The Proposed Changes
Immigration New Zealand has just provided an update on the new proposed 2021 Accredited Employer Work Visa (also known as the AEWV) and the new Employer Accreditation system on 7 May 2021. This article will provide an overview of the proposed changes and explain the new employer-led visa process.
Please note that Immigration New Zealand has indicated that these are still proposed changes, so there may still be further minor adjustments to the policy.
Broadly speaking, the new proposed 2021 changes are:
- The introduction of the Accredited Employer Work Visa which will replace 6 existing work visas.
- Roles that require occupational registration and work in the health or education sector, or
The New Accredited Employer Work Visa
Immigration New Zealand is proposing to introduce the new Accredited Employer Work Visa to replace 6 employer-assisted work visa categories on 1 November 2021. The affected categories are listed below:
Temporary visas that are not listed above will not be replaced by the Accredited Employer Work Visa. These include Recognised Seasonal Employer (RSE) Limited Visa, Working Holiday Schemes, Post-Study Work Visa, Fishing Crew Work Visa, Religious Worker Work Visa, Specific Purpose Work Visa, Partnership Work Visas, and work visas granted based on international or humanitarian reasons.
Applications for the 6 affected existing work visa categories will close on 31 October 2021. Existing work visas in a category that is being replaced will remain valid until the work visa expires or if the visa becomes invalid.
The new Accredited Employer Work Visa will still specify the employer, job role, and job location. Variation of Conditions will still exist and be required for certain situations. On 7 May 2021, Immigration New Zealand stated that they are still working through the Variation of Conditions policy and will provide further policy updates in due course.
Applications for the 6 affected existing work visa categories will close on 31 October 2021. Existing work visas in a category that is being replaced will remain valid until the work visa expires or if the visa becomes invalid.
The New Proposed Accredited Employer Work Visa Employer-Led Visa Process & Employer Accreditation System Overview
1. The Employer Check.
2. The Job Check.
3. The Migrant Worker Check.
The Employer Check
- What It Means For Employers
The Employer Check will replace 3 existing employer policies. The renewal applications for the following policies will close on 30 June 2021:
- Approval in Principle gained by an employer to hire migrant workers on Essential Skills Work Visas.
- The existing Employer Accreditation system to hire migrant workers on Work to Residence – Talent (Accredited Employer) Work Visas.
- The existing Labour Hire Accreditation to hire migrant workers on Essential Skills Work Visas.
Under the new proposed Accredited Employer Work Visa employer-led visa process, it will be mandatory for all employers (including existing Accredited Employers) to be accredited under the new proposed Employer Accreditation system before they can hire a migrant worker on the new proposed Accredited Employer Work Visa. The proposed implementation timeline is as follows:
The new proposed Employer Accreditation system will be launched in late September 2021. Employers who are wanting to support migrant workers on the Accredited Employer Work Visas immediately on the introduction date (1 November 2021) will be able to apply for the new Employer Accreditation during late September 2021, before the official 1 November 2021 Accredited Employer Work Visa introduction date. This will allow employers to gain accreditation and be ready for when the new Accredited Employer Work Visa is introduced. Employers have until 31 October 2021 to support migrant workers under the current work visa policies.
Under the new proposed Accredited Employer Work Visa employer-led visa process, it will be mandatory for all employers (including existing Accredited Employers) to be accredited under the new proposed Employer Accreditation system before they can hire a migrant worker on the new proposed Accredited Employer Work Visa.
Employers who are currently supporting migrant workers on Work to Residence – Talent (Accredited Employer) Work Visas or Essential Skills Work Visas do not need to be accredited under the new Employer Accreditation system until they want to support a migrant worker on the new Accredited Employer Work Visa. For example, if an employer has a migrant worker whose Essential Skills Work Visa expires in March 2022, the employer does not need to be accredited under the new Employer Accreditation system on 1 November 2021 unless they are planning to support a migrant worker immediately after the new Accredited Employer Work Visa application system is introduced.
Employers who are wanting to support migrant workers on the Accredited Employer Work Visas immediately on the introduction date (1 November 2021) will be able to apply for the new Employer Accreditation during late September 2021, before the official 1 November 2021 Accredited Employer Work Visa introduction date. This will allow employers to gain accreditation and be ready for when the new Accredited Employer Work Visa is introduced. Employers have until 31 October 2021 to support migrant workers under the current work visa policies.
