What to expect in the New Zealand immigration space in 2024.
The 2023 General Election resulted in New Zealand’s first three-party coalition government. The three parties proposed very different policies in their 2023 election campaigns. The coalition agreements provided some clues as to what we could expect. The devil is always in the details of immigration policy. Unfortunately, the coalition agreements haven’t given us the details to understand what will happen to the Accredited Employer Work Visa (AEWV). Fortunately, we will not have long to wait as Erica Stanford, the Minister of Immigration, has advised in a recent TV interview that further announcements are likely in the next month.
Skills
The Prime Minister and Minister of Immigration have commented on AEWV holders' skill level. In 2023 52% of AEWV applications were based on jobs with an ANZSCO skill level of 4 or 5. ANZSCO is a job classification system where skill levels are assessed from 1 to 5, with level 1 being the highest and level 5 being the lowest. The Minister of Immigration has advised they intend to reverse this, with half of AEWV applicants being skill levels 1 and 2, similar to what it was under the former Essential Skills policy when the National Party were last in power.
Labour Market Test
The Labour Market Test is the process an employer must undertake to prove no New Zealanders are available to take up a position an employer wants to fill with a migrant worker. This process is part of the Job Check in the AEWV process and was previously required under the Essential Skills Work Visa.
The Minister of Immigration stated she is unsatisfied with the current Labour Market Test rules. Under the previous policy, employers of lower-skill positions (ANZSCO 4 and 5) generally had to consult with Work and Income and advertise the position to confirm no New Zealanders were available. However, the Work and Income consultation was abolished under the AEWV policy. The Minister made comment about employers only having to declare no suitable New Zealanders were available with no proof under the AEWV policy, which employers had to previous prove in the Essential Skills process.
Median Wage
The AEWV also requires most migrants to be paid at least the median wage (some exceptions in specific jobs apply). When the AEWV was launched in 2022 the median rate was set at $27.76 per hour, this increased to $29.66 per hour in February 2023. The previous government had advised an increase to $31.61 per hour in February 2024 however that was abolished in late December 2023 by the new government. The intention of the median wage was for it to be a tool for setting a specific level of skill. The historically low post Covid-19 unemployment rates meant this idea failed as employers were desperate for staff. It resulted in some migrants being paid more than the equivalent kiwi worker and further cost pressures on employers. The previous Essential Skills policy required employers to pay market rate, the equivalent to what a New Zealander would be paid. The Minister has made it clear she intends to abolish the median wage requirement.
Predictions for 2024
The Minister of Immigration has advised further updates in the next month however, my predictions are as follows:
A focus on skilled positions, with ANZSCO having a bigger focus on assessing job suitability.
Thorough checks for accredited employers, especially those in the labour hire industry.
Work and Income engagement required for lower skilled Labour Market Tests.
The requirement for an employer to prove they cannot find suitable New Zealanders to fill positions.
The abolishment of the median wage.
Migrant Exploitation.
Over the past few weeks the New Zealand media have reported on the shocking allegations of migrants paying for job offers from accredited employers. Migrants are arriving in New Zealand only to find they don’t have a job at all. Stuck in New Zealand with little to no money or access to any social welfare, they have been forced to live in squalid conditions with up to 30 in a three bedroom house.
How is this happening?
When an employer wishes to support a work visa, they must be accredited and have a valid job check. To be accredited, employers must be financially viable and compliant with employment and immigration law. Job checks declare the skills and qualifications required, review employment documentation (such as employment agreements), and, in most cases, require the employer to advertise the position to prove no New Zealanders can fill their vacant positions. A job check can include multiple vacancies in the same position an employer is trying to fill. If approved for a job check, an employer is given one job token for each vacancy they stated in their job check. Employers then issue job tokens to migrants so they can apply for a work visa.
Employers with high volume, third-party or franchisee accreditation have no limit on how many migrants they can support under the accredited scheme. It appears the migrants have been purchased a job token from an offshore unlicensed agent. Subsequently, the work visa applications were approved, and the migrant arrived in New Zealand a few weeks later, only to have worked for a few weeks or that the job never existed in the first place.
How did it go wrong?
The Accredited Employer Work Visa was only introduced in July 2022, as New Zealand’s borders reopened after the Covid-19 pandemic. Before this, employers did not need to be accredited except labour-hire companies operating in Canterbury. New Zealand’s low unemployment rate is impacting the productivity of the economy. At the same time, Immigration New Zealand implemented a new online portal, ADEPT, which was having major technical issues and outages, including documents and applications disappearing. Immigration New Zealand had a new immigration policy to grapple with, a surge of accreditation applications from employers desperate for workers and multiple IT system failures.
Media at the time were commenting on delays and IT issues, resulting in pressure to speed up their decision-making process. Immigration New Zealand took a light touch approach, meaning most accreditation applications required an employer to declare their financial and legal compliance with little to no evidence. It appears that, sadly, a small percentage of employers took advantage of this light touch approach.
