Tag Archives: Visa information

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

Work visa wage rate increase

 

Information about the increased wage threshold for NZ visas coming into effect Nov 26 2018

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.

Here is the overview of the rate changes for each visa category affected:

Hourly rates from 26 November 2018

From 26 November 2018, we are making changes to what an applicant in the Skilled Migrant Category must earn.

Threshold Between 15 January 2018 and 25 November 2018 From 26 November 2018
Threshold for skilled employment in an occupation at ANZSCO 1-3 $24.29 per hour or above (or the equivalent annual salary) $25.00 per hour or above (or the equivalent annual salary)
Threshold for skilled employment in an occupation at ANZSCO 4-5, or which is not included in ANZSCO $36.44 per hour or above (or the equivalent annual salary) $37.50 per hour or above (or the equivalent annual salary)
Threshold to earn bonus points $48.58 per hour or above (or the equivalent annual salary) $50.00 per hour or above (or the equivalent annual salary)

 

After 26 November 2018, we are making changes to what an applicant in the Essential Skills work visa category must earn.

Threshold Between 15 January 2018 and 25 November 2018 From 26 November 2018
Threshold for mid-skilled employment in an occupation at ANZSCO 1-3 $20.65 per hour or above (or the equivalent annual salary) $21.25 per hour or above (or the equivalent annual salary)
Threshold for higher skilled employment in any occupation (including those at ANZSCO 4-5) $36.44 per hour or above (or the equivalent annual salary) $37.50 per hour or above (or the equivalent annual salary)

 

FAQs:

What if I am a current Essential Skills work visa holder and my job does not meet the new threshold? What if I’m an employer and one of my staff hold a current visa but their wage does not meet the new threshold?

Ans: Visas that people already hold will not be affected. Changes to the income thresholds will not affect the duration or conditions of visas that have already been granted.

If you apply for, or have applied for, an Essential Skills work visa and your application was received by INZ before 26 November 2018, the old thresholds will be used to assess your application and determine your visa application. Only new applications made on or after 26 November 2018 will be assessed against the new threshold.

This may mean the conditions or visa duration of the next visa could be different. For example, a chef paid $21 an hour would currently be considered mid-skilled, as the occupation is ANZSCO level 2 and the pay is above the existing threshold of $20.65. However, if they applied for a further visa after 26 November, they would be considered low skilled, unless their pay increased to above the new threshold of $21.25.

If I am an employer who has already advertised and prepared to support an Essential Skills work visa, but the person cannot get his application in before 26 November 2018, what happens then?

Ans: If an application is received and accepted after 26 November 2018, the new thresholds will apply, even if, for example, the employment agreement has been signed prior to 26 November 2018.

What happens if I was invited to apply for the Skilled Migrant Category under the old thresholds?

Ans: We will assess your application against the thresholds in place on the date your expression of interest (EOI) was selected from the Pool, if that selection results in an invitation to apply. For example, if your EOI was selected on 21 November and you were invited to apply before 30 November, the old remuneration thresholds will apply, even though you weren’t invited to apply until after the new thresholds were introduced.

If you are concerned about your visa status based on these changes, get in touch with our team here.

Employer Assisted Visas: addressing the unwritten trade-off…

Last month it was announced that changes are being made to the conditions of the Employer Assisted Work Visa. If Kiwi employers allow for it, these changes won’t only be a win for new migrant graduates, protecting them against exploitation, but for Kiwi employers as well.

Upcoming Immigration law changes in November mean holders of Employer Assisted Work Visas will no longer have to name their employer on their visa. Currently, when an employer is noted on a visa it is a condition of the visa that the holder remain in that employment with that employer for the duration of the visa.

This change will allow a new cohort of graduating international students to secure work rights for a three-year period to work for any employer.

This will give those seeking work experience relevant to their qualification a much greater chance in gaining meaningful employment that not only benefits them but also New Zealand. It will hopefully stop the gross under-utilisation of skill and talent we see where young international students who have completed good tertiary-level qualifications end up in jobs well below their skill level, often being paid very poorly.

Having a work visa that permits employment with any employer evens the playing field. These migrants can now fully participate in a free labour market and move to better positions commensurate with their skill level if new opportunities arise. This will prevent many becoming captive to unscrupulous employers who underpay for the skill level of the role being performed as some form of unwritten trade-off for supporting visa applications.

I hope this change will also encourage more New Zealand employers to consider hiring from this group of ambitious young professionals. Employers will hopefully no longer be frightened off by visa expiry dates and the perceived complexity of becoming involved in immigration matters.

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

If you’d like to read an Employer Assisted Work Visa success story, click here.

If you’d like to know other benefits of hiring a migrant, check out our last article.

For other migrant information check out our Migrant Resources.

If you’re thinking about hiring a migrant, read our Employer Checklist

Migrant employers need to get the record straight…

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Migrant employers need to get the record straight…

Employers hiring migrants have been making headlines lately for breaching immigration and employment law. Leading immigration lawyer Aaron Martin and solicitor Eleanor Gregan of Davenports Harbour Law discuss the most common mistakes made by migrant employers and how to avoid them.

From 1 April 2017, employers who incur a penalty for breaching employment standards have faced a stand-down period preventing them from recruiting migrant labour. The stand-down period is for six months, one year, 18 months, or two years, depending on the severity of the breach.

Continue reading Migrant employers need to get the record straight…

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

New Immigration rules will severely impact New Zealand business

Analysis of the new immigration law changes has so far focused on the effects on the economy and the flow of migrants. But there are several other ramifications of the recent law changes that have been overlooked.

*Editors note: Since this article was published, Immigration NZ have amended the visa pay thresholds. Therefore, we have updated the figures in this article to reflect the figures as of the 26th of November 2018.

As the changes restrict pathways to residence under the skilled migrant category, New Zealand employers will find it more difficult to fill positions. Some employers may have roles available that would have been previously been defined as skilled jobs but with the new income thresholds that will no longer be the case.

Continue reading New Immigration rules will severely impact New Zealand business

Immigration law changes ahead

How many migrants will be impacted by the proposed immigration law changes in 2017?

The government has set Immigration New Zealand the task of reducing the number of residence visas issued per year. The target for total migration is now 45,000, with 60% to come from the skilled and business streams. That’s about 27,000 people.

Continue reading Immigration law changes ahead