Advice To Employers On Assisting Employees To Gain Residency

Opinion piece, Aaron Martin, principal lawyer New Zealand Immigration Law.

New Zealand's accredited employer work visa (AEWV) will undergo significant changes, which in combination with the new 6 Point Residence Visa system, will have impacts that are far-reaching for both employers and migrants. Principal lawyer at NZIL, Aaron Martin, provides a detailed analysis of these changes and discusses what they mean for the landscape of New Zealand's labour market.

The Government's announced amendments to the AEWV and the new 6 Point Resident Visa system have introduced a complex layer of policy that affects both migrant workers and accredited employers.

The New Five-Year Visa Duration

Starting from November, a five-year accredited employer work visa duration will be implemented. While this extension may seem beneficial at first glance, it carries potential stumbling blocks. If a worker does not secure a clear pathway to residency towards the end of the five-year period, they must leave New Zealand and wait for a 12-month duration before reapplying for another work visa.

For employers, this means they must be informed and transparent about residency pathways when hiring and must plan how to manage a scenario where a worker only has five years in New Zealand before having to leave for a year.

Points System Complexity

The newly touted simplified points schedule might appear more straightforward, but the reality is anything but simple. With qualifications, income, and professional registration being the three skill categories for acquiring points, the system demands careful navigation.

For example, a bachelor's degree yields 3 points, a PhD grants 6, and high income at 1.5 times the median wage earns 3. Yet, combining points from different categories is not permitted.

The remaining points can be made up by relevant New Zealand work experience. However, candidates and employers, when looking towards a pathway to residency, must be aware of what the criteria for relevant work experience are to make sure that they are eligible before accepting a position. (Read our explainer for how the new SMC points system works here)

Requirements for skilled work experience

The skilled work experience must be in a full-time job, with a minimum of 30 hours a week AND meet the wage threshold depending on the Australian and New Zealand Standard Classification of Occupations (ANZSCO) level of the job.

For example:

For skilled level 1-3 roles you need to be paid $29.66

For skill level 4 and 5 roles you need to be paid $44.49

So, if you are to employ an overseas worker, you should also be considering not only whether they meet your job description and eligibility for the work visa, but whether their work experience in your company would qualify them for residency.

To ensure this would happen you would have to make sure their job role matches the ANZCSO description and pay.

But if an employee needs to select income as his or her skill criteria under the 6 Point Resident Visa system, and then acquire further work experience in New Zealand to get residence, they may need to meet a different salary or wage threshold for that two-year period.

Challenges and Considerations for Employers

Navigating recent changes in employment regulations requires employers to think beyond merely securing a five-year work visa for an employee. Key areas to consider include:

Residency Requirements: Understand an employee's pathway to residency, including any income criteria and New Zealand work experience needed.

Occupational Registration: Implement a programme for roles that require specific registration, licence, or certification, aiding employees in meeting residence criteria.

During recruitment, focus on:

Position Description: Select the appropriate ANZSCO description for the desired position.

Qualifications: Identify relevant qualifications that support a pathway to residency.

Wage Assessment: Evaluate the suitable wage for the role.

After selecting the ideal candidate, ascertain:

· Their pathway to residency, considering occupation registration (if available), required qualifications, and income level.

· The New Zealand work experience needed, including specific requirements for recognition.

· Future Planning: If residency is unlikely from the position, structure a recruitment process to identify potential replacements at the five-year mark.

Conclusion

While the Government aims to simplify the immigration system, the latest AEWV changes add layers of complexity and require careful navigation for both employers and employees.

Employers must now think more strategically about their recruitment processes, considering not just immediate work visa requirements but also long-term residency pathways and what the business will do when that worker needs to leave New Zealand

Employers who do not appropriately forward plan and get strategic advice in this area will be in for some nasty surprises when they get told their staff member has to leave and they have to recruit somebody else to the position. Forward planning is going to be vital from November onwards when you are recruiting international talent into your business.

Further information:

Aaron Martin is one of New Zealand’s most highly regarded immigration law practitioners. He has extensive experience in assisting individuals, SMEs, and large multinational corporations.

With over 25 years in general legal practice and a thorough working knowledge of relevant tax law and commercial law, Aaron is skilled in assisting investor-category applicants and migrants planning to establish a business in New Zealand.

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