What just happened to the work visa scheme?

Employers are struggling to navigate the unanticipated tightening of the Accredited Employer Work Visa Scheme (AEWV) as Immigration New Zealand’s (INZ’s) doors close for lowskilled labour. Vienna Tse, Associate from Cavell Leitch, outlines the changes.

Employers and migrant workers in New Zealand were surprised by an unexpected announcement on 7 April 2024 regarding immediate changes to the AEWV. These changes, stemming from an assurance review commissioned by the Public Service Commission earlier in February 2024, have left many employers struggling to comprehend them, significantly complicating the process of recruiting overseas staff to fill critical positions.

The Assurance Review highlighted that the scheme was not meeting its objectives due to INZ’s inadequate assessment of the risks and impacts associated with expediting processing times. This led to an increased risk of misuse of the immigration system, prompting the need for changes.

ATTRACTING AND RETAINING HIGHLY SKILLED MIGRANTS

Amidst a record-breaking annual net migration of 133,800 people in January 2024 year, and more than 51,338 foreigners entering New Zealand on work visas during the first quarter of 2024, INZ has tightened up visa rules for lowskilled workers. This move is aimed at ensuring New Zealand is attracting the skills needed to address genuine skill and labour shortages while maintaining a sustainable level of net migration. Significant policy changes include the following.

• Introduction of Minimum Skills Threshold: Most AEWV applicants must demonstrate a minimum of three years of relevant work experience or a relevant qualification at level 4 or higher unless they meet the Green List requirements for that occupation.

• Implementation of English Language Requirements for Low-Skilled Roles: Migrants applying for lowskilled positions (classified as ANZSCO skill level 4 and level 5 occupations) are now mandated to meet the minimum standard of English, such as an overall score of 4 or more on the IELTS or an equivalent assessment.

• Additional Obligations on Employers for Low-Skilled Roles: Employers seeking to fill low-skilled level 4 and level 5 job positions are required to advertise these positions for a minimum of 21 days. Additionally, they must list the job with Work and Income (WINZ) for 21 days and receive confirmation from WINZ that no suitable and available New Zealand citizens or resident visa holders are available for the job.

• Reduction in Visa Duration and Maximum Continuous Stay for Low-Skilled Roles: Starting from 7 April 2024, for jobs classified as low-skilled ANZSCO level 4 and level 5, with pay rates at or above the required AEWV wage rate, the maximum visa duration for an AEWV will be reduced to two years. However, the visa holder can apply for an additional year with a newly approved job check.

The total time they can stay in New Zealand is also reduced to three years. After that, they will be subjected to a 12-month stand-down period.

Most importantly, the above policies have retroactive effect. Anyone who applied for their AEWV before 21 June 2023 and who is in ANZSCO level 4 and level 5 jobs paying at or above the required AEWV wages and currently holds a three-year visa will no longer be able to access the maximum time of five years.

However, those who applied for an AEWV between 21 June 2023 and 6 April 2024 will continue to be eligible for a five-year AEWV.

The policies introduced were not all new; instead, they represented a return to prepandemic settings, specifically reverting to the Essential Skills regime. Additionally, 11 roles previously announced to be added to the Greenlist will no longer be added. Furthermore, the Work to Residence pathway for bus and truck drivers was closed to new applicants from 7 April 2024.

Strengthening Integrity And Reducing Migrant Exploitation

In line with recommendations from the Assurance Review published by the Public Service Commission, the AEWV scheme has made changes to enhance its integrity and prevent the exploitation of migrants. The new policies include the following.

• Expanded Employer Obligations: There are more requirements and obligations at the accreditation and job check stages and during the accreditation period. These include the following.• Employers must take reasonable steps to ensure migrants are suitably skilled and check whether the migrants have the skills they have identified as necessary for the job, as well as the new minimum skill requirement.• Employers are required to provide AEWV holders with at least 30 hours of work each week. Failure to do so may cause their accreditation to be revoked.• Employers must also inform INZ within 10 working days if their migrant workers leave their jobs before their visa expires.

• Grounds for Accreditation Suspension: Employers being actively investigated for any breach of accreditation may have their accreditation suspended.

• Franchisee Accreditation will be disestablished on 16 June 2024. Franchisee employers will be able to apply for standard, high-volume or triangular employment accreditation, depending on their circumstances.

Conclusion

While the revised AEWV scheme aligns with the Government’s objectives of supporting a more sustainable level of net migration and safeguarding against migrant exploitation, these sudden changes pose unforeseen challenges for employers trying to bring in staff from overseas. We recognise that these changes will significantly alter the immigration landscape. Therefore, it would be helpful if INZ could provide all employers and migrant workers with a reasonable amount of time to understand and adjust to the changes before they take effect.

Vienna Tse is an Associate in the Cavell Leitch immigration team. She has a sound working knowledge of immigration law, regulations and policies. She has an extensive amount of experience in the Accredited Employer Work Visa scheme and excels at understanding her client’s needs and developing practical immigration strategies and solutions. In particular, Vienna understands that immigration matters can be confusing and stressful; therefore, she listens to people’s needs, simplifies the process and delivers pragmatic advice.