Nail salons and massage parlours targeted in MBIE’s crackdown on labour breaches

Surprise inspections to be carried out at nail salons, other beauty sector employers

Nail salons and massage parlours targeted in MBIE’s crackdown on labour breaches

The Ministry of Business, Innovation, and Employment (MBIE) is carrying out surprise inspections in New Zealand's North Island as part of a crackdown on non-compliance with minimum employment standards and immigration requirements.

Compliance and enforcement teams from the MBIE are focusing on nail salons and massage businesses in Waikato, Bay of Plenty, Gisborne, Hawke's Bay, Manawatū-Whanganui, Taranaki, Wairarapa, and Wellington regions following a rise in complaints and referrals.

"The beauty sector has seen a rise in complaints and referrals, especially in the Waikato and Wellington areas," said Margaret Meafua, labour inspectorate compliance manager for the Central region, in a statement.

"We expect that most businesses are doing or want to do the right thing, but there are some concerns about possible links between some beauty industry businesses and organised criminal activity, including money laundering."

Under the inspections, the Labour Inspectorate is also assessing business compliance with employment obligations, such as employment agreements, record-keeping, lawful deductions, and minimum entitlements.

A range of enforcement tools may be used for identified breaches, such as infringement notices, enforceable undertakings, and penalties through the Employment Relations Authority.

MBIE's Operation Antic

The inspections are part of Operation Antic, which is part of MBIE's efforts to disrupt organised criminality and serious non-compliance from employers. It involves Labour Inspectorate teams supported by employees from Immigration NZ.

In October, nail salons and other beauty sector businesses in the Wellington CBD and in the Hutt Valley were visited, along with some businesses in the Bay of Plenty, under the crackdown.

MBIE said it is still assessing the data collected in these operations, and cannot provide details of issues identified.

"Our teams will have a clearer picture of areas where non-compliance most needs to be addressed once this data has been processed and analysed," Meafua said.

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