Another year of reform for the Accredited Employer Work Visa scheme – what changes can migrant workers and Kiwi employers expect? 

Lavinia Askin

24 January 2025

Yet another overhaul of the Accredited Employer Work Visa (AEWV) scheme was announced in late 2024, with a progression of new changes set to roll out from 27 January.  

The new changes will include the upcoming removal of the median wage threshold, a reduction in experience requirements, the introduction of new seasonal visa pathways and a redesign of the Job Check process.  

In a bid to lessen the administrative pressures on AEWV applicants and Immigration New Zealand (INZ), and address crucial labour shortages in key industries, the New Zealand government will implement these changes in five different stages over the course of the year.  

27 January
Removing the requirements for completion of Employment New Zealand online modules 
Accredited employers will no longer need to complete Employment New Zealand’s online modules or offer migrant workers paid time to do these. INZ will instead provide links to freely available Employment New Zealand or INZ webpages that set out employment rights and obligations at the most appropriate points in the immigration process. 
Reducing the domestic workforce threshold for certain construction roles 
The domestic workforce threshold for employers of certain construction roles is being reduced from 35% to 15%, making it easier for employers to hire foreign workers in these roles. 
March (exact date yet to be confirmed) 
Removal of the median wage requirement 
Wage thresholds for all AEWV and Specific Purpose Work Visa (SPWV) roles will be removed, although employers will still need to advertise and offer AEWV and SPWV employees the market rate for their position and workplace location. This change does not affect existing employment agreements.
Amending the Work and Income engagement requirement 
The current requirement for employers to engage with the Work and Income will be amended to be declaration based. Employers must declare that they have, in good faith, advertised ANZSCO skill level 4 or 5 jobs with Work and Income and interviewed candidates who could have been suitable for the job. The 21-day timeframe to engage with Work and Income will be removed. 
New earning threshold for migrants with dependents 
AEWV migrants will need to earn at least NZ$55,844 a year in order to bring their children to New Zealand.  While this threshold has not been updated since 2019, the increase may pose barriers for migrant employees in lower paying sectors.   
Reducing the experience requirement for migrants 
The work experience requirement for migrants will be reduced from three years to two.  Currently, it’s not entirely clear whether this reduction will apply only to lower skilled roles or across the board. We are waiting for INZ to release the policy details.  
Increasing the visa duration for ANZSCO level 4 or 5 AEWV holders to three years 
AEWV holders in ANZSCO levels 4 or 5 roles will gain visas valid for three years, up from two years (with the option of one additional year). This increased duration aligns with the total allowable stay in New Zealand for these visa holders. Those currently on a two-year visa will be able to apply for a further AEWV for one year if they meet the requirements. 
April (exact date yet to be confirmed) 
Greater work rights for those on interim visas 
Interim work rights will be extended to AEWV applicants who are applying from any work visa type or from a student visa that allows them to work during term time, supporting migrants to maintain employment while their visa is processed. 
July (exact date yet to be confirmed) 
New Job Check process  
INZ’s re-design of the Job Check step of the AEWV process will be implemented from July. The changes will help streamline the Job Check for low-risk employers with the aim of improving processing timeframes.  
November (exact date yet to be confirmed) 
New pathways for experienced seasonal workers 
Two new pathways for seasonal workers will be introduced in November, including a three-year multi-entry visa for experienced workers and a seven-month single entry visa for lesser-skilled workers. The existing temporary seasonal pathways will remain available until then. 

Overall, these changes are a significant step forward, removing some hoops for accredited employers to jump through and making it easier to fill vacancies in a range of industries.  

On the other hand, the biggest stumbling block of not being able to submit Job Check and AEWV applications at the same time remains.  We are finding that many migrant employees need to apply for alternative visas (such as Visitor Visas) or leave New Zealand while waiting for Job Check applications to be approved, causing burden and anxiety for employers and migrants alike. 

We highly recommend that migrants and their employers plan ahead to avoid work visas expiring before Job Check applications can be processed by INZ.  

Although the revised criteria has been designed by the New Zealand government to create new opportunities for migrant workers and ultimately speed up some parts of the application process, AEWV applicants and their employers are still advised to carefully assess their specific situation against the updated requirements and seek professional immigration advice prior to submitting their applications to give themselves the best possible chance of a positive outcome.  

Our team can help you navigate these changes. We offer an initial, free 15-minute consultation to discuss your unique situation.  Book your consultation with us today by clicking here.  

What happens if I submit false or misleading information with my New Zealand visa application? 

Elly Fleming

12 December 2024

When it comes to applying for a New Zealand visa, honesty is generally the best policy.  

New Zealand’s immigration system, like many around the world, relies on visa applicants to provide accurate and complete information, showing they meet the requirements to be granted a visa, or to be allowed to enter New Zealand.  

Section 58(6) of the Immigration Act 2009 empowers Immigration NZ (“INZ”) to decline visa applications if they find false or misleading information, or if relevant information is withheld by the applicant or their agent. The overall goal of section 58(6) is to safeguard the immigration system’s integrity and reduce visa fraud – this means that New Zealand visa applications are regularly carefully scrutinised.  

Many visa applications are, however, lodged by migrants without any assistance from immigration lawyers or advisers.  Most migrants generally have a limited understanding of immigration law and policy, but due to the high cost of visa applications fees (particularly residence applications) many do not engage a professional to avoid paying a further fee. We have seen many cases in which this approach has significantly backfired and highly recommend seeking professional advice from the outset.  

One of the obvious risks of pressing ahead with an application without professional help is completing the application form incorrectly or providing false or misleading information with the belief that the false information will improve the visa application, and in turn, increase the chances of the visa being granted. 

Examples of common errors we have seen applicants make include: 

  • Failing to disclose a full criminal history, regardless of whether the applicant served time in prison 
  • Omitting details of previous relationships 
  • Not listing all dependent family members, including children 
  • Incorrectly describing the nature of relationships and relationship status  

More serious examples that we regularly come across include providing: 

  • Inaccurate or fabricated bank statements or loan agreements, ownership certificates or titles for property or other financial assets; or fabricated relationship evidence     
  • Inaccurate or fabricated identity documents such as passports, birth certificates, marriage certificates, overseas driver licenses 
  • Inaccurate or fabricated work references about employment to demonstrate skills or experience in a particular position 
  • Inaccurate or fabricated education certificates and transcripts 

Details that some applicants might consider minor can, in fact, become relevant lines of inquiry for INZ. The result can not only mean visa refusal but also the need to convince INZ to grant a character waiver in subsequent applications. In more serious cases, it can also result in deportation liability.  

 While each visa application is assessed based on its surrounding circumstances before a decision is made, in accordance with section 58(6) INZ does not need to establish that the false or misleading information was provided intentionally. 

All visa applicants are strongly encouraged to thoroughly review all documents before submitting them to INZ. If applicants have any concerns about their application, they should consult an immigration lawyer or adviser.  

What may seem like a minor oversight could lead to significant issues down the track. To prevent serious consequences later on, it is advisable to resolve any concerns or uncertainties regarding prior to submission of the application.  

If you are going to entrust someone to assist with your visa application process, make sure that this person is an experienced immigration lawyer or a licensed immigration adviser. Sadly, there are lots of unscrupulous operators, particularly overseas, who pretend to be licensed immigration advisers.  They readily submit inaccurate or fabricated documents to INZ, often without the visa applicant’s knowledge. In the end, it is the visa applicant who has to face the consequences. 

As no two situations are ever completely the same, whether you will be able to secure or keep your visa, depends on the nature of the issue you are facing and the severity of the violation against the immigration rules. 

Since immigration rules are complex, many applicants make genuine mistakes. It is critical that professional advice is sought to turn things around, if possible. It is very important that you understand exactly what sort of trouble that you are in and know what options are available.  

