Work Visa Rules Set to Change

‍

The Accredited Employer Work Visa (AEWV) scheme has been under the spotlight for some time. There have been numerous reported cases of migrant exploitation.

Last year a review of the scheme was ordered by the outgoing Minister of Immigration. The outcome of this review was released this week with recommendations for a number of changes to the AEWV scheme.

Erica Stanford, Minister of Immigration has the job of fixing the problems created from the AEWV scheme being abused by a small number of unscrupulous employers plus soaring net migration. In response to the review the Minister announced she is taking proposals to cabinet to consider in the coming weeks.

New Zealand reopened the border in July 2022. Employers were quick to gear up offshore recruitment to fill labour shortages – both skilled and unskilled workers were in short supply.

What followed next was an explosion of work visa applications from migrant workers keen to fill vacancies. This has led to an estimated net migration gain of 126,000 to the year ending December 2023. The "net migration" measure is the number of people arriving (kiwis, residents and someone holding a visa valid for 12 months or more) and the number of people (kiwis, residents and someone holding a visa valid for 12 months or more) leaving for 12 months or more.

The Minister of Immigration was recently interviewed by TVNZ on their Q&A programme. We invite you to have a listen and read the highlights from this interview including commentary on potential work visa changes here.

While commentators are quick to point out the high net migration gain number (top line) our view is that as a country we need to be equally worried about the high number of people leaving (bottom line). Around 47,000 kiwis left New Zealand last year with 53% heading for Australia. Demographers point out New Zealand faces an aging population, declining fertility rates (less babies), a shrinking future workforce to look after those who are not working (more retirees), and by 2030 a potential population of 6 million. These are difficult issues to work through. Priority number one is to make New Zealand an even better place to live and work to attract highly skilled workers and keep kiwis at home.

Almost 33,000 employers have been granted accreditation. More than 108,000 AEWVs have been issued. Policy change is on the way. Any of your team holding AEWVs should talk to us now about applying for an extension to avoid disappointment.

You can read more about net migration statistics here.