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Today, December 17, 2024, the New Zealand Government unveiled significant reforms to the Accredited Employer Work Visa (AEWV) aimed at streamlining the immigration process for employers and workers alike. These changes will help New Zealand address skills shortages while ensuring fair wages and improved working conditions for migrant workers.
These changes will swing the pendulum back some way toward earlier settings after a short sharp shock correction in April of this year.
The reforms will be rolled out in stages throughout 2025, beginning in January. Here’s a breakdown of the key changes that employers and potential migrants should be aware of:
1. Removal of the Median Wage Requirement (a big one!)
One of the most notable changes is the removal of the median wage threshold for all AEWV roles. Previously, employers were required to offer a salary at or above the median wage to hire migrant workers. Now, while employers still need to advertise and pay the market rate for the job and location, the wage threshold will no longer be a barrier for many employers.
The onus will be on the employer to prove that market rate is met and sources such as Careers.govt.nz or its successor, Tahatū Career Navigator website once fully online in 2025)
Importantly, this change does not affect existing employment agreements, and AEWV workers will still need to meet the current wage thresholds for residence applications.
2. New Earning Threshold for Family Inclusion
To bring their children to New Zealand, AEWV migrants will now need to earn a minimum of NZ$55,844 per year. This threshold has not been updated since 2019 and aims to ensure that families can support themselves while living in New Zealand. Migrants must also meet other eligibility criteria to support dependents. This threshold, while a significant leap from the current one remains below the true cost of living and migrants with multiple dependents ought properly to be fully informed as to their likely remuneration levels and how that fits with the true cost of living. Here at Into NZ we make that part of our mission to inform workers coming to these shores - it is part of what we call being "immigration ready".
3. Reduced Experience Requirement for Migrants
The experience requirement for AEWV applicants will be reduced from 3 years to 2 years. This change is designed to make it easier for skilled workers to migrate while addressing the pressing need for talent across various industries. Employers will continue to be able to recruit skilled workers who are adequately experienced but not necessarily seasoned professionals.
Please note: this is only for minimum skills purposes. If an employer stipulates a higher number of years of experience is required for a particular role, then the migrant worker will need to prove that.
4. New Seasonal Worker Pathways
In a bid to address the needs of industries reliant on seasonal labor, such as agriculture and horticulture, two new seasonal worker pathways will be introduced in November 2025:
A 3-year multi-entry visa for experienced seasonal workers.
A 7-month single-entry visa for lesser-skilled seasonal workers.
These pathways will offer more flexibility and better opportunities for experienced seasonal workers to return to New Zealand for extended periods. The current temporary seasonal pathways will remain in place until these new pathways are introduced.
5. Increased Visa Duration for Lower-Skilled Workers
For workers in ANZSCO Level 4 or 5 jobs, the AEWV duration will increase from 2 years (with the option of 1 additional year) to 3 years. This change ensures that workers in these roles can stay in New Zealand for longer periods. Current 2-year visa holders can also apply for an additional year, provided they meet the necessary requirements.
6. Amendments to Work and Income Engagement Requirements
The current requirement for employers to engage with the Work and Income will be amended to be declaration based. Employers must declare that they have, in good faith, advertised ANZSCO skill level 4 or 5 jobs with Work and Income and interviewed candidates who could have been suitable for the job. This can be done alongside the recruitment that employers will already be undertaking in the domestic labour market. There will also no longer be a set 21-day timeframe.
7. Greater Work Rights for Interim Visa Holders
From April 2025, workers on interim visas will gain greater work rights. This change is aimed at AEWV applicants transitioning from other work visa types or student visas that permit part-time work during term time. This extension helps workers maintain employment while their AEWV applications are being processed, reducing uncertainty and ensuring smoother transitions.
8. Removal of Employment New Zealand Online Modules (!!!)
The online module requirement for employers and Recognised Seasonal Employers (RSEs) will be removed on January 27, 2025. In place of mandatory modules, employers and workers will be directed to resources outlining employment rights and obligations via Employment New Zealand or Immigration New Zealand websites. This change will be very welcome to employers who have found this requirement to be overly prescriptive and bureaucratic.
9. Reduction in Domestic Workforce Threshold for Construction Roles
The domestic workforce threshold for certain construction roles will be lowered from 35% to 15%. This will help employers in the construction sector hire skilled workers from abroad more easily, addressing labor shortages in this critical industry. This no doubt signals a future where construction labour hire may ramp up for projects in the pipeline.
Timeline for Implementation
These changes will be introduced gradually over 2025:
January 2025: Removal of online modules and the introduction of the new earning threshold for family inclusion.
April 2025: Extended interim work rights for visa applicants.
July 2025: Streamlining of the AEWV Job Check process for low-risk employers.
November 2025: Introduction of new seasonal worker pathways.
What Does This Mean for Employers and Migrants?
For employers, these changes provide a more flexible and streamlined process for hiring skilled and seasonal workers. Removing the wage threshold and reducing experience requirements are significant steps in making the AEWV process more accessible, especially in industries facing labour shortages.
For migrant workers, these reforms create opportunities for longer stays in New Zealand, easier family reunification, and a smoother transition between visa types. By addressing feedback from both employers and migrants, the New Zealand Government is ensuring that its immigration system is responsive to the evolving needs of the labor market.
Final Thoughts
The Accredited Employer Work Visa, now into its 3rd year in operation, has had a chequered history.
Advisers working at the coalface oft talk about whether we really needed to move to this new system from the old Essential Skills system. The key desire of the government of the day was to have an employer-led system that provided greater certainty for migrant workers and protection against exploitation. In the initial stages, the rollout created the conditions for precisely the opposite to happen. I think just about every Kiwi who reads a newspaper would be quite fed up with all the stories of migrant exploitation. We still see the tail of all of that, as new stories emerge. However, it really does now feel as though the tide was successfully stemmed by the April 2024 changes that were made. Having successfully done that, it's now time to let out the sail a tad to keep the wheels turning. These changes are a significant step towards making New Zealand’s immigration system more flexible, efficient, and responsive to the country’s skills needs. Employers will have a more straightforward process for hiring the talent they need, while workers will benefit from clearer pathways and greater job security. New Zealand jobs will still be protected by the labour market testing requirements in place.
Stay tuned for further updates on the implementation of these reforms in early 2025!
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