The Inspectorate's Natalie Gardiner said employers who did not have basic employment records in place could be handed an infringement notice by an Inspector of $1000 per breach, all the way up to $20,000.
While inspectors were yet to visit dairy farmers in Northland in this operation, she said they must be prepared and to sort out their employment and time records.
"And if we do we will be there with additional enforcement tools, such as infringement notices, which could leave farmers with up to a $20,000 penalty if they're caught with multiple breaches.
"These are random visits to farms and this will be happening across the country- all farmers should be prepared for an Inspectorate visit," she said.
Ms Gardiner said farmers who were compliant have nothing to worry about.
She said time, wage, holiday and leave records and a written employment agreement were foundations of a good employment relationship.
In July, the Employment Relations Authority ordered a Whangarei sharemilker to pay two labourers nearly $33,000 in wage arrears and lost remuneration. The sharemilker did not keep wage and leave records.
MBIE encourages anyone concerned about their employment situation, or the situation of someone they know, to call its contact centre on 0800 20 90 20 where their concerns will be handled in a safe environment.
Further advice on employment obligations can be found on Employment NZ.