Upcoming immigration changes for employers

Rachael Mason, Partner at Lane Neave, reviews the approaching changes to immigration law and looks at ways employers can prepare now for the transition.

The government has just released its latest suite of policy changes that will affect employment-related visa categories. The changes are substantial. They will, at least in the first instance, place a significant burden on employers of migrant workers in terms of understanding and preparing for the new policies.

Compulsory accreditation

The new system will require all employers who wish to hire a sponsored migrant worker to apply to Immigration New Zealand for ‘accreditation’. There will be different levels of accreditation, depending on the number of migrant workers an employer hires on an annual basis. To gain accreditation, employers will need to demonstrate that they are compliant with immigration and employment law, that they have good HR policies and practices and have a proven track record of recruiting, training and upskilling New Zealand citizens and residents, amongst other things. For employers who are high-volume users of the system, there will be additional requirements to commit to training and upskilling New Zealanders and improving pay and conditions.

Talent visa being phased out

The Work to Residence (Talent) visa will be phased out over the next two years. The first phase of this process has been the increase in the Talent visa minimum income threshold up to $79,560 per annum ($38.25 per hour), which represents a huge jump from the previous threshold of $55,000 per annum. In 2021, the Talent visa will be disestablished and replaced by the Highly Paid Pathway, which has a minimum income threshold set at 200 per cent of the median wage (currently $104,000 per annum).

Tougher labour market test

In regions where it is considered that there is a higher supply of available New Zealanders and in roles that pay below the median wage (currently set at $25.00 per hour), the labour market test is going to get tougher. Advertisements will be required to state the salary and wage on offer for the role. There will also be an increased expectation for employers to engage with the Ministry of Social Development (MSD). If MSD identifies a suitable candidate, employers will need to provide sound reasons for rejecting them.

Sector agreements

Sector agreements are being introduced for targeted industry sectors where the government believes there is over-reliance on migrant workers for low skilled or low paid roles. These agreements will dictate the requirements to be met by all employers within the sector who wish to employ migrant workers. They will cover issues such as requirements for being an accredited employer, minimum pay rates, training commitments and so on. The sectors that have been identified in this regard include residential care (including aged care), meat processing, dairy, forestry, road and freight transport, tourism and hospitality. Indications are that the sector agreements may also be extended to the construction, horticulture and viticulture sectors.

Visa conditions for workers in low skilled or low paid roles

Migrant workers in low skilled or low paid roles will be able to have their family members accompany them to New Zealand. Partners and spouses will have access to a visitor visa. If they wish to work, they will need to qualify under the new system in their own right. Children will have access to domestic student visas (primary and high school only).

The government has also opted to maintain the 12-month offshore stand-down requirement for workers in low skilled roles. This part of the policy limits workers in low-skilled or low-paid positions to a maximum of three years in New Zealand. Following completion of three years, they are required to leave New Zealand and must remain offshore for 12 months before applying to re-enter. The intention here is to more fairly manage the expectations of migrant workers in low skilled roles, most of whom will never be able to meet the criteria for residence. The aim is to prevent the situation where they build up substantial amounts of time in New Zealand in a temporary capacity, but cannot secure a longterm future here. It is also considered that three years gives sufficient notice

Timeframe

The specific details of these policy changes are still being worked on, and so it may still be some time before the changes are implemented. However, we expect to see the first changes coming in to play in mid2020, with the main components of the new framework set to be phased in during 2021.

Challenges ahead for employers

Employers could review the following areas in anticipation of the changes:

• ensuring that HR systems, policies and processes are current and in good shape

• having a good understanding of migrant workers already in your business, and keeping track of those who are going to be affected by the offshore standdown period and when the standdown will be imposed

• working on building good relationships with relevant unions (they are likely to be asked to comment on accreditation applications)

• considering options that are appropriate for your business to open up employment opportunities for Kiwis (examples include: traineeships, apprenticeships, partnership programmes with MSD, engaging with local schools and training institutions to help offer opportunities to improve employment outcomes)

• reviewing job descriptions and advertising to ensure that these are well drafted

• working on building a good relationship with MSD because it will have an increased role to play in the strengthened labour market test

• ensuring that your systems and processes for immigration compliance and checking and tracking employees’ right to work are robust.

Rachael Mason is qualified in New Zealand, England and Wales and has practised exclusively in the area of immigration law for several years. She works with both multinational corporate clients and smaller local employers across a wide range of industry sectors in managing their global and local migrant workforces and developing and maintaining compliance and legal right to work policies. Rachael is focused on providing highquality technical immigration advice that is both pragmatic and commercial. Rachael regularly presents to HR and other professionals regarding immigration policy changes and issues related to recruiting and maintaining an immigration-compliant workforce.