It is critical that anyone who finds themselves facing possible submission of inaccurate, incomplete or fabricated information to INZ obtains legal advice from immigration experts to give themselves the best possible chance of securing a visa or remaining in New Zealand. 

We are experts in this area and can give you advice on your particular circumstances. If we believe we can assist, we will explain your chances of success and the costs associated with engaging us.  

We offer an initial, free 15-minute consultation to discuss your unique situation.  Book your consultation with us today by clicking here

Moving to New Zealand from the USA in 2025

Elly Fleming

18 November 2024

In recent years, an increasing number of US citizens have set their sights on New Zealand as a desirable destination for either short term or long-term relocation.    

New Zealand has long been viewed as a haven for those seeking a change in lifestyle. New Zealand’s combination of political stability, high quality of life, and stunning natural beauty has lured many migrants to our shores. 

 While New Zealand is welcoming to migrants, there are strict immigration rules. Americans must be prepared for a thorough application process if they want to stay for longer than three months at a time. But for those determined to create a new life in a new country, these challenges are not insurmountable. 

As the world continues to change, New Zealand may just become one of the most sought-after destinations. 

There are many factors to consider when deciding which New Zealand visa option is best for you, including: 

  • when you want to come and how long you want to stay; 
  • your age; 
  • your health; 
  • your work and study plans; and 
  • if you want to bring your partner or family with you to New Zealand. 

The variety of New Zealand visa options available to US citizens cater to different needs, so choosing the appropriate visa category when planning to apply for immigration to New Zealand is essential, and something we can help you with here at Pitt & Moore. 

As an American citizen, you have several visa options for visiting, working, studying, or retiring in New Zealand. Here’s a summary of some key visas available to US citizens wishing to stay in New Zealand for longer than 3 months at a time: 

Temporary Visas 

About

Current processing times

Current Immigration NZ application fees

General Visitor Visa 

With this visa you can stay for up to either 6 months (multiple entry) or 9 months (single entry). You cannot work, but you can study for up to 3 months. 
You can include your partner and dependent children in your visa application. 

80% within 
4 weeks 

From 
NZD $341 

For Americans aged 66 years or older, who can invest NZD $ 750,000 in New Zealand this visa allows a stay in New Zealand for up to 2 years (multiple entry).  You also need to show that you have NZD $500,000 to live on and an annual income of NZD $60,000 or more. Travel/health insurance is a must for this type of visa. 
You can include your partner in this visa application.

80% within 
4 weeks 

If applying outside NZ – free 
If applying in NZ 
NZD $ 7,791 

For Americans aged 18–30, this visa allows travel and work in New Zealand for up to 12 months. 
With this visa you cannot accept a permanent job or bring children with you. If you have a partner who wants to come to New Zealand, they’ll need to apply for their own visa. 

80% within 
2 weeks 

From 
NZD $670 

With this visa, you can study full-time at the course stated on your visa (schools, tertiary and English language study). You will need to pay the full cost of your courses and enrol with an approved education provider. Permits work up to 20 hours per week during term and full-time during breaks. 
If you want to bring your partner or children with you, they may be able to apply for visas based on their relationship to you. 

80% within 
6 weeks 

From  
NZD $750

On an AEWV, you can work in New Zealand for an accredited employer who has offered you at least 30 hours work a week, for up to 3 or 5 years, depending on the skill level of your role.   
You may be able to support a work visa for your partner and visitor or student visas for your dependent children. 

80% within 
15 weeks 

From 
NZD $1540

Residence Visas

About

Current processing times

Current Immigration NZ application fees

With this visa, people 55 and under can live, work and study in New Zealand indefinitely. You must have a job, or a job offer in New Zealand to apply and also qualify for 6 points.  
Your employment must be with an accredited employer and either full-time and permanent, for a fixed term of at least 12 months or a contract for services of at least 6 months.  
You can include your partner, and dependent children aged 24 and under, in your residence application. 

80% within 5 months

From 
NZD $6450

You can apply for this visa if you are 55 or younger and currently work, or you have a job offer, from an accredited NZ employer, and your role is on Tier 1 of the Green List in-demand. With this visa you can live, work and study in New Zealand indefinitely. 
Some examples of roles currently considered ‘Tier 1 roles eligible for straight to residence’ include: Registered Nurse,
Secondary School Teacher, 
Medical Practitioner,
Ambulance Paramedic, Dentist, Engineer, Surveyor and ICT Project Manager. You can include your partner, and dependent children aged 24 and under, in your residence application. 

80% within 
3 months 

From 
NZD $6450 

You can apply for this visa if you are 55 or younger and currently work, or you have a job offer, from an accredited employer, and have worked in a Tier 2 Green List in-demand for 24 months.  
With this visa you can live, work and study in New Zealand indefinitely. 
Some examples of roles currently considered ‘Tier 2 roles eligible for straight to residence’ include: Automotive Electrician, Dairy Farm Manager, Early Childhood Teacher – registered and electrician.
You can include your partner, and dependent children aged 24 and under, in your residence application. 

80% within 4 months 

From 
NZD $6450

With this visa, you can live, work, retire and invest in New Zealand. You must have up to NZD $15 million to invest in ‘acceptable investments’ in New Zealand or the weighted equivalent in available assets or funds. The criteria for acceptable investments can be found here. You can include your parent and dependent children aged 24 and under, in your visa application.  
After 4 years of keeping your funds in New Zealand you could apply for permanent residence. 

Approval in principle 80% within 4 weeks 

From 
NZD $27,470

This is not an exhaustive list of all visa types available. It is vital to get personalised immigration advice on your visa options. 

When applying for your visa, planning ahead and being prepared with an application that meets all applicable criteria is crucial.  

Taking the leap to move to New Zealand can be daunting, and the complex immigration policies can be tricky to navigate, so seeking legal guidance is highly recommended. Our team of expert immigration and employment lawyers are here to help and provide advice for your specific situation, contact us today on 03 548 8349 or immigration@pittandmoore.co.nz.

What sets us apart is that we are experts in each step of the immigration process. This means that we can advise on all immigration/visa-related issues as well as employment related issues. 

We offer an initial, free 15-minute consultation for immigration matters.   

Revised Partners Work Rights: What You Need to Know 

Elly Fleming

1 November 2024

Starting 2 December 2024, the New Zealand government will expand open work rights to more partners of work visa holders, allowing them to work for any employer if they meet certain wage and sector conditions. Although great news for some, it is important to note that only certain partners will be eligible… 

Being granted open work rights means gaining the freedom to work for any employer, in any lawful occupation, and at any pay rate, so long as it meets the current New Zealand minimum wage of $23.15 per hour.  

Additionally, open work rights give a person the option to be self-employed or start a business of their own. These rights don’t limit a person to one job only, open work rights allow someone to hold multiple jobs. There is also no obligation to work at all.  

Open work rights will become available to: 

  • all partners of Accredited Employer Work Visa (AEWV) working in an Australian and New Zealand Standard Classification of Occupations (ANZSCO) Level 1-3 role and earning at least NZD$25.29 an hour  
  • partners of AEWV holders earning at least $25.29 an hour if they were already supporting a partner for a work visa on 26 June 2024 
  • all partners of Essential Skills work visa holders earning at least $25.29 an hour 

For those with partners working in an ANZSCO Level 4-5 role, open work rights will only be granted if their partner: 

  • earns at least $47.41 an hour  
  • earns at least $31.61 an hour in a role on the Green List and meets the Green List requirements for that role 
  • earns at least $25.29 an hour and meets the requirements of a role in the Transport or Care Sector Agreements (or the wage specified in the sector agreement, whichever is higher). 

Current holders of partner work visas with specific work conditions, will be able to apply to vary their visa conditions to open work rights, when their partner meets the expanded eligibility criteria. 

While this change in immigration policy settings addresses many concerns over labour shortages and family separation, we feel all partners of AEWV holders who are in New Zealand, irrespective of their partner’s occupation, should be able to work for any employer.   

