Immigration Update 18th December 2024.
Improvements to the Employer System
The Minister of Immigration has been working hard to improve the employer system so that it functions as opposed to being completely broken as it has been in the past year or two. New changes are coming into effect from March 2025.
Changes to Median Wage Requirements
The median wage requirements that have been strangling employers trying to get good staff will be dropped. Instead, whatever the standard market rate is, will be the applicable wage rate that’s required for work visas. This is a great step forward for the New Zealand economy and for businesses struggling to get staff with working holiday visas, who have not come back since Covid.
Impact on Student Visa Applications
Student visa application grants are hugely down, so a lack of students available to work. With particular areas of the economy picking up quickly, such as tourism, hospitality and construction, we are starting to see pronounced labour market shortages, and these steps will help to address some of the challenges employers are facing.
Extensions for Lower Skilled Work Visas
For work visa holders who are on a two-year lower skilled work visa, they will be able to get a one-year extension, and the employer doesn’t have to pay any more than the market rate. For employers looking to hire staff, if you simply show that you can’t find local people for the job, which is often the case at the moment, even for lower skilled work, you can advertise the job at the market rate from March 2025.
Support for Families
For families, if you are earning $25.50 approximately per hour, 80% of the current median wage, then you are able to support your children and your partner for an open work visa. As long as you’re in a skill level 1 to 3 job, or you’ve previously supported family members on visas before. Families will also need to show that the principal applicant for the work visa is earning $55,000 approximately per year.
New Lower Skilled Accredited Employer Work Visa
In some cases, from March 2025, new lower skilled accredited employer work visa applicants will be granted a three-year work visa even if they’re paid below $29.66 an hour. Please note carefully that anyone who’s currently on a work visa that requires $29.66 an hour must continue to be paid at that rate. It’s not clear to us yet whether employers and employees can apply for a new work visa at a lower wage rate. We think Immigration New Zealand may look at such applications very carefully and unfavourably.
Upcoming Policy Details
Full policy details of the changes are yet to be released and are expected in March. However, it’s really good to see some commonsense approaches coming into immigration decision making in policy.
Interim Work Visa Work Rights
With these changes, there are two other small but significant changes. If you’re applying from one work visa to another work visa, you’ll get interim work visa work rights. At the moment, these work rights are very limited, but we understand that those criteria will be expanded, and will also include students changing to work visas.
Fast Track System for Trusted Employers
Additionally, the government is looking at bringing in a fast track system for trusted employers who maintain good compliance with employment and immigration practice and good financials. This fast track system will accelerate decision making on accredited employer renewals, job check applications, and work visas for those trusted employers. We think this is an excellent approach to risk management in the immigration system.
To find out more, please contact us, follow our Facebook page or check our YouTube videos. We’re also going to be away for a much-needed break until January 13th and look forward to answering any email enquiries when we’re back to work. Have a great Christmas and New Year!
