visa as of 15 Jan 2018 of which The New Zealand Restaurant Association provides a useful outline of the below changes on their website.
enableHR is a legislatively-backed HRIS solution, allowing business owners and managers to focus on people and growth, with the confidence that their workforce and Health and safety management activities are centralised. enableHR is supported by frameworks aligned with current regulations and allows records to be saved in one accessible, easy to track destination.
Are you a hospitality business or Café owner wondering what to do right now? Call us on 0800 236 2253 for a confidential discussion to find out if an online legislatively-backed HR solution can help your business stay complaint and do the right thing by your people.
