December 2023
Immigration
Medium
Summary
Six weeks after New Zealand’s election, a new coalition Government has been formed between the National, Act and New Zealand First (NZ First) parties. There are two coalition agreements, National-Act and National-NZ First, which set out the direction of immigration policy changes.
The Detail
The immigration portfolio has been split between National and NZ First, with Erica Standford (National) as the Minister of Immigration, and Chris Fenk (National) and Casey Castello (NZ First) as the Associate Ministers.
Under the National-Act agreement, the Government has committed to:
● Remove median wage requirements for Skilled Migrant Category visas
● Introduce a five-year, renewable parent category visa, conditional on covering healthcare costs
● Make it easier for family members of visa holders to work in New Zealand
● Increase the cap on Recognised Seasonal Employer Scheme workers
Under the National-NZ First agreement, the Government has committed to:
● Improve the Accredited Employer Work Visa (AEWV) scheme to focus on workforce needs
● Ensure Immigration New Zealand does “proper risk management and verification to ensure migrants are filling genuine workforce needs”
● Investigate the establishment of an “Essential Worker” workforce planning mechanism to better manage long-term labour or skill shortages
● Commit to enforcement and action against those found responsible for the abuse of migrant workers to make sure they face the right consequences
● Address and provide solutions for the Organisation for Economic Co operation and Development (OECD)’s concerns about the lack of focus in New Zealand Immigration policy
Across the two agreements there are also proposed employment changes that may impact immigration, such as:
● Strengthening obligations on work-ready beneficiaries to find work
● Better recognition of overseas medical qualifications and experience
● Committing to moderate increases to the minimum wage each year
● Repealing the Fair Pay Agreement regime
● Expanding 90-day trials to apply to all businesses
● Reviewing Health and Safety legislation
● Simplifying personal grievances; removing eligibility for remedies if the employee is at fault; setting an income threshold above which a personal grievance cannot be pursued.
What this means
While details of these policies and their implementation are still to come, we can anticipate further considerations required for some proposals as follows.
The New Zealand government’s coalition agreements relating to immigration exhibit a mix of continuity and proposed adjustments, but overall, few remarkable shifts. A notable feature is the maintenance of the AEWV scheme, with no immediate plans for review, despite pre-election criticism.
The proposed improvements to the AEWV present a nuanced approach. While the streamlining of processes for skilled workers aligns with meeting employers needs, the increased obligations on Job Seeker beneficiaries might suggest a tightening of scrutiny on certain roles.
The emphasis on risk management and verification will help to ensure migrant workers meet workforce needs, and alongside the commitment for enforcement and actions against migrant workers, will help to reduce exploitation risks. However, additional verification could also lead to delays in visa application processing, impacting businesses with immediate staffing requirements. Increased monitoring and resources for compliance checks and investigations would also be necessary for effective migrant protection policies.
The establishment of an Essential Worker planning mechanism is a strategic move to address long-term skills shortages but might face administrative challenges and take time to become fully effective. How this mechanism will be distinct from the Green List occupation inclusion process is worth monitoring.
Pre-election we noticed few parties address the need for immigration planning that takes account of New Zealand’s demographic and economic trajectory, and successive governments have struggled to formulate a focused immigration policy. It will be interesting to see the level of priority assigned to this commitment over the next three years.
The removal of median wage requirements may support industries like agriculture, tourism, and hospitality but could also raise concerns about wage suppression in these sectors.
The Five-Year Renewable Parent Category Visa is positive news for migrants who have struggled to meet the high-income thresholds in the current policy. The longer-term temporary visa addresses family reunification needs while mitigating potential long-term health service burdens.
Facilitating work for family members may signal a reverse of the policy introduced on 1 May 2023 that imposed conditions on certain partner work visas. This change would make it easier for partners of AEWV holders to seek employment and ensure more equitable work rights for eligible partners across various industries.
In summary, the Coalition agreements reflect the need for the new Government to balance a desire to be more facilitative to employers while simultaneously focussing on risk management and verification. The success of these policies will depend on their effective implementation and adaptability to socio economic changes
How we can help
Our New Zealand immigration team will be keeping a close eye on these policy developments. We will provide submissions and input as the opportunities arise and will continue to share updates. Meanwhile, we expect existing regulations and systems to remain in place for at least 3 to 6 months. Our team is committed to helping business, teams and assignees manage the visa application processes with ease, and is available to assist with:
● Immigration briefings and eligibility assessments
● Preparation of visa applications
● Human Resources team workshops
● Immigration strategy and compliance.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Jaq Chong
Senior Manager, Licensed Immigration Adviser
jaq.chong@vialtopartners.com
Kim Gibbs
Manager, Licensed Immigration Adviser
kim.gibbs@vialtopartners.com
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