This is especially relevant for AEWV holders with roles in ANZSCO Level 4-5 occupations as people with lower-skilled occupations are far more likely to need their partner to be able to work to meet the rising cost of living in this country.  This would restore Kiwi employers’ access to a larger pool of workers and streamline hiring processes.   

We understand that immigration policy changes can be difficult to get your head around. Our team of expert immigration and employment lawyers are here to help demystify these changes for you and provide advice for your specific situation, contact us today on 03 548 8349. 

Lights, camera, action: Securing Entertainers Work Visas for film and television crews 

Hannah McCarthy

12 September, 2024

In the world of film and entertainment, New Zealand has long been known for its stunning scenery and world-class special effects facilities, making it an ideal place to produce high-budget international film and television.  

What most people do not realise is the amount of paperwork required behind the scenes to ensure talent and crew from around the world can legally work on productions in New Zealand.  

Anyone working in New Zealand for any period must be a New Zealand or Australian citizen, an Australian permanent resident, hold a New Zealand residency permit, or a valid work visa. Immigration New Zealand is required to enforce this, even when it comes to big-budget, high-profile productions.   
‍ 
This means visiting producers, directors, musicians, cast and crew must apply for a suitable work visa before they come and work on our shores. The most common visa for this is called an Entertainers Work Visa. 

With this visa, you can come to New Zealand to work in the entertainment, music, film or television industries for a limited time but can only work for the specific employer on the specific production you’ve referenced on your application.   

Immigration NZ requires, among other things, that an entertainment industry employer shows that the talent or crew they want to bring in are ‘manifestly essential’ to the production, or that they do not put at risk engagement of New Zealand professionals and have previously looked at engaging New Zealand professionals to fill the role. All of this must be backed up with clear evidence. 

As an example, if a production company needed a specific overseas worker because finance or distribution depended on their involvement, the visa application would need to include written confirmation from a sales agent, distributor or key investor to prove that this was the case. 

Whether you’re an actor, performer, musician, production company or crew member, dealing with complex visa requirements like this can be daunting to navigate. At Pitt & Moore, we specialise in securing Entertainers Work Visas, ensuring that the focus can remain on your craft rather than on the complicated visa process associated with working overseas. 

Our immigration team brings a wealth of expertise in handling the unique visa requirements associated with the entertainment, music, film, and television industries. We understand that each sector has its own set of requirements and nuances, and we are committed to providing a tailored approach to meet these specific needs.  

One such nuance is obtaining any necessary agreements from relevant New Zealand performers unions or professional associations.   

Our services are designed to provide personalised attention and a streamlined process. We make sure that all the necessary documentation and procedural steps are meticulously managed, so you can pursue your international opportunities with confidence. We pride ourselves on our proven success in helping clients secure Entertainers Work Visas, allowing them to perform and collaborate internationally without hassle.  

Securing an Entertainers Work Visa can be riddled with potential obstacles if not managed properly. Common issues include incomplete or incorrect documentation, missed deadlines, and misunderstandings of specific visa requirements. These pitfalls can lead to significant delays or even visa refusals. Furthermore, New Zealand’s immigration policies are currently in a state of upheaval and changes to immigration rules can affect your application if not promptly addressed. 

At Pitt & Moore, we excel in identifying and navigating these challenges. We ensure that your application is thorough, timely, and compliant with the latest immigration regulations. Our proactive approach helps mitigate risks and prevents issues that could disrupt your plans and filming schedule.  

If you’re ready to take the next step  contact us today to schedule a 15-minute free consultation.  

Immigration rule changes for seasonal workers

Elly Fleming

28 August 2024

There have been a couple of announcements this month affecting Kiwi employers who might need seasonal workers.

As outlined below, there have been improvements made to the Recognised Seasonal Employer (RSE) scheme following government review. And, for those industries with seasonal peaks, there is a new subcategory of the Specific Purpose Work Visa for when the work is directly impacted by changes in weather.

RSE cap increase of 1,250 workers

For the upcoming 2024-2025 season, the cap on the number of RSE workers is increasing to 20,750. This is an increase of 1,250 from last season’s cap, which was 19,500.

This increase is touted to help meet industry’s expansion plans and growth projections, particularly in wine and kiwifruit exports, while also being mindful of accommodation availability for workers.

Other improvements

Most of the following changes take effect from next week, on the 2 September.

  • Employers must pay RSE workers an average of 30 hours a week over 4 weeks.
  • RSE workers will now be granted a visa that will allow them to leave and return to New Zealand during a season.
  • RSE workers will no longer have to be screened for HIV.
  • The pause on accommodation cost increases will be lifted and employers will be able to increase rents modestly.
  • RSE workers will be able to undertake training and skills development not directly related to their role.
  • There will be more flexibility for RSE workers to move between employers and regions.
  • Timor-Leste will be included in the scheme.
  • The requirement to pay RSE workers at least 10 percent above the minimum wage will only apply to experienced workers returning for their third and subsequent seasons.

This is an interim, time-limited, streamlined pathway and is more in line with the length of seasonal work.

To be eligible, the seasonal work must be directly impacted by changes in weather, such as harvesting, ski instructing, or tree planting.

The role must also start on or before 31 May 2025, and be for no longer than 9 months.

Horticulture, viticulture, and fishing crew work covered by other visas is excluded.

Applications from migrants must be received on or before 31 March 2025.

As an employer you will need to:

  • hold employer accreditation
  • pay at least NZD$29.66 per hour for a minimum of 30 hours per week.
  • advertise the role beforehand and provide evidence of this to the migrant to include in their application.

Our team of expert immigration and employment lawyers have a great deal of experience helping employers and migrant workers navigate all aspects of the complex immigration process. We are here to help, contact us today on 03 5488349.

What does the upcoming visa fee increase mean for migrants and Kiwi employers?

Elly Fleming

14 August 2024

New Zealand visa applicants and employers have found themselves in a race against the clock as a substantial Immigration New Zealand fee increase looms.  

Come October 1, New Zealand will see a jump in visa fees for applications across nearly all visa categories, including employer accreditation. It is yet another hurdle in what has already been a turbulent year for changes to immigration policy, and one that is likely to have a knock-on effect on visa processing times for the remainder of 2024.  

For those who have set their sights on coming to or remaining in New Zealand, this major increase in fees will come as a significant shock. 

In many cases, application fees are nearly doubling. Immigration New Zealand has released a full table of changes to fee and levy rates, which illustrates that as of 1 October: 

  • The application fee for a Skilled Residence Visa (this includes Skilled Migrant Category, Green List: Straight to Residence, Green List: Work to Residence, and Care Workforce: Work to Residence categories) will be raised by 50% to $6,450, up from $4,290. 
  • The application fee for a Partnership Residence visa will almost double to $5,360 from its current $2,750 setting. 
  • The application fee for a Dependent Child Resident visa will increase from $2,750 to $3,230. 
  • The fee for processing a Student visa will double from $375 to $750. 
  • For Accredited Employer Work Visas, the overall cost will increase from $750 to $1,540. 
  • Employer Accreditation applications see a gradual increase with the biggest hike for labour hire accreditation category, from $3,870 to $4,060.  

Despite the fee increases, New Zealand will continue to subsidise visa fees for applicants from Pacific countries and there will be no fee increases for Recognised Seasonal Employer status, Pacific Access Category and Samoan Quota Resident visas, or for New Zealand Electronic Travel Authority (NZeTA).    

We highly recommend that migrants and employers plan ahead and only submit applications that meet all applicable criteria. This fee hike is likely to cause a mass rush to get applications in ahead of 1 October. As a result, processing delays look very likely as Immigration New Zealand copes with an influx of applications.  

At Pitt & Moore, we are also anticipating that Immigration New Zealand’s online application systems will experience issues in the period leading up to this date due to a higher volume of transactions. To avoid additional costs and technical issues, our advice is to get eligible applications in as soon as possible, and well ahead of that October deadline.  

