What are the proposed changes to the employer-sponsored visa of New Zealand?

The New Zealand Govt. has proposed some major changes to the employer-sponsored visa framework. The proposed changes may, most probably, be implemented from August 2019. The Regional Skill Shortage List, however, may be introduced as early as April 2019.

Here are the proposed changes:

1. All Employer-sponsored Visa categories will be replaced by a “gateway framework”. There will be three stages of this framework:

 

a. Employer check

Accreditation would be mandatory for all employers who wish to sponsor Work Visas.

The Govt. has proposed different levels of accreditation, which may include

• Standard accreditation
• Labour hire accreditation
• Premium Accreditation
•  

b. Job check

This is the labour market testing phase. It proposes to introduce:

• Skill Shortage Lists for regional areas of New Zealand
• Industry-specific agreements
• For salaries above $101,046, there would be no labour market testing
• Employers who have premium accreditation would need to increase salaries to sponsor employees for “Work to Residence” Visas. They may need to increase the salary from $55,000 to $78,000.
•  

c.  Individual Check

This is the final stage of a work visa application. Employees will need to go through the mandatory identity, health, and character assessment. Also, the Govt. will check if the education and work experience of the employee is relevant to the job.

This is the final stage of a work visa application. Employees will need to go through the mandatory identity, health, and character assessment. Also, the Govt. will check if the education and work experience of the employee is relevant to the job.

2. The Immediate Skills Shortage List (Essential Skills in Demand) will be replaced by the Regional Skills Shortage List. The skills needs vary by region and the Govt. acknowledges the same.

3. For mid-skilled workers, the minimum hourly rate will increase from $21.25 to $24.29. This may, however, reclassify many workers as low-skilled.

4. The Govt. is seeking feedback on anomalies in the ANZCO. This may not cause a total overhaul of the ANZCO. However, the Govt. will definitely review the most problematic job codes, as per Mondaq.

5. The Govt. is also seeking feedback on the current “stand-down” period for low-skilled workers. It is also reviewing the inclusion of dependents for “low-skilled” workers.

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