By Elly Fleming

7 July 2022

The clock is ticking towards increased costs to keep their factories running and to fill their orders.

The message comes from the Government in the form of a seafood sector agreement that gives the sector a temporary exemption from some aspects of immigration changes announced in May.

If passed by Cabinet, it will be a reprieve from changes touted as a ‘rebalance’ of immigration rules but that would be a tough ask of a sector struggling to fill vacancies.

The intentions of the immigration changes are good – the main purpose being to slow or halt the increase of low-skill migrants on temporary working visas that was occurring before the pandemic when borders were open.

However, if you take the intentions at face value you might assume a lack of sector proactivity when it comes to getting more New Zealanders into those roles. Seafood New Zealand Chief Executive Jeremy Helson sought to correct this misconception with his response to the findings of the Ministerial Inquiry into the use and allocation of migrant labour in the seafood sector, released in December 2021.

At that time, Dr Helson highlighted the Inquiry’s conclusion that most workers in the seafood sector are local and that the reliance on migrant labour has steadily decreased. He also pointed out the Inquiry’s conclusion that there is a serious national labour shortage, which is an economy-wide issue, and that migrants are often available to do work that New Zealanders are often unwilling to tackle.

In short, there’s no quick fix. 

That doesn’t stop the sector from trying, however. Another example of sector proactivity is the Fit for a Better World initiative, a workforce transition plan developed by Seafood New Zealand, MPI and Deloitte that aims to lessen the industry’s reliance on foreign workers and encourage more New Zealanders into the industry.

Pitt & Moore advisors can explain the rules exactly as they apply to you and your business, so please contact us for some expert navigation and advice.

Facing up to a complex new immigration landscape

While the sector continues to work towards these goals, they face new impositions with the suite of immigration changes. Of these, the new single accredited employer work visa (AEWV) is a stand-out. The AEWV went live this Monday (4 July); from this point on an employer must be accredited under the AEWV to employ migrant workers. They must also pay the median wage or higher.

The AEWV criteria are complex, the process onerous, and many employers could be dissuaded from applying, at a time when we desperately need to fill vacancies during a sustained period of record low unemployment. Pitt and Moore Associate Elly Fleming describes this situation in her blog here.

That is a simplified description of the new landscape – a base upon which proposed sector agreements are overlaid, for a handful of industries.

The Ministry of Business, Innovation and Employment is currently considering seafood sector feedback on the agreement parameters, gathered during consultation during May and June. Final Cabinet decisions are expected this month and implementation would happen in September or October.

The agreement would grant the sector a temporary exemption to the requirement to pay migrant workers on AEWVs above the median wage. This will hopefully enable employers to fill part-year, low-skilled processing jobs.

There is, of course, a catch.

The access to this essential migrant labour for seafood processing – that the sector has become most reliant on and developed businesses around – is proposed to be capped at 200 workers with the allocation managed by Seafood New Zealand. Employers are required to test the labour market for New Zealanders by first advertising the jobs locally.

They must also have a ‘workforce transition’ plan in place towards building a New Zealand workforce. It is assumed that this latent local workforce (somewhat of a unicorn these days) can be achieved through better workforce offerings such as training, and through initiatives to improve retention.

The agreement acknowledges that the sector needs time to achieve this transition. How much time? The Ministerial Inquiry found that it could take as long as 10 years to do this, though whether that much time is granted remains to be seen.

The second main part to the agreement is that the Foreign Fishing Crew visa will remain in place – one of only a few visas to remain intact under the immigration changes. It will be capped at pre-pandemic levels (currently proposed to be 800 visa holders onshore at one time), labour market testing is mandatory for inshore fishing jobs and employers are expected to transition to median wages over five years.

Another hit to the back pocket

Outside of the agreement, the main immigration changes still apply if employers can afford to recruit migrants on AEWVs for onshore roles paid above the median wage. They can also continue to employ workers on Working Holiday Scheme visas, and others with open work rights, and these visas are not subject to wage thresholds. But can we bank on the return of working holiday-makers now the borders are open?

The message to the seafood sector is clear – there is little way to manage increasing wage costs. These increases will come on top of rocketing fuel prices, plans to recover no less than $10M from inshore fishers for the compulsory onboard camera roll-out and other inflationary pressures.