What to do if you suspect a migrant is being exploited?
The Ministry of Business Innovation and Employment define migrant exploitation as behaviour that causes or increases the risk of material harm to the economic, social, physical or emotional well-being of a migrant worker. This includes breaches of minimum employment standards or breaches of health and safety and immigration laws. This excludes minor and insignificant breaches that are not constant and easily remedied.
Anyone can report migrant exploitation and can do so online at https://reportmigrantexploitation.employment.govt.nz or call 0800 200 088.
Migrants might be eligible for a Migrant Exploitation Protection Work Visa for up to six months. This visa allows a migrant to work for any employer for up to six months, giving them time to find a new employer who may wish to support a new Accredited Employer Work Visa application.
What should accredited employers be doing?
Apart from being compliant with employment and immigration law, accredited employers should ensure migrants are working according to the conditions in the employment agreements and visas. This includes being paid the correct remuneration, conducting tasks in their job descriptions and working in the region/s where the visa has been approved. Employers should have completed the Employment New Zealand employer modules and migrants employee modules on paid time. Employers should keep records of wages and time, their settlement activities and completion of employer and employee modules.
If an employer is using an offshore recruitment agency, do your research and conduct your own checks on migrant job applicants. If possible, use a reputable New Zealand recruitment agency that has experience recruiting offshore.
Summary
The overwhelming majority of employers do the right by their migrant staff. Migrant exploitation should be reported to Employment New Zealand. Accredited employers should comply with accreditation obligations, ensure their migrant workers are working to the conditions of their visas and maintain compliance records. We can help if you suspect migrant exploitation or are an accredited employer who wants to make sure they are meeting their accreditation requirements. Contact us today for further information.
How to advertise for a Job Check.
Many employers are struggling with the advertising requirements for the Job Check process. Advertisements must include specific, detailed information that might not usually be included when advertising for staff. Job advertisements need to be placed on a platform that New Zealanders are likely to look at, need to have been advertised for at least 14 days, and the job advertisement must have closed within the previous 90 days.
Job advertisements must include the following:
A description of the main tasks and duties.
The terms of employment, is the position permanent or fixed term?
The minimum and maximum hourly rate or an annual salary, stating “negotiable”, is unlikely to be accepted. A range can be used.
Bonuses, commissions or piece rates if they make up a significant portion of the remuneration. If they are not guaranteed, then they will not be considered as part of the employee’s pay when Immigration New Zealand assesses whether the remuneration requirement has been met.
The minimum hours per week.
The location of the work.
The skills and work experience required (quantify this in months or years) and/or the qualifications required.
If advertising is not completed correctly, then employers run the risk of delays to the Job Check process as they may have to start again. If you need any assistance, reach out today.
Navigating Employment Risks: A Guide for Employers.
Introduction:
Hiring and terminating employees are crucial aspects of running a business, and New Zealand employers must be aware of the potential risks associated with these processes. Effective human resource management requires a thorough understanding of employment laws and the implications of non-compliance. In this blog, we will explore the potential risks employers in New Zealand face when hiring and terminating employees, along with some proactive steps to mitigate these risks.
Hiring Risks:
a) Discrimination Claims:
Discrimination claims can arise if an employer demonstrates bias or treats job applicants unfairly based on protected characteristics. To mitigate this risk, employers should establish standardized recruitment processes that focus solely on qualifications, skills, and experience relevant to the position. It is crucial to avoid making decisions based on age, gender, race, religion, or disability. Ensuring transparency and consistency throughout the hiring process helps build a diverse and inclusive workforce while reducing the risk of discrimination claims.
b) Inadequate Background Checks:
Conducting thorough background checks is essential to verify an applicant's credentials, work history, and character. Employers should verify qualifications, reach out to references, and perform criminal record checks, as permitted by law. Neglecting these checks can lead to hiring individuals who may not possess the necessary qualifications or have a history of misconduct. Such situations can affect team dynamics, productivity, and potentially damage the company's reputation. Implementing robust background screening processes helps mitigate these risks.
c) Poor Employment Agreements:
Employment agreements form the foundation of the employer-employee relationship. Inadequate or ambiguous agreements can create confusion and disagreement, potentially resulting in legal disputes. To mitigate this risk, employers should ensure employment agreements are clear, comprehensive, and compliant with the Employment Relations Act 2000. Clearly outline terms of employment, remuneration, leave entitlements, notice periods, and any relevant policies or procedures and include a job description. Seeking professional advice when drafting employment agreements can help ensure they meet requirements and protect the interests of both parties.