When application fees increase significantly, the stakes for migrants and Kiwi employers are higher, making expert legal advice even more crucial.  

Visa applications often involve intricate legal requirements and documentation. An expert can help navigate these complexities, ensuring that all forms are filled out correctly and that all required documents are submitted. From our experience, missteps in this process can lead to delays or denials, which can be costly and time-consuming. 

 Expert legal guidance will help make this process more streamlined and will give you a much better chance at securing your visa. 

Don’t hesitate to reach out to the immigration team here at Pitt & Moore for professional advice on how best to approach your visa application.  

Becoming A New Zealand Citizen Is Now A Waiting Game

by Elly Fleming

03 April 2024

Many New Zealand citizenship applications by grant – where the applicant and their parents were born outside of New Zealand – are languishing in limbo with the Department of Internal Affairs’ (DIA) Citizenship Office, with some people waiting for over 12 months for an outcome.  

With the prospect of lengthy processing timeframes, it is critical for residents applying for citizenship to get professional advice and assistance before they start the process to ensure they can, in fact, meet all requirements for citizenship before they embark on this process with the DIA.

Dotting your I’s and crossing your T’s 

One of the key requirements – and one that often trips up applicants – is the minimum ‘presence in New Zealand requirement’ that must be met in the five years prior to application: 

  • at least 240 days in each 12-month period, and 
  • 1,350 days across the five years. 

The DIA has an online Presence Calculator to check if the presence requirements have been met, but it is often inaccurate. This means applicants could unintentionally get caught out by either believing they are not eligible to apply when they are, or believing that they can apply when, in fact, they don’t meet the minimum number of resident days in the country.  

Not meeting the resident days requirement, even if the DIA’s own calculator was used to check eligibility, will result in applicants waiting in the queue in vain – potentially for months – only to receive a negative outcome. Pitt & Moore’s immigration law experts can help confirm if applicants have met all the requirements for citizenship in advance, to avoid this sort of disappointment.  

Applicants with complex personal histories, such as any criminal convictions, should also get tailored legal advice before submitting their New Zealand citizenship application. Pitt & Moore also recommends preparing all the required identification documents in advance, as it can take time to track them down or get any in foreign languages appropriately translated. 

Managing timeframe expectations

To date, there are over 26,000 residents waiting to become New Zealanders. Even when an application has been submitted correctly, the Citizenship Office’s online citizenship timeframes webpage currently states 94% of applicants are granted citizenship within 19 months. 

As was recently reported in RNZ, for many hopeful citizens, the wait time for application processing has ballooned, with many applicants left in the dark for long periods of time. Furthermore, while they remain in the queue, applicants are required to manually submit all travel plans and life changes (such as marriage or divorce) to the Citizenship Office via email – an added administrative burden on both the applicant and on DIA staff. 

Pitt & Moore is aware the DIA’s online application system remains frustratingly opaque, with applicants unable to get updates on the status of their application or where they are in the queue. It is something Pitt & Moore has raised with the Citizenship Office multiple times, in an attempt to see improvements for applicants.

Why being a New Zealand citizen is still worth it  

We understand the value of being a New Zealand citizen, and we understand the value of new migrants to New Zealand. Despite the red tape, there are many good reasons to become a New Zealander: 

  • Citizens can live, work and travel in and out of the country without limitation and without being subject to New Zealand immigration policies – granting an added aspect of security.  
  • Generally, New Zealand citizens are eligible for a free Special Category Visa (SCV) in Australia upon arrival. With a SCV, New Zealanders can enter and stay in Australia on an indefinite basis; visit, work and study; and can apply for a permanent visa if eligible. New Zealand citizens who have lived in Australia as SCV holders for four years or more may be eligible to apply directly for Australian citizenship as well. 
  • The New Zealand passport is ‘high quality’, currently joint sixth in the global Henley Passport Index, tied with Australia, Czechia and Poland. It enables travel visa-free or with access visas on arrival to 189 countries. 
  • Being a New Zealand citizen is also one of the requirements to stand as a candidate to become a Member of Parliament in a general election or by election, or for standing for election to local council.  
  • Becoming a New Zealand citizen enables the purchase of ‘sensitive land’ in New Zealand without needing prior approval from the Overseas Investment Office , if desired.  

Pitt & Moore is here to help 

Our experienced team of immigration lawyers is here to help applicants navigate all aspects of citizenship, and advising on any issues that may prevent citizenship from being granted.  

a wallet with a bunch of money sticking out of it

Employment Law Update for Employers

by Hannah-Jean McCarthy

19 March 2024

The new coalition Government have implemented numerous legislative changes affecting employers. This is a good time for employers to pause, consider updating employment agreements, check payrates and (if your employees are on a visa) review your compliance with Accreditation obligations.

Minimum Wage Increase

As of 1 April 2024, the minimum wage will increase to $23.15. The starting out and training wage will increase to $18.52.

If an employee already earns $23.15 per hour, there is no legal requirement for employers to provide a pay rise.

90-Day Trial Period

The Employment Relations (Trial Periods) Amendment Act 2023 extends the right to businesses with 20 or more employees to include a 90-day trial period clause in employment agreements for new employees.

All 90-day trial clauses must be drafted and implemented correctly to be effectively relied upon.  A valid trial period clause must:

  • be included in the written employment agreement;
  • specify that the employee is bound to the 90-day trial clause;
  • set out the commencement and duration of the trial period;
  • specify the notice period for termination under the 90-day trial (for example one week notice period);
  • specify that the employee is unable to raise a personal grievance or proceedings relating to the dismissal;
  • be applicable to new employees only (i.e. not someone who has worked for the employer in the past); and
  • be entered into willingly by the employee before they commence employment. For example, an employee should not sign the agreement and start work on the same day.

A valid 90-day trial clause allows an employer to give notice of dismissal to an employee during the trial period, without the employee being able to raise a personal grievance for unjustified dismissal or raising claims related to the dismissal process. However, it does not prevent an employee from raising a grievance for unjustified disadvantage, discrimination or harassment.

If an employer decides to dismiss a trial employee, it is crucial that the notice is given during the 90-day period, and that the correct notice period is provided. In some cases, this may mean that employment does not formally end until after the 90-day period, but this does not invalidate the 90-day trial protection for the employer.

Despite the above, employers employing migrants on an Accredited Employer Work Visa cannot include a 90-day trial clause in the employment agreement. This is because a job check application will be declined if an employment agreement includes the clause.

Worker Protection (Migrant and other Employees) Act 2023

The new Worker Protection (Migrant and Other Employees) Act 2023 modifies the Employment Relations Act, the Immigration Act and the Companies Act.

An in-depth analysis of the legislation can be found here.  

However, key takeaways employers should be aware of include:

  1. Immigration Officers and Labour Inspectors can now:
  • request documents to verify that employers of migrant workers are complying with obligations; and
  • issue an infringement notice when employers fail to provide requested information. 
  1. There are three new infringement notices aimed at employers under the Immigration Act:
  • allowing unauthorized individuals to work, 
  • employing someone in violation of visa-related conditions, and 
  • failing to comply with document provision requirements within the stipulated timeframe.   
  1. The Chief Executive of MBIE can now publish the names of employers convicted of immigration offences or issued with infringement notices. 
  2. A conviction for migrant exploitation or people trafficking has been added to the grounds on which the Court can disqualify an individual from being a company director or taking part in company management.

Pitt & Moore’s expert employment team can assist you with reviewing and drafting employment documents to ensure they comply with the new changes.

If you would like more in-depth advice or further information about the content of this article, please get in touch with the team at Pitt & Moore on 03 5488349.