This makes our message to New Zealanders as equally clear – be prepared to pay more for your fish and chips. It’s getting more expensive than ever to supply local retailers with the seafood we love to eat and there will be consequences to consumers.

Talk to us

If you are unsure of how this complex raft of new immigration rules applies to you, your accreditation application or recruitment plans and processes, we can help.

We offer an initial 15-minute free consultation to all new clients to discuss your particular circumstances and what services we can provide.

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

By Elly Fleming

12 May 2022

In our April blog post we described the complexities of the then-newly announced Accredited Employer Work Visa (AEWV) criteria.

The criteria will rule out some businesses for accreditation and could dissuade others from applying, at a time when many businesses still desperately need to recruit specialist workers from overseas.

Now, with the announcements yesterday from Prime Minister Jacinda Ardern and Immigration New Zealand (INZ), we have further detail about upcoming changes and process. There is substantial media coverage and commentary happening, following the announcements. In this blog, I’ll focus on several need-to-know new fishhooks. I’ll also outline again the accreditation criteria that remain drawbacks for some employers.

To quickly summarise the timeframes: With the border now fully reopening from 31 July 2022, from 4 July all work visa categories will be open for applications (including the AEWV) and from 31 July all student and visitor visa categories will reopen. The maritime border will also reopen on 31 July.

Overall, we anticipate that visa processing timeframes will blow out across the board as INZ won’t be able to cope with the volume in the coming months. We also anticipate that the following fishhooks will complicate the process for many employers, to the point that many risk missing out.

Pitt & Moore advisors can explain the rules exactly as they apply to you and your business however, so please contact us for some expert navigation and advice.

In 2023 all employers will need accreditation if they hire migrants

A major change that has gone under the radar is a new requirement from 2023 that will see all employers who hire migrants on any visa (not just on AEWVs) needing to be accredited (see more detail about accreditation below). This major policy change is contrary to all of the messaging that Immigration NZ and the Government has been putting out to date. It will have significant implications for employers across all industries.

Different rules for partners of AEWV work visa holders

From December 2022 partners of AEWV visa holders whose occupations are not on the Green List or who are not earning at least twice the median wage in other roles will not be entitled to an open partnership-based work visa but will need to qualify for an AEWV or an alternative temporary work visa in their own right. This change may not be widely known yet and is likely to discourage many migrants from coming to New Zealand.

Critical shortages may continue despite the green list

The fishhook here is that the two Green List workforce categories that come with either immediate or a two-year pathway to residency, will not address critical shortages in some workforce types.

These include caregivers in nursing homes, workers for meat processing, seafood and farming industries and workers for the hospitality and tourism sectors. Pathways to residency have not been offered for these roles because they are seen by the Government as low-skilled. But these are industries that need access to workers at all levels – not just highly-skilled workers.

Changes to post-study work rights and cost of living requirements for future international students

The fishhook here is tougher rules for new international students, including higher fund requirements for living costs in New Zealand and significant changes to post-study work rights.

Meanwhile, the following ‘instructions’ for employer accreditation remain.

You need to be accredited

Businesses need to be accredited before they can recruit overseas workers under the AEWV. This is INZ’s way of incentivising businesses to employ more New Zealanders and only recruit offshore for what they consider to be genuine shortages.

The accreditation criteria will rule out a number of businesses and dissuade others from even trying to get accreditation.  Please jump back to my April blog for full information, but to summarise again briefly here:

1. A New Zealand Business Number (NZBN) is required: There are very few exceptions to this rule.
   
2. Your business must show it’s viable: This will challenge some businesses after years of COVID-19-related downturns. You must show that you’ve not made a loss over the last 24 months, have a positive cashflow for each of the last six months, and more.
   
3. Helping migrant workers settle: Settlement support activities now rest with the employer rather than INZ. You must show you are trying to help migrants settle in New Zealand, provide a raft of information to employees.
   
4. Completing Employment New Zealand modules: You must give AEWV employees time during paid work hours to complete the modules. If you are hiring managers, human resource managers or directors, or making recruitment decisions involving AEWV holders, you must also complete the employer modules on employment rights.
   
5. Passing on costs: You cannot pass on costs related to your accreditation or employment processes to your AEWV employee. We recommended you also review your employment contracts for any relevant clauses and update the contracts.
   
