UPDATED 6:37pm: Punishments are to be toughened for employers who break minimum employer standards.

Workplace Relations Minister Michael Woodhouse has announced the move today saying employers who break the rules have an unfair advantage over those who follow the law.

The changes will see a five fold increase in fines for those found guilty of exploitation charges.

The maximum fine for an individual is to raised to $50,000. For a company It will be increased to $100,000.

Woodhouse says it'll cover things like the minimum wage and fair holidays.

"Record keeping is a very important barometer, I think, of compliance with those minimum standards. Those employers that don't keep good records are often those breaching those minimum wage and holiday act standards."

Penalties for less serious breaches will be kept at their current levels.