Tightrope Act of Complying with Immigration and Employment Law Obligations for Employers of Migrant Workers

by Heather Collins

1 February 2024

There has been a significant focus on migrant workers in New Zealand over the past year. As we have previously highlighted, a number of changes have come into force to better protect migrant workers, and prevent and deter exploitation by employers.

These legislative changes expose businesses employing migrant workers to more severe penalties for exploitation and may also result in more scrutiny of businesses that hire migrants.

For this reason, now more than ever is an ideal time for business owners to pause and re-examine their practices, to ensure that they are meeting both their employment and immigration obligations.

In our experience, one of the biggest stumbling blocks for employers is the process to follow when a migrant worker no longer holds a visa. In this article, we outline some general best-practice recommendations for employers to consider when it comes to improving practices and reducing the risk of non-compliance.

What are an employer’s obligations when a migrant worker’s visa expires?

Once a migrant worker’s visa expires, unless they have been granted an interim visa with conditions that allow them to work for their employer, they cannot perform any duties for their employer, and they are generally not permitted to remain in New Zealand.

Employers of migrant workers must not only adhere to their obligations under the Immigration Act 2009 but also to the requirements of the Employment Relations Act 2000 and other employment related legislation relevant to employment relationships.  If a migrant worker’s visa expires, employers have an obligation to ensure that the worker isn’t completing any duties, as the employer could then be sanctioned for allowing someone to work without a valid visa. There are steep penalties for hiring or allowing someone to work who is not entitled to.

Often in this scenario, the employer’s focus shifts to removing the unlawful employee from the business as quickly as possible.  However, where an employment agreement is in force, the migrant worker is still an employee. This means that while the migrant worker is not allowed to perform duties, they are still afforded all the same rights and protections as any other employee, irrespective of their visa status. 

The employer remains obligated to follow a ‘fair and reasonable’ process and act in good faith. In practice, this means that an employer cannot simply terminate the migrant worker’s employment without due process simply because the migrant worker no longer holds a visa.  Doing so will likely result in the migrant having grounds to raise a personal grievance.

What is the best practice for an employer in this situation?

Unfortunately, there is no clear, established law on a particular process to be followed. But, in general, Pitt & Moore advises against automatically terminating a migrant worker’s employment or standing a migrant worker down without pay without their agreement when they would be otherwise willing and able to work, as this could be deemed an illegal suspension.

If there is nothing specified in an existing employment agreement about how to address this issue, the best practice is to reach an agreement with the migrant worker. This could be an agreement for the migrant worker to take the remainder of their annual leave, or if there is no leave available, to take unpaid leave until they are granted a valid work visa. If the migrant worker is unwilling to take unpaid leave, the employer could consider extending special paid leave for a finite period, to ensure the migrant worker is not disadvantaged.

Set up clear expectations in an employment agreement

For employers looking to review and update their existing employment agreements, it can be helpful to have clauses that:

  • Allow for unpaid or paid leave where a worker’s visa expires;
  • Clarify the worker’s obligation not to cause unnecessary delays when applying for a new work visa; and
  • Make it clear that employment cannot be held open and identify a point at which an employer can validly end the employment.

These clauses should be tailored specifically to you as the employer and your worker. Specific legal advice should be sought when refreshing these documents.

Who is obligated to ensure migrant workers’ visas remain current?

A visa holder (migrant worker) is required to hold a valid visa at all times in New Zealand. They may only work under the conditions specified in their visa. Immigration New Zealand (INZ) recommends visa holders apply for another visa at least one month before their current visa’s expiry date.

Employers are not allowed to ‘provide immigration advice’ to migrant workers – for example, by advising migrants which would be the best visa for them to apply for, or what documents they may need for the application. But employers do have an obligation to try and ensure a worker’s visa is processed prior to its expiry and to support an expedient process by providing any documents or paperwork promptly. In the 2021 decision of Restaurant Brands Ltd (RBL) and Dilshaad Gill, RBL was ordered to pay Mr Gill $25,000 on top of lost wages of $19,950 for unjustifiably dismissing him on the expiry of his work visa, and their failure to advise Mr Gill that they didn’t intend on supporting his visa application.  

Taking Restaurant Brands as an example and precedent, there is a risk of non-compliance if an employer fails to follow the proper process, creates a delay for a migrant worker’s visa application, or disadvantaged them financially.  In these situations, it becomes important the employer ensures their migrant worker’s employment is preserved where possible and employment processes meet the required standard

Get professional advice

The laws surrounding employment and immigration move quickly and are designed to protect both employees and employers. We suggest that tailored advice is sought for your business in the event that a migrant worker’s visa is about to expire or has already expired.

Pitt & Moore provides expert advice on immigration, employment, and visa rules and processes so please contact us for some expert guidance.

How Pitt & Moore can help

What sets us apart is that we are experts not only in employment law but also in each step of the immigration process. This means that we can advise on all immigration/visa-related issues as well as employment related issues.

We offer an initial, free 15-minute consultation for immigration matters.

white brick wall with black and white graffiti

The end of the 90-day trial for AEWV is coming

By Lavinia Askin

17 October 2023

Immigration New Zealand (INZ) is now placing Accredited Employers under extra scrutiny, as explained in an earlier article.

Radio NZ reports that as of 4 October 2023, 22 employers have had their accreditation suspended and a further 61 have had it revoked. Over 50 employers’ accreditations were still being assessed for potential immigration or employment breaches at that time.

There have also been negative implications for offshore Accredited Employer Work Visa (AEWV) holders. More than 500 individuals have had border alerts placed on them as a result of investigations. They cannot leave their home country for a job in New Zealand they feel they have already ‘paid for’ through the process of obtaining a visa and have no certainty about their future employment in New Zealand.  

This compounding situation has triggered the need for further measures to increase protection and support for migrant workers. Most recently, the government has announced it will prohibit use of 90-day trial periods for migrant workers on AEWVs.

This change will come into effect on 29 October 2023.

What will the end of the 90-day trial mean for Accredited Employers?

The intentions of the rule change are good – to encourage employers to only recruit migrants when they have a genuine labour need or skills gap, and to improve the fair treatment of migrant workers.

Not being able to use 90-day trial periods is likely to discourage small to medium size businesses from hiring migrants on AEWVs, as there may be additional risk perceived with the recruitment of migrant workers. However, it is important to note that problematic employees may be dismissed from their roles via other processes which are compliant with employment law. In this regard, employers are encouraged to seek expert advice.

The removal of the 90-day trial period creates yet another disparity between how AEWV holders are treated and how New Zealand citizens or residents and other types of temporary visa holders are treated.

There is no getting around the rule change:

  • A Job Check application will be declined, if the employment agreement includes a 90-day trial period clause.
  • Adding in a 90-day trial following approval of the Job Check may lead to an employer losing their accreditation.

The policy change does not apply to currently approved Job Checks, or to migrants who already hold, or who have applied for an AEWV.

We are also expecting updates from INZ before the end of the year clarifying that:

  • INZ can suspend accreditation when there are indications that an employer may be in breach of specific immigration and employment standards. There does not need to be a formal investigation.
  • The requirement for accredited employers to not pass on recruitment and employment costs to migrant workers covers both visa applicants and visa holders.

Pitt & Moore provide expert advice on immigration, employment and visa rules and processes so please contact us for some expert guidance.

Change is on the way for ‘triangular employers’

Triangular employment arrangements (such as labour-for-hire) with employers who employ migrants to work at other businesses’ premises have also been identified as requiring tighter controls.

All triangular employers will need to provide evidence of financial viability upfront when applying for or renewing accreditation.

Later this year, triangular employers of construction workers will be required to increase their proportion of New Zealand workers from 15% to 35%. This new requirement for the New Zealand workforce threshold must be met at both the Job Check and accreditation stages.

A date for when these changes will come into effect has not yet been announced, but we are expecting an update soon.

Are your governance and compliance risk standards up to scratch?