6. Additional requirements for franchisee employers: Franchisees are required to be trading or carrying out business in New Zealand, for at least 12 months prior to application. A minimum of 15% of a franchisee’s employees must be New Zealand citizens or residents and there are more rules about minimum hours and ownership.
   
7. Losing accreditation: If you breach any of the criteria for accreditation, you will lose it. Additionally, if for any reason you breach the Immigration Act 2009, you will also face a charge and stand-down period.
   
8. Additional criterium: A new, additional criterium requires employers employing all migrants (not just on AEWVs) to be accredited.

Talk to us

If you are unsure of how this complex raft of new rules applies to you, your accreditation application or recruitment plans and processes, we can help.

How Pitt & Moore can help

We offer an initial 15 minute free consultation to all new clients to discuss your particular circumstances and what services we can provide.

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

By Elly Fleming

12 April 2022

The just released criteria for employer accreditation will rule out a number of businesses for accreditation, with others potentially no longer wanting to try applying; businesses who could be desperate for specialist workers from overseas.

The criteria are part of a package of instructions for how to become, and stay, accredited.

Immigration New Zealand’s aim is to incentivise businesses to employ more New Zealanders and only recruit non-New Zealand citizens or residents under the Accredited Employer Work Visa (AEWV) for genuine shortages.

Other new criteria aim to reduce the risk of businesses exploiting migrant workers, the intention of which we support, but additional burdens now lie with employers that have to be clearly implemented, or they will be punishable.

Below are a few highlights from INZ’s accreditation instructions. If you need help navigating these instructions, please contact us.

A New Zealand Business Number (NZBN) is required 

If you want accreditation, you must have a NZBN (unless you are a foreign diplomatic or consular mission (such as an Embassy, High Commission or Consulate).

You can apply for a NZBN if you’re self-employed (a sole trader), a partnership or trust, and you’re currently in business in New Zealand, as defined by the New Zealand Business Number Act 2016.

To apply for a NZBN click here.

Your business must show it is viable

This is potentially a tricky criteria for some businesses, after years impacted by COVID-19, as employers must:

1. have not made a loss (before depreciation and tax) over the last 24 months; or
2. have a positive cash flow for each of the last 6 months; or
3. have sufficient capital and/or external investment (for example funding from a founder, parent company or trust) to ensure the employer’s business remains viable and ongoing; or
4. have a credible, minimum two-year plan (for example by having contracts for work) to ensure the employer’s business remains viable and ongoing.

You need to prove you are viable by showing evidence such as; financial statements such as an annual report and profit and loss statements, evidence of start-up capital and/or funding, a cash-flow statement and/or credible revenue forecast, contracts for work, GST returns, income tax returns, PAYE returns, bank statements, stock lists/orders, and/or lease agreements for business premises or space.

Settlement support activities now rest with the employer rather than INZ, and you have to show you are trying to help migrants settle in New Zealand, within one month of the AEWV employee starting work with you.

Helping migrant workers settle

For example you will need to provide a raft of information to your migrant employees, such as local community and services information like where they can get accommodation, transport options (including driving and driver licence information, and public transport), the cost of living, how to access services such as healthcare, the Citizens Advice Bureau, and relevant community groups. You will need to show them how to obtain an IRD number, how to get any industry training and qualification information and options. And also provide any specific job or industry hazards.

You also must provide sufficient time during paid work hours for these employees to complete all of Employment New Zealand’s online employee modules.

The settlement support activities must be completed within one month of the employee beginning work with you. These are important pastoral care activities, but as you may not have implemented some of them before, it is important to get this right, and be ready to show INZ you are a good employer.

Completing Employment New Zealand modules

You must provide sufficient time during paid work hours for AEWV employees to complete all of Employment New Zealand’s online employee modules. Evidence that the modules have been done must also be shown.

Likewise, if you are hiring managers, human resource managers or directors, or making recruitment decisions involving AEWV holders, you must also complete Employment New Zealand’s most recent online employer modules on employment rights.

Passing on costs

You can’t pass on costs related to your accreditation or employment processes to your AEWV employee, and you need to show you aren’t passing any costs on. We recommended you also review your employment contracts for any clauses which indicate costs may be passed on to employees – these will need to be removed for AEWV visa holders.

