Tag Archives: immigration news

Post-study visa changes: November updates

News and information on NZ post-study visas
New Zealand Post-study visa changes came into full effect November 26th 2018. We cover the changes and the implications for migrants and Kiwi employers.

Changes to post-study work visas came into effect yesterday. The most significant change, as discussed in our previous article “Employer Assisted Visas: addressing the unwritten trade off” is the removal of the employer’s company name on the visa. Open visas will take its place, a positive not only for migrants but for local employers as well.

The new visa categories are:

  • A three-year post-study open work visa for those who have completed a bachelor’s degree or higher qualification
  • A one-year post-study open work visa for those studying New Zealand Qualifications Framework level 4-6 and non-degree level 7 qualifications. An additional year is available for graduate diploma students who are working towards registration with a professional or trade body, and
  • A “time-bound” two-year post-study open work visa for students studying level 4-6 and non-degree level 7 qualifications outside Auckland (study must be completed before 2021).

To make sure current tertiary students and post-study work visa holders aren’t disadvantaged, Immigration New Zealand has also introduced the following.

  • Students who held a student visa or were in the process of applying for a student visa to study towards an eligible qualification as at 8 August 2018 can apply for a three-year post-study open work visa on completion of their qualification.
  • Students in this category who have previously had a one-year open post-study work visa can apply for a two-year post-study open work visa on completion of their qualification.
  • Those who currently hold a one-year post-study work visa can apply for a further two-year open post-study work visa.
  • Those who currently hold an Employer Assisted Work Visa can apply to vary the conditions of their visa and remove the occupation, employer, and location restrictions.

These changes will allow migrant students and graduates greater freedom to change jobs and compete on an even playing-field with local candidates. Much of the exploitation of migrants that we have seen in the news is due to the visa restrictions that tied migrants to one eligible employer in order to work and live in the country. Now that migrant workers are not dependent on one employer they are free to find a better role if work conditions and pay aren’t adequate. They will also have more freedom to move to roles more suited to their desired career.

The visa changes mean that future students will need to undertake courses of a much higher calibre to secure work rights after study. In accordance, the educational threshold for entry and the English standard of those coming to New Zealand will be higher. This is a clear benefit for employers as it will make for a greater selection of candidates with higher skill sets. The changes also mean employers do not need to be so involved in an employee’s post-study work visa process, which saves employers time and inconvenience.

All change comes with some uncertainty, but overall these changes will be of huge benefit to both migrants and local employers. Hopefully this will pave the way for other visa categories to be reviewed.

For a full list of changes, have a look at the Immigration New Zealand resource here.

If you want to talk about your post-study visa options, or have any other immigration law concerns, contact the NZIL office here.

Increase in work visa thresholds will only add to skilled labour crisis

New Zealand Work Visa

The skilled-labour crisis is about to get worse, thanks to increases in minimum wage rates for skilled migrant workers.

The Government-imposed increase in wage and salary thresholds will come into effect from November 26, for both the Essential Skills Work Visa and the Skilled Migrant Residence Visa.

This increase has major implications for both migrants and employers. The inflation is based on new calculations of the “average” wage rate in relation to an increase in the cost of living, demonstrating the insanity of pay rate being a proxy for skill.

In a free labour market, supply and demand are supposed to determine wage/salary rates. But in the labour market for migrant workers, the Government is directly influencing wages under the guise of pay being a proxy for skill level.

The metric is artificial and arbitrary. It’s designed to make things easier for bureaucrats to manage but has become an overly complex system with unintended and major consequences for migrant employees and employers alike.

Implications for employers:

The new thresholds will increase pressure on staffing costs for employers in the healthcare, trade, and hospitality sectors if they wish to keep migrants whose wage/salary sits below these thresholds.

Recently some healthcare workers managed to get a pay increase to $24.65 – partly based on the pay parity case brought by care worker Kristine Bartlett. This put some migrants in the healthcare sector within reach of residence.

The threshold increases mean this residence is no longer a realistic reality. This could mean a loss of valuable human resources for employers as these workers either give up, move into other sectors, or leave the country, tired of being stuck on what seems like an endless round of work visas with no end in sight.

These issues will also impact employers in the hospitality sector. Pathways to residence for occupations in this sector that are more junior will now prove more difficult. A survey of wage rates nationally showed they varied considerably across the regions, but on average a senior chef de partie earned about $45,000, well below the cut-off level. If these valuable employees have no potential to attain residence, we will lose them.

The new thresholds will also introduce difficult pay parity issues for employers. The new wage rates that migrants require as dictated by Government policy are out of kilter with market increases across the board. Employers will not be able to simply pay migrants the extra required without also raising the wages of their local workers. How could they justify this to the local staff? Any pay disparity will engender a level of upward wage pressure for everyone. Many employers are not in a position to be able to raise wages across the board.

Implications for migrants: 

Work Visa

Immigration New Zealand uses pay rates as part of the process of determining the skill level of a job. This determines the length of visa allocated and has flow-on impact for a migrant’s ability to bring family into New Zealand under this category.

Under the new rules:

  • For skill level 1-3 occupations you will need a pay rate of $21.25 to get a three-year work visa (up from $20.65)

  • For skill level 4 and 5 occupations you will need an hourly rate of $37.50 to secure a three-year visa (up from $36.44).

