Immigration New Zealand have released a raft of changes, including significant changes to the Skilled Migrant Category (SMC). We have summarised key information in this alert.

Accredited Employer Work Visa Changes

Currently, Accredited Employer Work Visas (AEWV) are granted with a maximum validity of 3 years. Holders of AEWVs do not have a time limit on how long they can spend in New Zealand on an AEWV if they are paid above the median wage.

From November 2023 and after the new changes are implemented, AEWVs will be granted with a maximum validity of 5 years. AEWV holders will need to spend 12 months offshore if they do not have a clear pathway to securing residence in New Zealand after they have spent 5 years in New Zealand (this will apply even if an AEWV holder is paid above median wage).

For example, if you are a Butcher or specialist technician holding a 3-year AEWV granted on 1 August 2022 and you do not have a clear pathway to gaining a resident visa in New Zealand in 2025, your next AEWV will only be granted for 2 years. You will need to depart New Zealand for 12 months after holding an AEWV continuously for 5 years.

Skilled Migrant Category

Currently, the Skilled Migrant Category (SMC) does not require employers to hold accreditation status, does not generate interim visas and uses a 180-point system. The last selection from this iteration of the policy will be on 15 August 2023.

After the new iteration of the SMC policy is introduced on 9 October 2023, employers will need to hold accreditation status to support a migrant worker with an SMC application. Workers will need to meet requirements that use a 6-point system and will be provided with interim visas that will allow them to remain in New Zealand until after their SMC application has been processed.

We have summarised key information associated with the proposed 6-point system below:

  • Migrant workers in skilled employment that meet the following requirements will be eligible to be invited to apply for residence after the new policy is operational and after submitting an Expression of Interest (EOI):
    • Hold a qualification that is comparable to a New Zealand Qualification Framework PhD or Doctorate qualification.
    • Hold New Zealand registration in an occupation that requires at least six years of training (listed in the table here as providing 6points).
    • Hold an offer of employment or are in employment that pays at least 3x the median wage (currently $88.98 per hour or $184,912 per annum based on a 40-hour work week).
  • Migrant workers in skilled employment that meet the following requirements will be eligible to be invited to apply for residence after they have worked in a skilled role for 1 year and after submitting an EOI:
    • Hold a qualification that is comparable to a New Zealand Qualification Framework Master's qualification.
    • Hold New Zealand registration in an occupation that requires at least 5 years of training (listed in the table here as providing five points).
  • Migrant workers in skilled employment that meet the following requirements will be eligible to be invited to apply for residence after they have worked in a skilled role for 2 years and after submitting an EOI:
    • Hold a qualification that is comparable to a New Zealand Qualification Framework Honours Degree or Post-graduate Diploma qualification.
    • Hold New Zealand registration in an occupation that requires at least four years of training (listed in the table here as providing 4 points).
    • Hold an offer of employment that pays at least 2x median wage (currently $59.32 per hour or $123,385.60 per annum based on a 40-hour work week) and have worked in skilled employment that pays 2x median income over those 2 years.
  • Migrant workers in skilled employment that meet the following requirements will be eligible to be invited to apply for residence after they have worked in a skilled role for 3 years and after submitting an EOI:
    • Hold a qualification that is comparable to a New Zealand Qualification Framework Bachelor's Degree or Post-graduate Certificate qualification.
    • Hold New Zealand registration in an occupation that requires at least two years of training (listed in the table here as providing 2 points).
    • Hold an offer of employment that pays at least 1.5x median wage (currently $44.49 per hour or $92,539.20 per annum based on a 40-hour work week) and have worked in skilled employment that pays at least 1.5 median wage over those 3 years.

Our Thoughts

Our initial thoughts on the new policy is that it will create hurdles and hooks for employers and migrants that do not meet the requirements for applying for residence. Obtaining residence in New Zealand is a key consideration for most migrant workers looking to settle in New Zealand. If applying for a resident visa is not navigated around carefully from the outset of a recruitment campaign or for existing workers (now), employers may not be able to support migrant workers for a further AEWV after a worker has held an AEWV for five years.

In our opinion, it is likely that further changes will be on the horizon. Employers in New Zealand rely on migrant workers for a wide range of roles that fall outside of the new policy, ranging from Chefs, operators of specialist machinery, and specialist technicians to other specialist roles. Workers in these roles may not: hold a bachelor's qualification, have a pathway to gain occupational registration or have another residence pathway available. These skilled migrants may not have had a realistic pathway to remain in New Zealand past five years. Unless there are further policy changes, this could leave many skilled migrant workers and their employers in a difficult position.

We recommend seeking advice to carefully plan the ability of your workforce to remain in New Zealand.

All information in this update is current as at 22 June 2023.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.