For example, you can’t pass on any recruitment, training or equipment costs, in New Zealand and outside of New Zealand. This includes costs related to advertising, recruitment agency fees, employer accreditation and Job Check application fees, and any other associated costs such as immigration adviser fees. And, you can’t pass on compulsory training and induction costs, health and safety equipment, or branded uniforms. And, you can’t pass on costs for trade testing, or tools where the ownership of the tools is retained by the employer.

There are other costs you can no longer on charge to employees, so again it is important that you don’t include such clauses in your contracts, and that you can prove you aren’t passing on these costs.

Additional requirements for franchisee employers

Having not had any indication of what might be required of franchisees, the instructions are finally out.

Franchisee employers are required to be trading or carrying out business in New Zealand, as a franchisee, for at least 12 months prior to the application being made, and a minimum of 15% of the employer’s employees must be New Zealand citizens or residents who are guaranteed at least 30 paid hours per week, unless the employer has no more than one employee.

An employer may use another legal entity’s history of operating as a franchisee to meet the above, if at least 66% of the ownership of the employer and the other entity is the same, and the employer and the other entity are in the same sector and provide the same goods and/or services.

You have to show evidence of the above, such as certificates of occupancy or lease agreements for business premises or space, evidence of bank transactions, tax records, stock lists/orders, evidence of owners of the employer (organisation) and affiliated organisation.

Losing accreditation

If you breach any of the criteria for accreditation, you will lose it. Additionally, if for any reason you breach the Immigration Act 2009, you will also face a charge and stand down period.

Talk to us

If you are unsure where this leaves your accreditation application and you need help, please get in touch with the team at Pitt & Moore.

How Pitt & Moore can help

We offer an initial 15 minute free consultation to all new clients to discuss your particular circumstances and what services we can provide.

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

By Heather Collins

23 March 2022

Immigration New Zealand (INZ)’s latest changes to the Accredited Employer Work Visa (AEWV) process will make it harder and more expensive for employers, particularly in the regions, to hire migrant staff.

The AEWV is a new temporary work visa that will replace the Essential Skills Work Visa and Talent (Accredited Employer) Work Visa. The AEWV opens to migrant applications on 4 July this year.

This week’s changes are outlined below.

High-volume accredited employers must now pay the median wage

INZ had previously stated that migrants working for employers with high-volume accreditation (hiring five or more migrant workers) must be paid at least 10% above minimum wage or be covered by a collective agreement. The new rules cancel that in favour of a requirement that all accredited employers hiring migrants must pay the median wage. This change will impact employers in regions, where wages are lower.

The median wage increases from $27.00 to $27.76 an hour on 4 July 2022

This aligns with the date that the AEWV opens to migrant applications. All jobs offered to migrant workers under the AEWV must now pay at least $27.76 per hour.

The labour market job check is no longer regionalised

INZ had previously said that AEWV jobs in the regions did not have to be advertised. It now says that all jobs paying less than twice the median wage ($55.52 per hour), anywhere in the country must be advertised in New Zealand before they can be offered to a migrant. This is another blow for regional employers, where the greatest staffing shortages are in lower paid roles.

The date that employers can apply for accreditation has been pushed back from 9 May to 23 May 2022

This is likely to increase the bottleneck at INZ for employers wanting to get their migrant workers’ visa applications into the pipeline when the visa launches on 4 July.

Applications for Job Checks now open on 20 June.

Uncertainty about exemptions is ongoing

INZ is still considering whether there will be any exemptions to the median wage rule and whether additional restrictions should apply for a limited number of roles. We await more clarification on this.  

It’s going to be expensive

INZ has announced the fees for AEWV applications and they are higher than we expected.  A standard employer accreditation application is $740 for up to five workers. High-volume accreditation applications for six or more workers attract a fee of $1,220 per employer.

The job check fees sit at $610, which the employer also has to pay. There are further fees for reconsideration of declined applications, franchisees and third party-controlled applications.

Meanwhile, migrants pay $595 to apply, which their employer may wish to pay for them.

We recommend employers seek advice about how best to navigate these new rules and get their applications for accreditation prepared in advance to avoid unnecessary delay in processing. Getting the right advice early will also reduce the likelihood of having an application declined.  

Talk to us

For further detailed advice or assistance with regards to the matters discussed in this article, please get in touch with the team at Pitt & Moore.

