Accredited employer status is a critical requirement for hiring migrant workers in New Zealand. It serves as a guarantee that the company meets specific standards to protect workers’ rights. But what happens when an accredited employer loses their accreditation due to an infringement offence? More importantly, what happens when key individuals involved with such offences move to other companies? If you’re an employer or employee navigating accreditation rules, this is something you need to fully understand.
When a company is issued an infringement notice related to employment law, their accreditation is automatically revoked. This action underscores New Zealand’s commitment to ensuring fair treatment for all workers, especially those on visas. After revocation, that business can no longer act as an accredited employer, which significantly impacts their ability to bring in skilled workers from overseas.
But that’s not the end of the matter. What complicates things is when key people like directors or managers from these companies move on to other businesses and potentially take their compliance issues with them. This is where Immigration New Zealand’s (INZ) rules become even more important.
Under INZ guidelines, particularly WA2.10.15 and WA2.10.10, key people who have been part of revoked organisations are closely monitored. Their involvement in new businesses can affect the accreditation status of those companies, especially if the same compliance issues are likely to arise.
Here are the key scenarios in which accreditation for a new business may also be revoked or denied:
If the new business is substantially the same as the company that was previously revoked, it will face consequences. This happens when the new company has the same or substantially similar personnel, operations, or ownership. INZ takes this seriously to ensure that businesses cannot simply rebrand or restructure to sidestep non-compliance penalties.
Example
Imagine Company A loses its accreditation after being issued an infringement notice. Key directors and managers from Company A then establish a new entity, Company B, using the same premises and continuing largely the same work. INZ may view Company B as substantially the same organisation and refuse accreditation.
Accreditation may also be denied if the infringement notice was issued directly to an individual, such as a company director, or if their actions contributed to the non-compliance. When these people take on significant roles in new companies, their history follows them. However, these businesses might regain eligibility to apply for accreditation once any stand-down period ends and they can show the underlying issues have been fully addressed (WA2.10.10e).
Example
A manager at Company A deliberately breaches minimum wage requirements, leading to an infringement notice. If this individual joins Company C as a key person, Company C’s accreditation could be revoked unless they can demonstrate robust safeguards to prevent similar misconduct.
INZ is particularly cautious when a key individual has a history of multiple breaches. If someone has been involved in at least two organisations that failed to comply with accreditation requirements, their presence in a new company raises red flags. Accreditation may be revoked or denied if the new company can’t prove adequate measures have been taken to ensure compliance going forward.
Example
A director who oversaw breaches in two prior companies becomes involved in a new business applying for accreditation. INZ may require extensive evidence—such as a new compliance framework or independent oversight—before approving the application. Without these steps, the new company may face the same penalties and lose its accreditation.
Employers looking to hire migrant workers must understand the gravity of these rules. Businesses involving key people with a history of non-compliance need to go above and beyond to demonstrate they are taking compliance seriously. Here are some steps that can help:
Establishing clear policies and independent audits can show INZ that issues have been resolved and will not recur.
Acknowledge past issues and provide evidence of how they’ve been addressed. Proactive communication always goes a long way.
Ensuring that all personnel, especially managers and team leads, are fully trained in New Zealand’s employment laws and accreditation requirements can prevent further incidents.
Hiring external advisors to validate compliance initiatives can add credibility to your commitment to meeting INZ standards.
For employers, maintaining accreditation is critical—not just for staying compliant but also for continuing to contribute effectively to New Zealand’s dynamic workforce. Companies must prioritize employee rights, and those who don’t will find INZ taking swift and decisive action. Understanding and addressing these rules is essential for any business looking to retain or secure accreditation status.
Vandana Rai is a Senior Licensed Immigration Adviser and has built a reputation around her rare set of skills, which could be considered ideal for her legal profession.