INZ has announced a raft of changes to both make the AEWV more appealing to skilled migrants (which we previously summarised in an article here) and to better protect them from potentially unscrupulous employers.

With the additional scrutiny INZ is placing on employers, directors and senior managers, now is the time to consider implementing better standards of governance and compliance risk oversight at the workplace, as well as systems for management of operational risks related to immigration and employment.

Pitt & Moore has expertise in both immigration and employment law and is well placed to assist your business. 

Have questions or concerns? Pitt & Moore is here to assist

If you have any questions or would like assistance with your company’s accreditation or Job Check applications, please get in touch with Pitt & Moore’s specialist employment and immigration team: 03 548 8349.

Domestic Violence Leave – Key Points for Employers

By Heather Collins

6 June 2023

On 1 April 2019 the Domestic Violence – Victims’ Protection Act came into force adding legal protections into the Employment Relations Act for employees affected by domestic violence.

The Act allows employees affected by domestic violence to request paid Domestic Violence Leave and short-term flexible working arrangements. In addition Employees can now raise a personal grievance on the grounds that they have been adversely treated by their Employer because of their Employer’s belief that they are affected by domestic violence. Adverse treatment in the workplace of people affected by domestic violence is also a new form of discrimination under the Human Rights Act 1993.

So what does this mean for Employers? The key things to note about this recent law change are set out below.

What is Domestic Violence?

Domestic Violence means violence against a person by any other person with whom that person is, or has been, in a domestic relationship. It includes:

  1. physical abuse;
  2. sexual abuse;
  3. psychological abuse, including, but not limited to:
    • intimidation;

    • harassment;

    • damage to property;

    • threats of physical abuse, sexual abuse, or psychological abuse;

    • financial or economic abuse (for example, denying or limiting access to financial resources, or preventing or restricting employment opportunities or access to education):

A single act may amount to abuse and a number of acts that form part of a pattern of behaviour may amount to abuse, even though some or all of those acts, when viewed in isolation, may appear to be minor or trivial.

What is a domestic relationship?

A person is in a domestic relationship with another person if the person—

  1. is a spouse or partner of the other person; or
  2. is a family member of the other person; or
  3. ordinarily shares a household with the other person (excluding people who share a dwelling and are in a landlord-tenant relationship, employer-employee relationship or employee-employee relationship); or
  4. has a close personal relationship with the other person (excluding employer-employee and employee-employee relationships).

Who is a person affected by Domestic Violence?

A person affected by domestic violence means a person who is 1 or both of the following:

  1. a person against whom any other person inflicts, or has inflicted, domestic violence;
  2. a person with whom there ordinarily or periodically resides a child against whom any other person inflicts, or has inflicted, domestic violence.

Who is eligible for Domestic Violence Leave and short term flexible working arrangements?

Employees become eligible for Domestic Violence Leave if they have worked for their Employer for at least six months and for at least an average of 10 hours a week (and must have worked either at least 1 hour each week or at least 40 hours each month over the six month period).

If an Employee isn’t eligible for Domestic Violence Leave it would be prudent for the Employer to consider what other support could be provided to ensure that the Employee is safe in the workplace (discussed in more detail below).

What entitlements does an eligible Employee have?

Eligible Employees are entitled to at least 10 days paid Domestic Violence leave each year and can ask for up to 2 months of flexible working arrangements.

Does a Domestic Violence Leave clause need to be added to Employment Agreements?

It isn’t mandatory for a Domestic Violence Leave provision to be included in an employment agreement. However it can be a helpful way of letting Employees know about their entitlement, and to have consistency within the employment agreement if other leave entitlements such as sick leave and bereavement leave are already set out.

What potential privacy issues need to be considered?

It will be important for Employers to keep in mind the sensitivity of domestic violence and the need for privacy when dealing with a request for Domestic Violence Leave. In particular Employers should consider carefully how they approach a request, what information is provided to other staff, and how leave and flexible working arrangements are managed. A Domestic Violence Leave policy may be helpful here.

What health and safety issues need to be considered?

Health and safety obligations should be considered when a request for Domestic Violence Leave is made, given that the staff member’s safety in the workplace may be impacted if they are suffering from trauma or other effects of domestic violence. Employers should turn their mind to what support can be provided to the affected Employee to ensure that they are kept safe at work. In addition to Domestic Violence Leave and flexible working arrangements such support could include, for example, sick leave, unpaid leave, and employee assistance services.

What proof can be requested from the employee?

In many cases an Employer will be comfortable that domestic violence has occurred based on the Employee telling them so. However the Act does allow the Employer to ask for proof of the domestic violence when a request for Domestic Violence Leave is made. The Employer will need to take care when deciding whether requesting proof is reasonable in the circumstances.

Where a request for proof is made by the Employer both the Employer and the Employee need to act in good faith. There is no guidance on what proof can be asked for. However proof could include things like a letter from a support worker, reports from medical professionals or Police, and orders made by the Court. Once again the Employer will need to ensure any proof received is treated as confidential and that the Employee’s privacy is not breached in any way.

How should a request for Domestic Violence Leave be responded to?

An Employer must respond to the request for Domestic Violence Leave as soon as possible but not later than 10 working days after receiving it, and must notify the Employee in writing of whether his or her request has been approved or refused

In or before giving the notification the Employer must provide the Employee with information about appropriate specialist domestic violence support services.

If the Employer refuses an Employee’s request, the notification given must:

  • state that the request is refused because proof required to be produced was not produced within 10 working days after the Employer receives the request and/or that the request cannot be accommodated reasonably on 1 or more of the non-accommodation grounds specified in section 69ABF(2) of the Act;

  • state the ground or grounds for the refusal; and

  • explain the reasons for that ground or those grounds.

What can employers do to prepare for a Domestic Violence Leave request?

Now is a good time for Employers to consider whether they have the right procedures in place to ensure that Employees affected by domestic violence are not treated adversely in the workplace.

It is worthwhile reviewing current employment agreements and policies with the new entitlement for Domestic Violence Leave in mind. As noted above a domestic violence policy which explains how requests for Domestic Violence Leave are handled and how the Employer will provide support can help, as well as updating flexible work policies.

How Pitt & Moore can help

At Pitt & Moore Lawyers our employment team can prepare and review Employment Agreements and Employment Policies, as well as review your current employment practices as part of an employment health check-up for your business.

Talk to us

If you would like advice on this topic or any other employment related issue please contact our Employment Team today.

Asking Employees to Work Extra Hours – a Common Fishhook for Employers

By Heather Collins

6 June 2023

It’s not uncommon for employers to need their staff to work extra hours from time to time. However care should be taken so that directions to work additional hours are compliant with the Employment Relations Act (the “Act”), and recorded correctly in the employment agreement. In short employers need to make sure that a correct “availability provision” is included in the employment agreement if the Act requires it in the circumstances.

You will recall that “zero hours contracts” were made illegal some time ago. These were agreements which required employees to be available for all work offered, without compensation for being available, and without any guaranteed hours of work. As an alternative to zero hours contracts availability provisions were introduced to allow some flexibility to request employees work additional hours, while also providing employees with increased protection.

Deciding on when an availability provision needs to be included in an employment agreement still manages to trip up employers. It’s important to understand when an availability provision is required, and if so what the clause should contain.

The key things to note are:

  • An availability provision needs to be included in an employment agreement if an employer can offer work at their discretion and the employee is required to perform that work if requested.

  • The employer must have genuine reasons based on reasonable grounds for including the availability provision.

  • An availability provision must set out:

a) what specific hours the employee is required to be available for work (in addition to the specified guaranteed hours of work); and

b) reasonable compensation for the hours that the employee must be available to accept work. Where the employee is on a salary it can be agreed in the employment agreement that the salary includes compensation (provided that this is reasonable in the circumstances).

  • When considering reasonable compensation the employer should take into account the number of hours the employee needs to be available, the proportion of those hours in relation to the employees guaranteed hours of work, any restrictions on the employee during the hours they need to be available and the employees pay under the employment agreement.