How Pitt & Moore can help

We offer an initial 15 minute free consultation to all new clients to discuss your particular circumstances and what services we can provide.

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

By Elly Fleming

18 March 2022

People in our local tourism, hospitality and retail businesses are finally going to cut a break, with fully vaccinated Australian tourists now due to land in the country from 11.59pm April 12, and fully vaccinated tourists from visa-waiver countries from 11.59pm May 1.

The lack of visitors to New Zealand over the last two years has been acutely felt throughout our business community, so bringing these border opening dates forward is great news.

When speaking with these businesses, the key concern now is that their workforce recovers from COVID-19 in time. A great number are at half capacity at the moment, with staff away with the virus, so they are hoping everyone is going to be back on deck and healthy in time to serve our visitors when they come.

Will the working holiday visas that opened this week help the tourism sector’s staff shortages? Maybe, but possibly not in time for Easter.

On Monday 14 March, working holiday visas opened for countries that we don’t have a visa cap with, namely Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Sweden, United Kingdom, USA, and Japan.

People from these countries can apply for these visas online now, but we are finding that Immigration New Zealand is under huge pressure across the board, and visas are taking a lot longer to process than they normally would; in some cases months longer than normal, even for simple applications.

It is undoubtedly tough out there at the moment for many, with change being the only constant we can rely on – that and the right support, and a bucket load of patience.

Tourists from visa-waiver countries must request an NZeTA before coming to New Zealand.

Tourists will not need to isolate on arrival, instead they are required to have a pre-departure test and two further tests on day 0/1 and 5/6.

With the borders reopening, it is as important as ever for individuals and businesses to get professional legal advice on their options as well as assistance with border entry exception requests.

We have a thorough understanding of the applicable immigration policy and our team has successfully assisted numerous individuals and Kiwi employers to obtain approval under the available border exception categories. 

Talk to us

If you have any immigration related questions including about border exceptions, please contact our Immigration team today on +64 3 545 6714 for professional legal advice that will give you a peace of mind.

By Elly Fleming

18 January 2022

As we have noted before, employers looking to employ skilled migrant workers will be impacted by this year’s introduction of the Accredited Employer Work Visa (AEWV) – a new temporary work visa that opens to applications from employers on 9 May 2022 and to applications from migrants on 4 July 2022. This change will impact many employers, in particular those in key industries such as agriculture, hospitality, construction and tourism, which rely on migrant labour to fill shortages.

Immigration New Zealand (INZ) is replacing the Essential Skills Work Visa, the Talent (Accredited Employer) Work Visa and the Long-Term Skill Shortage List Work Visa with the AEWV.

INZ says the AEWV will reduce reliance on lower paid temporary migrant workers and increase the overall skill level of migrants coming to work in New Zealand. INZ also says it will combat migrant exploitation and misuse of the immigration system by filtering out employers, who have previously breached immigration requirements or employment standards, at the accreditation stage.

However, it will also introduce more red tape for employers, who will have to deal directly with INZ and go through the accreditation process before advertising jobs. The process is more complex and bureaucratic than anything we have seen before in New Zealand, and we recommend employers be aware of the requirements and get ahead of the game.

In short, INZ is introducing a three-check process to manage applications and ensure that employers and migrants fit the new requirements. The three checks are:

1. Employer accreditation
2. Job check
3. Migrant check

Employer accreditation

The first step sees employers able to apply from 9 May 2022 to ensure they can get accreditation before migrant applications open on 4 July. Employers don’t need to be accredited until they want to start employing migrants, but delay in obtaining accreditation means delay in an employer’s ability to support a migrant’s application.

Standard accreditation is required for up to five migrant workers on AEWV, and high-volume accreditation is for those employing six or more migrant workers on AEWV.

The requirements for standard accreditation include being IRD registered and holding a New Zealand Business Number, having no recent history of regulatory non-compliance, having appropriate employment documentation, and taking steps to minimise the risk of exploitation.

In addition, for high-volume accreditation, jobs must meet a minimum pay requirement of 10 percent above the minimum wage or be covered by a collective agreement.

There are further requirements for franchisees and for businesses that place AEWV holders with third parties, as it is considered that the risk of migrant exploitation is increased in such work environments.