Employers that only hire migrant workers on visas with open work visa rights (such as the Partnership Work Visa, Working Holiday Work Visa, or Student Work Visa) will not need to be accredited.
- What The New Proposed Employer Accreditation Will Look Like
- Standard Accreditation: For employers who intend to support between 1 and 5 migrant workers on the new Accredited Employer Work Visa at any one time.
- High-Volume Accreditation: For employers who intend to support 6 or more migrant workers on the new Accredited Employer Work Visa at any one time.
It is important to note that migrant workers on other visa types (such as those on Working Holiday Work Visas) do not count towards the total number of Accredited Employer Work Visa employees.
When initially approved, all Accredited Employers under the new system will receive accreditation for 12 months. At renewal, Standard Accredited Employers and High-Volume Accredited Employers will receive accreditation for a further 24 months. Franchisee employers and employers who are wanting to place their migrant workers on the new Accredited Employer Work Visa with third parties (triangular employers) will only receive accreditation for a further 12 months upon renewal.
- Be a genuine operating business. This means they must be registered with Inland Revenue and hold a New Zealand Business Number. Immigration New Zealand may also request for evidence of the employer’s financial position.
- Not have a recent history of regulatory non-compliance with immigration law and employment law.
- Take steps to minimise the risk of migrant worker exploitation. This is done by completing employment modules, providing migrant workers with advice on their rights, and paying recruitment costs (these costs include advertising costs, agency fees, employer and job check application fees, training and induction costs, health and safety equipment costs, and branded uniform costs).
To gain High-Volume Accreditation, employers must meet the requirements for Standard Accreditation and also demonstrate a commitment to improving pay and employment conditions for all employees over time. What this means is that jobs with High-Volume Accreditation employers must either pay 10% above the minimum wage or be covered by a collective agreement. This means that if a High-Volume Employer submits a Job Check for a job paying less than 10% above the minimum wage, and is not covered by a collective agreement, the Job Check will be declined.
To gain High-Volume Accreditation, employers must meet the requirements for Standard Accreditation and also demonstrate a commitment to improving pay and employment conditions for all employees over time. What this means is that jobs with High-Volume Accreditation employers must either pay 10% above the minimum wage or be covered by a collective agreement. This means that if a High-Volume Employer submits a Job Check for a job paying less than 10% above the minimum wage, and is not covered by a collective agreement, the Job Check will be declined.
There will also be additional requirements for triangular employers. Triangular employers will include labour-hire companies and working arrangements where parent companies place their migrant employees into their subsidiary companies. Triangular employers must meet the requirements for Standard Accreditation (and High-Volume Accreditation if applicable). Triangular employers must also only place migrant workers on Accredited Employer Work Visas with compliant businesses, have good systems in place to monitor employment and safety conditions on site, have a history of contracting labour for the past 12 months, and demonstrate that at least 15% of their workforce being placed with third party businesses are New Zealand Citizens or New Zealand Residents in full-time employment (at least 30 hours each week).
Immigration New Zealand estimates that there will be 22,000 employers that will need standard accreditation and 2,000 employers that will need high-volume accreditation.
Immigration New Zealand has stated that application fees have yet to be determined, but the Employer Check application fee will be covered by the employer.
- Key Practical Considerations For Employers
The upfront cost of recruitment and applying for accreditation will rest with the employer. It would be wise for employers to carry out a proper recruitment process so that the application does not fall over at the Migrant Worker Check. Employers should therefore check to see if the potential migrant worker is suitably qualified and check for potential character issues.
A positive aspect about the new employer-led visa process is that it will be an easier process to deal with employer issues directly. Previously, a lot of employer issues had to be dealt with during a migrant worker’s visa application.
The Job Check
The Migrant Worker Check
The Migrant Worker Check will be the last step in the proposed Accredited Employer Work Visa process and is the actual migrant worker’s visa application. Under the new proposed process, the migrant worker will need to be requested to apply for a visa by their employer. The Migrant Worker Check will check the migrant worker’s identity, if they are suitably qualified (if they have the skills, experience, and/or qualifications), and whether the migrant worker is of good health and character. Further information about the Migrant Worker Check will be available around June or July 2021.
Immigration Application Fees
How We Can Help
This article was written to provide general guidance only. It is correct at as the date of this article and is subject to further updates. Stay Legal is always happy to provide immigration guidance and solutions. If you have any questions about the 2021 Resident Visa, please do not hesitate to contact us. Please call us +64 7 575 2882 or email hello@staylegal.co.nz.
