If your business employs migrant workers, staying compliant with employment law is critical. A single breach, even if unintentional, can trigger formal enforcement action that places you on Immigration New Zealand’s public “stand-down list.” Once there, you lose the ability to hire or sponsor migrant workers for months, or even years. For accredited employers, that can mean stalled recruitment, unfilled roles, and serious disruption to business operations.

The stand-down list

Immigration New Zealand keeps a close eye on employer compliance - and if you slip up, they’ll make it known. 

The stand-down list is a publicly available register that names businesses found to have breached employment or immigration law. Once you're on it, you're blocked from sponsoring migrant workers for a fixed period - typically 6, 12, or 24 months depending on the seriousness of the breach.

For accredited employers, the consequences are immediate and disruptive. Being placed on the stand-down list means losing access to your ability to get accredited and recruit migrants on the Accredited Employer Work Visa (AEWV) - a vital tool for recruiting overseas talent in industries like hospitality, aged care, agriculture, and construction.

If your business relies on migrant workers, a stand-down can hit hard. So when we begin to view this issue as a "business continuity risk" rather than just a matter of "compliance", it becomes clear that employment law breaches aren't just legal missteps - they're operational threats. 

A single enforcement action can disrupt recruitment timelines, delay projects, and leave critical roles unfilled. In a competitive labour market, that kind of disruption can cost more than just a fine. It can cost contracts, clients, and credibility.

What is a stand-down period and why should employers care?

The stand-down period is a temporary ban that prevents employers from sponsoring visa applications for migrant workers. It begins when formal enforcement action is taken such as:

• An infringement notice - issued by a Labour Inspector
• A penalty awarded by the Employment Relations Authority (or the Employment Court)
• A banning order, imposed by the Employment Court

The public nature of the stand-down list adds a reputational layer to non-compliance. The consequences, therefore, extend beyond the restriction on the ability to recruit skilled migrant workers.

While the stand-down period is fixed, coming off the list does not automatically mean that you will be eligible to gain or re-gain accreditation. Immigration New Zealand must be satisfied that you will comply with your obligations going forward, and any recent stand-down period will likely have them believing otherwise. We have seen Immigration New Zealand preventing the employing of migrants for a year or more after the end of the stand-down period, only changing once we became involved.

Common pitfalls that can trigger a stand-down

Compliance slips are easier than you think, and they can cost you more than just a fine.  In fact, even well-meaning employers can fall foul of employment law. Below, we set out common pitfalls that can and frequently do result in findings of breaches and stand-downs:

1. Poor Record Keeping - Not holding records of any complaints (and proof that you've followed correct dispute resolution procedures), no or inadequate wage and time or holiday and leave records, or even evidence that your employees may have attended Health & Safety training.
2. Underpaying Wages - Paying less than the minimum wage (even unintentionally), failing to meet obligations under the Holidays Act 2003 (regarding providing and correctly paying for annual holidays, sick leave, public holidays, etc.), keeping records of the hours worked and leave taken by your AEWV workers.
3. Hiring Workers Without Checking their Work Rights - Employing individuals on the wrong types of visas and even ensuring that if visas are employer-sponsored, that the correct roles, location, and business name are listed on them.
4. Outdated employment agreements - Failing to ensure that all AEWV workers (in fact all workers) have employment agreements and, having agreements that are not updated to reflect the current immigration and employment legislation, including missing mandatory clauses, which leads to non-compliant agreements. Beware, employment legislation changes frequently, and staying on top of changes is very important!
5. Charging "premiums" for jobs - These are often disguised as "fees" in exchange for job offers. These are strictly illegal. Not only is this an exploitative practice, but even for processes such as the "Job Check" the employer is, by law, obliged to cover costs. This also includes asking the migrant worker to pay for the firm's accreditation or job check costs, as these are costs that must be paid solely by the employer.
6. Not providing the settlement support activities - These are required to help migrant workers acclimatise to working in their new role and often within a new country or region. Some employers miss providing them as they are not something provided to all employees.

Breaches of the above kind can even have consequences beyond the business being 'stood down'. If breaches of the above kind have been substantiated and you have been involved in this, you may be personally liable for underpayments (of wages and/or holiday) and also for penalties of up to $10,000.00 per breach!

Why compliance matters beyond legal obligations

Immigration New Zealand’s framework is designed to ensure that only ethical, law-abiding employers are trusted with hiring overseas talent - and rightly so.

Migrant workers often arrive in New Zealand with the hope of building a better life. Many take out loans, sell property, leave behind businesses, and endure long separations from family. They accept these sacrifices, believing New Zealand offers stability, opportunity, and a fair shot at long-term settlement.

When employers fail to meet basic employment standards, it doesn’t just breach the law - it undermines that moral obligation. It puts workers at risk, disrupts their path to residence, and erodes trust in the systems designed to protect them. That’s why compliance isn’t just a legal checkbox - it’s a business responsibility and a moral obligation.

Our top tips for avoiding the stand-down list!

It's not only about knowing the rules - it's about embedding good practices into your day-to-day operations. We've put together our top tips (below) for employers to remain compliant and off Immigration New Zealand's radar.

1. Train your Human Resources and Payroll Teams - Consider investing in upskilling your front-line staff to understand both the immigration and employment obligations. If you're a smaller organisation, this becomes more critical. A short legal briefing (or training session) can go a long way in preventing costly mistakes.
2. Accurate Record Keeping - This is a non-negotiable. These records must be readily available if requested by the Labour Inspectorate and/or your employees. Maintain clear documents of hours worked, wages paid, leave balances and your Health & Safety and Accident Register.
3. Frequently review your agreements and policies - You must have written and compliant employment agreements in place for all your employees. Seek expert advice (if you must) to have these agreements reviewed to ensure that they include all mandatory clauses and that your terms are up to date with current legislative requirements. Make sure you have the correct settlement support in place.
4. Pay Right! - Payroll errors (even if accidental) can trigger action. Ensure that your wages meet the minimum requirements and that any overtime entitlements and holiday pay (for example) are calculated correctly. This can be particularly difficult where hours of work are variable and/or employers pay variable remuneration to employees (for example, commissions, incentives, bonus payments, piece rates, etc). Again, a short legal briefing can save you from long-lasting problems.
5. Visa conditions - Before hiring, verify that an individual's visa allows them to work in the role, location and business you're offering. Do not assume this - check! Immigration New Zealand has a handy tool for employers called "VisaView" which is free to use.

Having the right systems in place can help hugely with avoiding the stand-down list. Ultimately, the goal is to be able to operate a successful business without disruptions to your recruitment and operational processes.

Our Immigration and Employment Teams work closely together to provide a comprehensive workplace audit service designed specifically for employers.  We assess your business practices across both employment and immigration law compliance and identify risks. This includes reviewing your documentation through to ensuring you have the right types of processes in place when working with and recruiting migrant workers.

We are here to help you with solutions to manage your workforce and ensure that you remain compliant.