Job check

The second check INZ will carry out is a job check or labour market test to ensure that, for any job offered through the AEWV scheme, the employer holds accreditation, the employment is acceptable, and no New Zealanders are available.

The labour market test requirements vary for jobs paying above and below the median wage and depend on whether the job is located in a city or a region. There are also specific job advertising requirements to ascertain availability of New Zealanders to do the job.

A Labour Market Test is not required if;

• the job pays 200% of the median wage, currently the median wage is NZD $27 an hour
• the job is in the regions and pays at, or above, the median wage
• the job is on a skill shortage list, in a city, and pays at, or above, the median wage.

Migrant check

The final step is the migrant check, ensuring the applicant meets the visa requirements. This is done through online applications, available from 4 July 2022, and ensures that the applicant is suitably qualified and meets requirements in terms of health, character and bona fide credentials.

A migrant will not be able to submit their application unless the employer is already accredited and the job has passed the job check stage.

What is next?

It is not yet known how long it will take INZ to process an accreditation application or to complete the three-check process. As a result, we recommend that employers don’t leave applying for accreditation to the last minute.

We also don’t know if employers will have review or appeal rights where negative decisions are made. We expect further information from INZ to come, including tools for employers and migrants, a definition of ‘franchisee’ for accreditation, and details around fees for the three-check process.

Initially, this system change will undoubtedly increase costs, time and red tape, and support for navigating the processes involved will be needed.

Talk to us

Once in the system as an accredited employer things should become more streamlined. In the meantime, our immigration specialists at Pitt & Moore are already helping employers prepare for the process – please don’t hesitate to get in touch on 03 548 8349 if we can help in any way.

How Pitt & Moore can help

We offer an initial 15 minute free consultation to all new clients to discuss your particular circumstances and what services we can provide.

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

By Elly Fleming

3 December 2021

The detail of the  New Zealand Government’s 24 November announcement about opening our borders to international travellers next year is very disappointing for many New Zealand businesses and families. For those in the tourism and hospitality sectors in particular and for employers generally  the announcement falls far short of what we would have liked to have seen.

The changes revolve around dismantling MIQ for fully vaccinated international arrivals in favour of self-isolation, but do not expand the range of people who are eligible to enter New Zealand before 1 May 2022 to include those who do not fit the current border entry exemptions eligibility criteria.

In practice this means, that many families won’t be reunited in New Zealand until some time after 1 May 2022.

Immigration New Zealand’s current advice is that processing of visa applications lodged offshore remains suspended until at least 5 August 2022. 

For New Zealand businesses, this means that as things currently stand we won’t see an increase in international tourists or students until the middle to late 2022 at the earliest.  And even then there are concerns around the number of tourists who will want to come to New Zealand given the need for the fully vaccinated to enter 7 days self-isolation on arrival.

New Zealand employers will also continue to struggle to get skilled workers for a range of vacancies across various sectors. 

The changes announced mean that from 17 January 2022 fully vaccinated New Zealand citizens, certain New Zealand residence-class visa holders and other eligible travellers arriving from Australia will be able to self-isolate rather than go through MIQ.

From 14 February 2022, this will also apply to New Zealand citizens, certain New Zealand residence-class visa holders and other eligible travellers arriving from all but high-risk countries. These people are already able to enter New Zealand under the current settings, so the only difference is that their entry is no longer restricted by the availability of MIQ vouchers.

These changes  will be welcome news to many stranded overseas but comes too late for those wanting to be home for this Christmas.

From 1 May 2022, fully vaccinated foreign nationals with eligible visas will be able to enter without MIQ, but the Government has not so far announced any changes to visa eligibility settings or when Immigration New Zealand will recommence processing visa applications submitted by people who are outside the country.

So, in terms of immigration for skilled workers, there is little at this stage for us to get excited about. New Zealand still cannot compete with Australia, which is opening its borders much faster.

We will watch with interest to see how the Government’s visa strategy rolls out and whether they will bring forward the timing for processing of offshore visa applications. But our warning to our clients is that the impact of this current curtailment of skilled migrant entry is likely to be felt for a long time – May 2022 is not, as we currently understand it, likely to see a significant softening of visa eligibility for foreign nationals seeking to come and work in Aotearoa New Zealand.