  • A deficient availability provision will not be enforceable, meaning that the employee will not be required to perform the additional hours of work.

  • If an employment agreement allows the employee to turn down an offer of work in addition to their guaranteed hours of work, an availability provision is not required.

How Pitt & Moore can help

At Pitt & Moore Lawyers our employment team can prepare and review Employment Agreements and Employment Policies, as well as review your current employment practices as part of an employment health check-up for your business.

What sets us apart is that each of our Employment Lawyers are also immigration experts. This means that we can advise on all employment issues affecting your business, including issues connected to hiring migrant workers.

Talk to us

If you would like advice on this topic or any other employment related issue please contact our Employment Team today.

The Importance of Workplace Policies

By Heather Collins

6 June 2023

Polices play a vital role in ensuring that Employers and Employees meet their obligations to each other. Policies also provide useful guidance on what is and is not acceptable in the workplace, and how breaches are dealt with.

It is worthwhile taking the time to consider whether the current policies in place for your business are adequate, and whether any additional policies are required.

We have outlined below some of the key employment policies which can be useful tools when running a business.

Health and Safety Policy

Health and Safety obligations of Employers have become increasingly onerous over the years. Having a well drafted Health and Safety policy tailored to your business can be an important part of meeting health and safety obligations.

A Health and Safety Policy often dovetails with other policies such as Drug and Alcohol Policies or Safe Driving Policies (discussed below).

Drug and Alcohol Policy

If Drug and Alcohol testing takes place at your business we recommend having a detailed Drug and Alcohol policy in place.

Ideally a Drug and Alcohol Policy should set out:

  • when an Employee is required to take a test (such as where there is reasonable cause, post-incident, and random testing)

  • what positions or areas at the worksite are safety sensitive (for the purposes of random drug testing)

  • how tests are performed

  • what is being tested for

  • what happens if an Employee refuses to take a test or tries to cheat on a test

  • What happens if an Employee receives a failed result (tests positive for drugs or alcohol).

Safe Driving Policy

If your Employees drive work vehicles as part of their employment then a Safe Driving Policy can ensure that they understand what their obligations are when using the vehicles and what to do if they are involved in an accident.

Harassment and Bullying Policy

Preventing harassment and bullying in the workplace, and dealing with this issue correctly if it arises, is an important obligation for all Employers. A Harassment and bullying policy can set out clearly to staff:

  • what constitutes harassment and bullying

  • what Employees are to do if they are subject to harassment or bullying at work

  • the procedure the Employer will follow if a complaint about bullying or harassment is raised.

Electronic Devices/Social Media Policies

It can be useful to have a policy setting out how Employees are to use internet, voicemail and email while at work (both for business purposes or personal use). If an employer is monitoring business emails and internet use then it’s important the Employees know about this.

If a cell phone, laptop or other electronic device is provided to the Employee then an Electronic Device Policy can set out useful information about how that device is used and when it can be used, as well as how business confidentiality is to be maintained.

A Social Media Policy can clearly set out what an Employee can post on social media about their employment and other employees. It can also prohibit posting information sensitive to the Employer.

Privacy Policy

We suggest that at a minimum a Privacy Policy sets out what information is being collected, why and how the personal information is gathered, who will hold the information, how long it will be kept for, how it will be stored, and how an Employee can access and correct that information.

If an Employer is looking to use surveillance cameras in the workplace or work vehicles (either for general security or to monitor staff) then staff should be told about this in advance unless there are good reasons not to. As mentioned above Employees also need to be told how the information will be stored, that they can view it, how to make a request to view it etc.

How Pitt & Moore can help

If you would like us to review your current policies or draft new policies for your business we are happy to assist. We can also advise on how to introduce changes to policies and new policies to staff in a procedurally correct way.

Talk to us

If you would like advice on this topic or any other employment related issue please contact our Employment Team today.

group of people using laptop computer

New Employment Legislation on the horizon

By Hannah-Jean McCarty

6 March 2023

There are numerous legislative changes on the horizon and employers are in for a busy year adjusting to new employment law developments.

Minimum Wage Increase

The minimum wage increase to $22.70 will come into effect from 1 April 2023. The increase is in line with recent increases in inflation and the current cost of living crisis. The starting out and training minimum wage will increase to $18.16. The effect on employees is significant, with the MBIE stating around 222,900 people are paid between $21.20 and $22.70.

There are concerns as to the effect on small businesses, with the 7% wage increase on previous increases which may introduce greater wage costs to the business.

Despite no legal requirement to provide a pay rise to those on $22.70, this minimum wage increase may give rise to pay inconsistencies for more experienced employees. If not already in the pipeline, it is a good time to create a strategy for managing pay relativity.

Holiday Act Changes

Although unclear when, changes to the Holiday Act are coming, The changes will introduce more transparency and clarity in determining aspects such as leave.

Annual Leave Payments (ALP) have previously been calculated at ordinary weekly pay or the average weekly earnings over the previous twelve months. A new calculation has been added that the ALP can also be paid at the weekly earnings over the last 13 weeks. Likely to have the most effect on commission based employment, as their earnings fluctuate and thus are more likely to be affected by this new calculation.

Timeframes on leave entitlement are soon to be changed. Employees will be entitled to sick leave on their first day of employment instead of waiting 6 months. Similarly, leave entitlement will change to pro rate basis, meaning an employee will be entitled to 2 weeks leave after 6 months of employment.

Parental leave will no longer affect ALP when an employee returns to work. Previously, an employee who returned from parental leave received a reduced ALP for 12 months following their return to work. However, under the changes the returning employee will receive their full rate for annual leave.

The Employment Relations (Extended Time for Sexual Harassment) Amendment Bill

The proposed bill will extend the time a person has to raise a personal grievance (PG) involving sexual harassment from 90 days to 12 months, to acknowledge that victims of sexual harassment may require more than 90 days to feel comfortable making a complaint. The 90-day rule does not reflect the way sexual harassment occurs in practice, this extension will allow complex and difficult sexual harassment matters to be dealt with more effectively. Employers need to be aware of situations where a PG involves allegations of sexual harassment alongside other allegations. Furthermore, some have expressed disappointment that the bill does not include workplace bullying or discrimination.

If you require any further information or clarification about upcoming legislation and how they may affect your business contact Pitt & Moore’s employment team on 03 548 8349.

Expect unions to soon impact your business

While union membership has been declining for a few decades, the balance of power is shifting back to unions. If you are an employer, you should be interested in the proposed “Fair Pay Agreement” system which will likely soon pass into legislation.

The intent of the legislation is described by the Labour Government as a way to lift wages of those on low to medium incomes, to “level the playing field” and to make a fairer system for workers. The National Party describes it as imposing mandatory union deals on workplaces. Regardless of your position on the political spectrum, this legislation will have significant impacts across the entire New Zealand workforce.

Who will be covered?

Any occupation can be covered by a fair pay agreement – cleaners, bus drivers, accountants, personal trainers, lawyers – the list goes on. Similarly, entire industries can be covered – such as all butchers and bakers in the supermarket/grocery industry, or all pickers and packers in the horticulture industry.

Effectively, once a union (or unions) has 1000 members (or 10%) support from a particular industry/occupation, or passes a public interest test – it can commence bargaining on behalf of all workers in that sector. Employers will be represented by representatives in negotiations. No detail has yet been released about how employer representatives will be selected.

What will the terms of the agreement be?

This will be up to the union representatives and the employer representatives.

It will be mandatory to reach agreement on normal hours of work, the coverage of the agreement, base wage rates, overtime and penalty rates. Other matters are mandatory to discuss, but not agree – such as health and safety requirements, training and development arrangements, flexible working, leave entitlements or redundancy.

How will the agreement be made and what impact will it have?

