Federated Farmers Employment spokeswoman Katie Milne said the law is the law.
"There's no excuse for deficient time recording or having no employment agreement," she said. "If there is a positive we can take, it is that 36 out of 44 farms inspected had adequate employment contracts. This tallies with the 83.5 per cent found in the 2013 Rabobank/Federated Farmers Farm Remuneration Report.
"It must of course get to 100 per cent but the biggest concern is that MBIE found there was widespread failure to adequately record time and holidays.
"Failure here can quickly put your business into employment law quicksand."
She urged their members to make use of their industry standard employment contract, which costs $60.
"Calling 0800 327 646 or getting one from fedfarm.org.nz seems a ridiculously small price to pay when the penalties are up to $20,000.
"This industry standard contract includes comprehensive notes on the minimum wage, holidays act, seasonal averaging, accommodation and the like.
"We can add our 0800 FARMING line, which provides free legal advice to members. If you are a member please use it because it is there to help you out," Ms Milne said.