Terminating Risks:
a) Unfair Dismissal Claims:
Terminating an employee's contract without proper justification or following due process can expose employers to claims of unfair dismissal. Employment laws require employers to have valid reasons for termination and provide employees with fair notice or severance pay. Termination should follow a fair and consistent process, which may involve verbal or written warnings, performance improvement plans, or disciplinary actions. Employers should document all instances of underperformance or misconduct and provide employees with an opportunity to respond before making any termination decisions. Following proper procedures minimises the risk of unfair dismissal claims.
b) Inadequate Documentation:
Accurate and comprehensive documentation is crucial when terminating an employee. Employers should maintain records of performance issues, disciplinary actions taken, and any warnings or evaluations provided to the employee. These documents serve as evidence in case of disputes or legal claims, demonstrating that the termination decision was justified and fair. By consistently documenting all relevant interactions and maintaining a paper trail, employers strengthen their position in case of potential legal challenges.
c) Breach of Confidentiality:
When an employee is terminated, there is a risk that confidential company information may be misused or shared without authorization. Employers should have protocols in place to protect sensitive data and ensure departing employees return any company property or information they had access to. This may include revoking system access, collecting company devices, and reminding employees of their obligations regarding confidentiality. By safeguarding confidential information, employers can mitigate the risk of data breaches or competitive harm resulting from terminated employees.
Conclusion:
By addressing these hiring and terminating risks proactively, New Zealand employers can foster a fair and compliant work environment while minimizing legal and financial liabilities associated with employee management. Terminating employees in accordance with legal requirements and maintaining accurate documentation helps protect employers from unfair dismissal claims and strengthens their position in any potential legal proceedings. Contact us today if you need any assistance.
The three step Accredited Employer Work Visa process explained.
What is the new Accredited Employer Work Visa?
The Accredited Employer Work Visa is a new three-step visa system introduced in July 2022.
The employer applies to be accredited.
The employer submits a Job Check.
The migrant submits their work visa application.
Types of accreditation.
You can apply for one of four different levels of accreditation.
Standard accreditation is for standard businesses hiring up to 5 migrants.
High-volume accreditation is for standard businesses hiring 6 or more migrants.
Franchisee accreditation is for businesses that are part of a franchise. There is no limit to how many migrants you can hire.
Controlling third-party accreditation is for businesses that place migrants with third parties while being the direct employer named in the employment agreement. There is no limit to how many migrants you can hire.
What is required to become accredited?
Your organisation's requirements will vary depending on the industry you operate in and how many visas you intend to support. Generally, all organisations will need to show they are genuine organisations, do not have a history of non-compliance with employment and immigration law and have taken steps to reduce the risk of migrant exploitation.
How long does accreditation last?
Your initial accreditation lasts for 12 months before you need to renew it. An exception to this is initial accreditation periods for accredited employers will be automatically granted for 24 months if you apply for accreditation before 4 July 2023.
Once you renew it will last for:
24 months for standard and high volume, as long as it has not lapsed for 12 or more months
12 months for franchisees and employers placing migrants with controlling third parties.
What is a job check?
The job check will ensure the offer of employment is compliant with New Zealand law and meets the remuneration meets the market rate. Depending on what the job is and where the job is located, a labour market test may need to be conducted.
What will information will the migrant be required to supply with their application for a work visa?
The migrant will need to provide evidence they have suitable prior work experience and/or qualifications to fill the job they have been offered. They may also need to supply criminal and health checks.
How much will it cost?
Immigration New Zealand charges accreditation fees based on the type of accreditation. Their fees are below and include GST:
Standard: $740
High volume: $1220
Franchisee: $1980
Controlling third party: $3870
Job Check: $610
Accredited Employer Work Visa application: $750
Will employers need to be accredited for current migrants who need to apply for a new work visa?
Migrants currently on most work visas, including Essential Skills, will need to apply under a different visa scheme, and in most situations, the accredited employer category will be most suitable. Employers will need to be accredited and have a suitable approved job check to support a further visa.
Conclusion
If you have any further questions or would like to begin the process of applying to become an Accredited Employer, please do not hesitate to contact us.
Employment agreements.
Employers with 19 employees or fewer can include a 90-day trial period in their employment agreements. This period allows employers to assess the suitability of new employees for the job without the risk of an unfair dismissal claim. During this period, employers can terminate an employee's employment without reason, and the employee cannot raise a personal grievance for unfair dismissal.
However, it is essential to note that the 90-day trial period only applies if it is included in the employment agreement and agreed upon (signed) by both parties before the employee starts work. Therefore, having a comprehensive employment agreement is crucial for employers with 19 staff or less to ensure that both parties understand the terms and conditions of employment, including the 90-day trial period if appropriate.
An employment agreement is a legally binding document that outlines the terms and conditions of employment between an employer and an employee. It is an essential tool for establishing clear expectations and understanding between the employer and employee, and it helps to protect both parties from any potential disputes that may arise in the future.