Talk to us

We encourage our clients to contact us for further advice in this area. We are well practiced at navigating the difficulties presented by the current visa eligibility regime and can advise you on the best strategy to support your immigration needs.

How Pitt & Moore can help

We offer an initial 15 minute free consultation to all new clients to discuss your particular circumstances and what services we can provide.

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

By Elly Fleming

28 August 2021

Earlier this year, in our article entitled ‘Compulsory Employer Accreditation Coming your Way in 2021’ we wrote about major upcoming changes to the immigration system which will have a significant impact on New Zealand businesses who hire and rely on migrant workers.

To recap, changes to the current immigration system have been contemplated by the Government as early as 2019 and the implementation of the new framework was initially intended to take place in early 2020, but was put on hold only to be revived this year.

In an abrupt move, the Government announced that the launch of compulsory employer accreditation or the new Accredited Employer Work Visa scheme, which was due to come into effect from 1 November 2021, has been deferred yet once again, now to mid-2022.  A further announcement on the exact date when the new scheme will be introduced will be made as soon as the Government gets its act together. This may take some time! or it may be deferred yet again?

It has been reported in the press that it is the Government’s aim to decrease reliance on lower-paid migrant workers, increase productivity, address infrastructure challenges and ultimately increase the skill levels of workers migrating to New Zealand. The Government, however, has not clearly articulated to date how this aim is going to be achieved, particular in light of the impact the Covid-19 pandemic has had around the globe.

We can only assume that this will be eventually done through tightening of visa criteria across residence and temporary work visa categories, as well as reducing the number of pathways to residence. For example, the Government may introduce stricter requirements for visa applicants, such as higher educational or experience requirements and stricter labour market testing to support businesses and address skills shortages.

The lack of clear direction and communication from the Government has created ambiguity not only for migrant works but also for countless New Zealand businesses who hire and rely on them. Overall, adding to an already stressful environment with significant labour shortages and resulting in distrust or lack of faith in the Government’s policy decision making capability.

Covid-19 and its impact on our country make for an awkward situation, one that bridges public health, the economy, our communities and the world at large. But it’s also prompted some important dialogue regarding how the knee-jerk reactions of the Government are going to affect New Zealand in the long-term.

How Pitt & Moore can help

We offer an initial free consultation to all new clients to discuss your particular circumstances and what services we can provide.

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

Talk to us

For clarification on how the above announcement may affect you or your business, or for any other immigration assistance, please contact our Immigration Team for professional legal advice that will give you peace of mind.

Many migrants currently work in the dairy industry, filling skills shortages on farms when there aren’t enough Kiwi workers available. A large proportion of migrant workers in this sector hold employer assisted Essential Skills Work Visas.

In a recent development, from 15 February 2021, Immigration New Zealand have introduced new task descriptions for Dairy Cattle Farmers that will inform the assessment process for Essential Skills work visas and Skill Migrant Category resident visas. This move may assist migrant workers in the dairy industry to secure a pathway to residence, which to date has not been possible.

Statistics New Zealand and the dairy sector – which contributes around 3.5% to our GDP – have developed new task descriptions for dairy farming workers to better represent the skill level requirements in the industry.

There are three new subcategory roles under the occupation of Dairy Cattle Farmer (121313) in the Australia and New Zealand Standard Classification of Occupations (ANZSCO). These roles are:

–         Dairy Farm Manager (Skill Level 1)

–         Assistant Dairy Farm Manager (Skill Level 3)

–         Dairy Herd Manager (Skill Level 3)

While the new descriptions don’t appear under the current Australia and New Zealand Standard Classification of Occupations (ANZSCO) version 1.2, Immigration Officers have been instructed that applications made after 15th February 2021 will need to be assessed based on the immigration-specific view for Dairy Cattle Farmer roles. Immigration New Zealand will continue to refer to ANZSCO 1.2 for all other types of roles when assessing residence and temporary entry applications.

How Pitt & Moore can help

We offer an initial free 15-minute consultation to all new clients to discuss your particular circumstances and what services we can provide.

Talk to us

If you would like advice on a work visa application or on a pathway to residence based on your employment in the dairy industry, please feel free to contact Elly Fleming Senior Solicitor, Pitt & Moore Lawyers.

From Wednesday, 7 October 2020, the process for hiring migrant workers under the Essential Skills Work Visa category will change slightly according to oversupply and undersupply of roles.

