The Dunedin-based MP yesterday said employers were the backbone of the economy and most did a great job in meeting their employment obligations.
But there were serious breaches occurring.
''Those who breach minimum employment standards have an unfair advantage over law-abiding employers and it is unfair on employees who work hard to support their families.''
Stronger sanctions for serious breaches would send the message bad behaviour was unacceptable, Mr Woodhouse said.
The package targeted the worst transgressions of employers, without imposing unnecessary compliance costs on employers in general.
Key changes included tougher sanctions, increased tools for labour inspectors and clear record-keeping requirements.
The changes meant a more robust employment standards system where all businesses were operating on an equal footing, Mr Woodhouse said.
It also meant any anti-competitive behaviour occurring when employers breached minimum employment standards was detected and sanctioned.
''The Government is particularly concerned about the exploitation of our most vulnerable workers, such as migrant workers.''
Otago-Southland Employers Association chief executive John Scandrett said the association was comfortable most of its long-standing recognised employers in this part of the country knew what was required around compliance across minimum labour standards.
''However, we can't ignore a recent report that in the Queenstown area, if the information is accurate, 40-plus businesses were audited since last November, and approximately 44% of those were identified as having some form of employment standards shortcomings.
"It is likely that those underperforming organisations largely represent the newly-established smaller market segment.''
The association supported the overall thrust of the moves announced but it would still be interested to see the detail of the draft legislation.
With the association's close involvement on important workplace issues, it was in a strong position to make suitable submissions, Mr Scandrett said.
Mr Woodhouse said the changes proposed delivered on the Government's commitment to strengthen the enforcement of minimum employment entitlements.
The key changes would be reflected in an Employment Standards Bill being introduced to Parliament later this year.
Council of Trade Unions secretary Sam Huggard said the package of changes to minimum employment standards was a good start, but did not address evidence of a system that was failing New Zealanders - from migrant workers paid a fraction of the minimum wage to petrol station attendants forced to pay for customer thefts.
Stronger sanctions for employers who exploited workers were long overdue, he said.
''The elephant in the room is: who is going to enforce these minimum standards? There are only 41 labour inspectors for the whole workforce.''
Inspectors were unable to deal with complaints in a timely fashion or, in some cases, at all, he said.
Workers in New Zealand were often vulnerable and the Government had made them more so.
Workers on a 90-day trial period or a zero-hours contract were unlikely to ask about not getting holidays let alone getting the minimum wage, he said.