For example, a chef paid $21 an hour would currently be considered mid-skilled, and get a three-year visa. If the same person applies after 26 November, they will be considered low-skilled, and only get a one-year visa.

Residence

For residence purposes, the pay rates you need to have a job classified as skilled will increase from 26 November. If you are not being paid at least $25 for a ANZSCO skill level 1-3 role, the job won’t be considered skilled for visa purposes. The skilled remuneration threshold for ANZSCO skill level 4 and 5 occupations has also increased to $37.50 per hour. So, the minimum required salary threshold will be $52,000.

What will this mean in practice? Under the current rules, a person in a skill level 3 job (which includes many trades) who is paid, say, $24.50 per hour is regarded as in skilled employment and has a chance at residence. After 26 November, they will no longer be regarded as being in skilled employment and will lose that opportunity.

In addition, under the new rules, to get bonus points for an occupation with “high remuneration” you will need an hourly rate of $50.

 Macro considerations

How do you explain to a person that when they go to bed they are regarded as in skilled employment and eligible for residence, but when they wake up the job is not regarded as skilled employment?

How do you explain to somebody that when they go to bed they are eligible for a three-year work visa because their job is regarded as mid-skilled, but when they wake up they are only eligible for a one-year work visa because now their job is regarded as low-skilled?

Furthermore, how do you explain to employers that their staff will need a pay rise if you want to keep them?

In a time where employers are crying out for skilled migrants, these changes are an arbitrary and illogical hurdle against solving our skilled worker shortage. The changes also clearly demonstrate the lack of deep-thinking around implications of arbitrary measures of “scoring eligibility” used by Immigration New Zealand.

To see the full schedule of changes, click here. 

If you’re wondering how this will affect your current Employer Assisted Work Visa, contact NZIL

Kiwibuild visa replaced with new Kiwibuild skills shortage list

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The Government has scrapped its KiwiBuild Visa plan in favour of wider proposed changes to immigration settings to fix a 30,000 worker gap in construction.

The government-is trying to make the process easier for employers to recruit the staff they need to work in construction and fast track the immigration process for workers who meet the right criteria.

The proposed changes include a KiwiBuild Skills Shortages list which would set up a simplified process for employers to quickly hire overseas workers in critical roles without Immigration NZ needing to conduct a market test each time.

Continue reading Kiwibuild visa replaced with new Kiwibuild skills shortage list

Stop the cynical political point scoring- its time to address the real issues…

Principle lawyer at NZIL  Aaron Martin, weighs in on the recent comments in the media from Michael Woodhouse about a suggested amnesty for illegal construction workers.

The criticism by National Party spokesman for Immigration, Michael Woodhouse, of the current Minister for possibly looking at an amnesty is cynical political points scoring of the worst order.

Continue reading Stop the cynical political point scoring- its time to address the real issues…

Storm in a teacup

Workers in demand have always been able to be recruited offshore.

Property developers Fu Wah have been in the news lately for moves to recruit construction workers from China. The Beijing-based construction company is applying for short-term work visas for 200 workers to complete the fit-out of new luxury Auckland hotel Park Hyatt by March next year.

Continue reading Storm in a teacup

Major bureaucratic flaws in New Zealand’s immigration system

Leading Auckland immigration lawyer Aaron Martin knows from extensive experience with clients exactly where the frustrations and incompetencies of the current process lie. He has some suggestions for the new Government about where its focus should be when it comes to immigration.

The Labour Party election campaign focused on positive messages. So I eagerly looked forward to an equally positive message from the new Minister of Immigration. But in an article on the Newsroom website on 1 December the Minister started on a negative: the immigration system was broken and required more money to catch those who try to shaft it.

Continue reading Major bureaucratic flaws in New Zealand’s immigration system

Time to ask for a pay rise…

If you want to be granted a Skilled Migrant Category Residence visa in 2018 you should check your eligibility against the new Ministry of Business Innovation and Employment SMC criteria.

On the 26th of November, the MBIE updated the SMC visa and changed the remuneration (payment) threshold that will meet the eligible criteria for migrants.

Continue reading Time to ask for a pay rise…

A letter to the New Zealand Government

To the Right Hon. Jacinda Adern and the Hon. Iain Lees-Galloway,

Welcome to Government. I am looking forward to the next 100 days. I am hoping some of rank injustice created by your predecessors will be swept away.

You said your Government will be empathetic. I am hoping you’ll have some empathy for those New Zealanders whose parents have been left in limbo since the National Government’s cancellation of the Parent Category.

Continue reading A letter to the New Zealand Government

Building boom without a skilled labour force?

With Labour looking to create 100,000 new houses for first home buyers within the next decade, who is going to build these homes? With the building industry already facing a labour shortage and currently filling the skilled positions with overseas workers, who will be left to fill the demand when immigration numbers are cut?

This morning reporter Tom Furley from Radio New Zealand discussed the potentially compromising position the New Zealand Government have put themselves in with their plan to cut immigration numbers.

Continue reading Building boom without a skilled labour force?

Immigration net migration numbers will be cut to 30K a year

New Zealand’s new prime minister Jacinda Ardern has vowed to honour Labour’s election promise to cut net migration to 20,000 to 30,000 a year.

She also predicted that New Zealand will be facing an economic slowdown which she plans to prepare for:

Continue reading Immigration net migration numbers will be cut to 30K a year