The government and the Ministry of Social Development (MSD) have created lists of occupations and regions facing clear over- or under-supply of New Zealanders on Job Seeker Support.

Historically, New Zealand employers have been required to list job vacancies with Work and Income (WINZ) to determine whether any local workers are able to fill the role first. If that’s not possible, WINZ would send through a Skills Match Report to support a work visa application.

In response to an increase in New Zealand job seekers, MSD have classified ‘lower skilled’ roles (that is, those paid below the national median of $25.50 per hour) that are either oversupplied or undersupplied, and slightly altered the requirements for Skills Match Reports accordingly. Those roles are defined by their Australian and New Zealand Standard Classification of Occupations (ANZSCO) codes for clarity.

These changes only affect visa applications made to Immigration NZ on or after 7 October 2020, and any applications submitted prior to this date will simply be considered as part of the previous application assessment process.

Changes for oversupplied roles

If roles are oversupplied, WINZ will not send through a Skills Match Report, thereby encouraging New Zealand employers to fill roles with local talent first.

At time of writing, this includes many but not all roles in retail and hospitality, construction, administration and call centres, manufacturing and warehousing, and transport.

For occupations in regions with oversupply, employers can move straight to engaging with MSD to recruit NZ job seekers when necessary.

Changes for undersupplied roles

Undersupplied roles are diverse and vary between regions, but can include registered nurses, dairy farm workers, engineers, deck and fishing hands, and wine makers. You can check regional availability here.

For those occupations and regions dealing with an undersupply of NZ job seekers, employers will no longer need a Skills Match Report for those ‘lower skilled’ roles. Of course, employers will still have to show to INZ that they’ve tried to fill the role with local talent first.

For roles that aren’t on either the over- or under-supply lists

In this case, there’s no change to the process for hiring; employers will still require a Skills Match Report before they can hire a migrant earning less than the national median wage of $25.50 per hour.

The changes are only temporary, and will undoubtedly shift as the labour market responds to the ongoing effects of COVID-19. We expect the lists to be reviewed in early 2021, or sooner if there are big shifts.

Existing lower skilled migrant staff currently employed in roles on the oversupply list can continue to work until their visa expires, at which point their case will be revisited. Keep in mind that the most recent changes mean that Essential Skills Work Visa holders that would have otherwise expired before the end of 2020 have been extended for an additional six months, giving these workers a half-year reprieve.

Remuneration and median wage

Applicants who are paid below the median wage, currently $25.50 per hour, will need to meet more stringent requirements to be eligible for an Essential Skills Work Visa.

Overview of the rules

If paid below $25.50 per hour:

• Employers will need to engage with MSD and obtain a Skills Match Report
• Employers will also need to advertise the role and consider New Zealanders
• The maximum duration for each visa will be six months for the next 18 months (i.e. during the period of 10 July 2020 to 10 January 2022)
• The maximum combined duration of all work visas in jobs paying below the median wage is three years at which time holders of this visa will be subject to a stand-down period of 12 months.
• You’ll still be able to get support visitor visas for partners (partners can apply for a work visa in their own right)
• You’ll still be able to get support visitor or student visas for dependent children (subject to meeting the minimum income threshold)

If paid at or above $25.50 per hour:

• Employers will need to advertise the role and consider New Zealanders
• The Skills Match Report is not required
• The maximum duration of each visa is three years
• There’s no maximum combined duration, so you’ll not be subject to stand-down
• You’ll still be able to get support visitor or work visas for partners
• You’ll still be able to get support visitor or student visas for dependent children (subject to meeting minimum income threshold).

Get professional advice

We highly recommend employers and temporary visa holders who currently hold or want to apply for a Essential Skills Work Visa get in touch with us now so we can expertly guide you through your (and your family’s) options for remaining in New Zealand.

How Pitt & Moore can help

We offer an initial free consultation to all new clients to discuss your particular circumstances and what services we can provide.

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 and visa-related issues.

Talk to us

We don’t just advise on the visa requirements, we can ensure that you receive comprehensive legal advice on all aspects applicable to your particular circumstances, including compliance and employment.

Contact our Elly Fleming on 03 548 8349 or Elly.Fleming@pittandmoore.co.nz for professional legal advice that will give you peace of mind.