For employers, having an employment agreement ensures that their expectations for the employee are clearly communicated and agreed upon. It helps to establish the employee's hours of work, wages and benefits, and any other terms and conditions of employment. Employment agreements prevent misunderstandings or disputes over pay, hours of work, and other employment-related issues.
For employees, having an employment agreement ensures that they are aware of their rights and responsibilities as an employee. It outlines the terms and conditions of their employment, including their wages and benefits, hours of work, and any other terms of employment. This can help to prevent misunderstandings or disputes over pay, hours of work, and other employment-related issues.
Employment agreements are also crucial for ensuring compliance with employment laws and regulations in New Zealand. Employers must comply with various legal requirements, including minimum wage rates, holiday and sick leave entitlements, and health and safety regulations. A clear and comprehensive employment agreement helps employers meet their legal obligations and avoid penalties and fines.
In addition, employment agreements can help to create a positive workplace culture. When employees understand their rights and responsibilities and feel valued and supported by their employer, they are more likely to be engaged and motivated. This can increase productivity, better job satisfaction, and reduced staff turnover.
In conclusion, having an employment agreement is crucial for employers in New Zealand, especially those with 19 staff or less. It ensures that both employers and employees know their rights and responsibilities, establishes clear expectations and understanding, and helps prevent misunderstandings or disputes over pay, hours of work, and other employment-related issues. Not having an employment agreement in place risks non-compliance with employment law as well as potential disputes and legal action. Employers with 19 employees or fewer should consider including a 90-day trial period in their employment agreements. Still, they should always consult experts to ensure compliance with all relevant laws and regulations.
Wage requirements for the Accredited Employer Work Visa are changing.
Median wage increases from 27 February 2023.
The New Zealand Accredited Employer Work Visa will undergo change to its wage requirements, and the new requirements came into effect on 27th February 2023. The median wage for the Accredited Employer Work Visa increased from NZD $27.76 to NZD $29.66 per hour. This change is aimed at ensuring that overseas workers are paid fairly and at the same level as New Zealand citizens and residents.
Employers who support migrants workers for the Accredited Employer Work Visa must now pay their employees the new median wage of NZD $29.66 per hour or the market rate to New Zealand citizens and residents for the same job, whichever is higher (with some exceptions). This requirement applies to most visa applicants including current visa holders whose visas are up for renewal. Most positions exempt from this requirement will need to be paying more on the same date with the exception of some tourism and hospitality positions that will have until April 2023 before increases apply.
The increase in median wage requirements may impact the job market in New Zealand. Some employers may opt to look for alternative visa options, while others may struggle to meet the new wage requirements. However, this change is aimed at promoting fairness and equality in the job market by ensuring that overseas workers are paid the same wage as their New Zealand counterparts.
In conclusion, the increase in median wage requirements for the New Zealand Accredited Employer Work Visa is a step forward in promoting fairness and equality in the job market. The new requirements will impact employers and potential visa holders, but the objective is to make sure that overseas workers are treated fairly and paid at the same level as New Zealand citizens and residents.
Why use a Licensed Immigration Adviser?
Why use a Licensed Immigration Adviser?
There are several reasons why a migrant or employer should use a Licensed Immigration Adviser (LIA) for New Zealand visas and employer accreditation matters.
First and foremost, using a LIA ensures that the immigration matter is completed correctly and efficiently. An LIA is a professional who has been licensed by the Immigration Advisers Authority, a New Zealand Government Department to provide accurate and up-to-date information on immigration laws and regulations. They are also able to provide expert guidance on the various visa options available, helping the migrant or employer to choose the most appropriate option for their situation. This not only saves time and effort but also reduces the risk of costly mistakes that could lead to declines or delays on their immigration matter.
Another important aspect of using a LIA is their ability to provide tailored advice and support. For example, they can provide guidance on how to meet the requirements of specific visa categories, such as the Skilled Migrant Category or Accredited Employer Work Visa. This can be particularly important for employers, as the LIA can assist with the accreditation process and help to ensure that the employer is compliant with all relevant laws and regulations.
Furthermore, an LIA can assist with the preparation and submission of visa applications and employer accreditation and job checks. This includes gathering and organising all the necessary documentation, ensuring that all forms are completed correctly, and providing guidance on the interview process. The LIA can also assist with reconsiderations and reviews of declined applications..
Lastly, using a LIA gives peace of mind as they are regulated and accountable by the Immigration Advisers Authority. This means that if any issues or complaints arise, a migrant or employer can seek resolution through the Immigration Advisers Authority complaints and disciplinary process.
In conclusion, using a Licensed Immigration Adviser for New Zealand immigration matters is beneficial for both migrants and employers. An LIA can provide accurate and up-to-date information, assist with the preparation and submission of visa applications, and provide tailored advice and support. Additionally, they are regulated by the New Zealand Government and accountable, ensuring that the immigration process is completed correctly and efficiently.