Immigration New Zealand Changes - What Does It Mean For You?

Immigration New Zealand has implemented several changes to the Accredited Employer Work Visa (AEWV) program, aiming to address labor shortages and streamline immigration processes.

These modifications present both advantages and disadvantages for employers and prospective migrants. We discuss below some of these and why it is important for you as a business owner to consider a 'strategy' for your next migrant hire in New Zealand:

Pros:

1. Removal of Median Wage Requirement: Employers are no longer mandated to pay the median wage to migrant workers. Instead, they must ensure wages are comparable to those of New Zealand workers in similar roles. This flexibility allows businesses to offer market-aligned salaries, making it more feasible to fill both skilled and unskilled positions.

   
   

2. Reduced Work Experience Requirement: The required work experience for AEWV applicants has been decreased from three years to two years. This change broadens the talent pool, enabling younger or mid-career professionals to qualify for roles in New Zealand.

   
   
   
   

3. Simplified Employer Engagement with the Ministry of Social Development (MSD): Employers hiring for lower-skilled roles (ANZSCO Skill Level 4 and 5) can now declare their engagement with Work and Income without submitting detailed documentation. This simplification reduces administrative burdens and expedites the hiring process.

   
   
   
   

4. Extended Visa Duration for Lower-Skilled Workers: The maximum visa duration for AEWV holders in lower-skilled occupations has been increased to three years, reducing the frequency of renewals and providing greater stability for both employers and employees.

   
   
   
   

Cons:

1. Higher Income Thresholds for Sponsoring Dependents: Migrants wishing to sponsor family members now face increased income requirements. This change could pose challenges for workers in lower-paying industries who aim to bring their families to New Zealand.

   
   
   
   

2. Increased Employer Responsibilities: The AEWV shifts more responsibility onto employers, requiring them to ensure that migrant workers are suitably skilled and meet specific requirements before issuing job tokens. This added responsibility may be particularly challenging for small and medium-sized enterprises (SMEs) without dedicated human resources departments.

   
   
   
   

3. Potential for Wage Disparities: While the removal of the median wage requirement offers flexibility, it may lead to wage disparities between migrant and local workers, potentially causing workplace tensions and perceptions of unfairness. It also adds another layer of complexity for those migrant workers looking to apply for residence under various schemes because the bargaining power of wages has moved in favor of the accredited employer, who looking to keep more profit margin, is unlikely to offer a wage over $32 per hour when the market now dictates a lower wage can be offered to a migrant worker. Thus making it difficult to achieve the median wage requirement for 'residence' class visas. Many skilled migrants will find themselves in a predicament and possibly without a residence pathway because of this.

   
   
   
   

4. Compliance and Monitoring Challenges: Employers must now notify Immigration New Zealand if a migrant worker leaves their employment more than a month before their visa expires. Failure to comply can result in the revocation or suspension of their accreditation, adding to the administrative responsibilities of employers.

   immigration.govt.nz

   
   

In summary, the recent AEWV changes offer greater flexibility and opportunities for both employers and migrant workers. However, they also introduce new challenges, particularly concerning employer obligations and the potential impact on migrant workers' families and their changes to apply for residence visas unless Immigration New Zealand has on its sights to reduce or remove the median wage requirements for residence class visas (this is highly unlikely).

We invite you to write us at admin@cmgadvisory.co.nz to discuss your accredited employer requirements and strategy around hiring migrant workers.