The agreement will be negotiated between the parties, who will receive funding and support from the Government to assist them in the process. If the parties cannot reach agreement – the Employment Relations Authority will step in and can refer the parties to mediation or facilitated bargaining. If that is unsuccessful, a party can apply for the Authority to “fix” the agreement.  

Once the negotiating union/employer representatives have agreed, it must be approved by a simple majority of both employee and employer voters. The negotiated agreement will then be the minimum standard for all employees in that industry/occupation.  

When are these changes coming in?

At the time of writing, the Fair Pay Agreements Bill is going through Select Committee. Submissions are open until Thursday 19 May 2022. The system is expected to commence shortly after the Bill has passed, at the end of 2022. The Government has indicated that it will ultimately be expanded to include contractors, but full detail about this has not yet been released. In the meantime, there will be penalties of up to $20,000 for an employer who tries to hire an employee as a contractor to avoid having to meet the requirements of a fair pay agreement.

Costs in the Employment Relations Authority

A further strengthening of unions has quietly occurred within the Employment Relations Authority. Usually when parties are in dispute, the successful party can get a costs award from the unsuccessful party, to help pay some of the legal costs the successful party incurred. This is a general presumption that applies in all levels of our court system, although each court and tribunal keeps a discretion over whether an order is made.

However, a new Practice Note advises that parties can expect no costs award to be made in an employer/union dispute before the Authority.  This is a significant change as unions can now initiate claims without fear of having to meet a costs award if unsuccessful.

Employers will need to choose the better of two options – settlement or unrecoverable legal fees with a public Authority determination. Which would you choose?

If you would like more information about the proposed Fair Pay Agreements Bill or assistance with a union dispute, contact Heather Collins or Sarah Thompson at Pitt & Moore – (03) 548 8349 or heather.collins@pittandmoore.co.nz and sarah.thompson@pittandmoore.co.nz.

person holding paper near pen and calculator

Financial Relief for Businesses Amidst COVID-19

By Heather Collins

28 August 2021

As the nationwide lockdown continues and a lot is still unknown, this is proving to be a difficult time for many businesses throughout New Zealand. However, the Government is rallying to help businesses to say afloat.

Below is a list of relief programs and initiatives that businesses may be able to utilise to weather the storm:

  1. COVID-19 Wage Subsidy August 2021 – Work and Income
  2. COVID-19 Resurgence Support Payment (RSP) (ird.govt.nz)
  3. COVID-19 Small Business Cashflow Scheme (SBCS)

Also available are the:

Covid-19 Leave Support Scheme (LSS) – which is designed to help businesses pay workers who have been told to self-isolate and can’t work from home; and

COVID-19 Short-Term Absence Payment (STAP) – for workers who have to stay at home while waiting for a Covid-19 test result and can’t work from home.

The devil, as always, is in the detail. In particular with the Wage Subsidy, businesses need to make a statutory declaration, agreeing to a range of obligations, which can be fairly onerous. It is critical that employers are able to meet these obligations, otherwise it would not be advisable to sign the declaration.

Talk to us

If you need advice on whether your business is eligible for any of the above mentioned programs get in touch with the team at Pitt & Moore and ask for Geoff Caradus or Heather Collins. We are here to help if you need our assistance!

New Accredited Employer Work Visa: What migrant workers need to know

By Elly Fleming

21 May 2021

This year sees many changes to the visa and immigration process if you are a Non-New Zealand resident or citizen wanting to live and work in New Zealand. 

There is a new type of work visa for migrant workers – the Accredited Employer Work Visa, and a new employer accreditation regime.

We outlined the new regime and implications for employers in our article earlier this week – Changes to Employer Accreditation – What New Zealand employers need to know.  

In this article, we address the implications for migrant workers who already hold employer assisted work visas or may be considering applying for one in the next 6-12 months.

Work visa categories affected by the change

A recap – the following six temporary work visa categories will be scrapped from 1 November 2021 and will be replaced with one type of visa – the Accredited Employer Work Visa:

  1. Essential Skills including the Essential Skills in Demand Lists
  2. Work to Residence – Long term Skill Shortage List occupation
  3. Approval-in-Principle (Essential Skills)
  4. Talent (Accredited Employer)
  5. Silver Fern (Practical Experience)
  6. Silver Fern (Job Search)

Immigration New Zealand (INZ) statistics show that from July 2020 to April 2021 there were 31,974 Essential Skills Work Visas granted. That is a very large number of people  who, at some stage, will need to move over to the new Accredited Employer Work Visa. It will be interesting to see how things go at INZ when they are hit with an influx of applications over the next 12 to 18 months!

New Accredited Employer Work Visa

We anticipate a relatively straight forward process for this work visa if your employer or prospective employer has completed their accreditation steps.

For example, under the new regime, the employer undertakes a labour market test before a migrant worker can then submit their application. This makes the process easier for you.

There are still some unknowns about the applicant process. For example, will there be an “age” limit to this visa, and what is its duration?

What does look likely is that you will still need to demonstrate that you meet health and character requirements, and you will also need to provide evidence of your work experience and qualifications to show that you are skilled.

The new Accredited Employer Work Visa might also have a pathway to residence, but we are yet to hear what this will look like.

Essential Skills Work Visa holders

Most migrant workers in New Zealand hold the Essential Skills Work Visas. If you hold this visa then you will bear the brunt of the changes, so if your visa is expiring within the next year, you will need to start considering your options.

This is because employers will be asking themselves whether there is benefit in obtaining accreditation from 1 November 2021 and retaining their migrant workforce, as there will be a cost to them. (Non-accredited employers will still be able to support work visa applications under the Essential Skills work visa category until 31 October 2021).

Skilled Migrant Category residence applications

It is worth considering your options if you have a live Skilled Migrant Category residence application in process. As it stands, if you are on an Essential Skills Work Visa and have a live residence application in process, then you are entitled to a further visa for six months, or one year, while your application is being assessed. Your employer is also exempt from conducting a labour market test.

But, from 1 November, those waiting for decisions on their residency applications may not be able to apply for an extension under the Essential Skills category – because this category won’t exist!

Clarification on this is being sought and should become clearer as time passes.

Talent (Accredited Employer) Work Visas

You can continue to remain on this visa, as long as your conditions do not change. You may already qualify for residence under the current Residence from Work visa category and it may be worth looking into this.

If you are working for an employer who is already accredited, and you do not hold a Talent (Accredited Employer) work visa, talk to us to see if you are eligible to apply under the current policy before you lose this opportunity.

Residence from Work Visa

If you have a Residence from Work visa application underway, and are requiring a further Work to Residence visa to be granted residence, you will be able to continue this process if you remain with your employer.

Open Work Visa holders – start planning ahead!

Arguably, if you are on an Open Work Visa, you are not affected. But that does not mean that these changes will not apply to you eventually – especially, if your pathways to residence become limited.

Those on an Open Work Visa who would be moving on to Essential Skills Work Visa should start thinking now about whether it is of benefit to apply for this visa sooner. For example, if your current Open Work Visa expires in less than a year, let’s have a chat about a possible route forward for you.

Skilled Migrant Category backlogs

This week, we were anticipating an announcement on the backlog of Skilled Migrant Category residence applications however, this did not end up happening. Watch this space.

Where to from here?

The new reforms may appear daunting and there are still a number of questions that remain unanswered.

The key message from INZ is that as long as your visa remains valid and you meet the conditions, you will not be affected. But, we are waiting for the “fine-print” that could change your immigration journey.

It is clear that pathways to residence and options for migrants will become very limited going forward. The window of opportunity is short, and for those whose work visas are expiring in the next 6-12 months now, more than ever, it is important to have the right advice to plan ahead.

Talk to us

Many of us in the immigration team come from migrant backgrounds. We understand your needs and, speak your language. The immigration process can be stressful and in our view, an initial discussion with us can go a long way.

If you require assistance or guidance with a visa application, please contact us.