Introduction: Navigating the Immigration Landscape

For businesses in New Zealand looking to fill labour shortages, hiring skilled workers from overseas is often necessary because of skill shortages or the limited availability of workers in more remote towns around the country. This process is governed by a strict immigration policy designed to protect both migrant workers and the NZ labour market: providing those job opportunities to Kiwis first.

There is a three-stage process that both businesses and the migrant worker need to go through. For Kiwi businesses, Employer Accreditation is the mandatory first step for any business intending to support a migrant worker's application for an Accredited Employer Work Visa (AEWV).

This article outlines what New Zealand businesses need to know about the accreditation process, the requirements, the application stages, and the critical responsibilities that come with hiring workers from overseas. 

What is Employer Accredittion?

Employer Accreditation is a prerequisite for a New Zealand employer to hire migrants under the AEWV scheme. It is an assurance to Immigration New Zealand (INZ) that the business is a genuine and financially viable, compliant, and responsible employer.

The scheme has replaced previous work visa categories (such as the Essential Skills Work Visa) and is structured around a three-stage process:

  1. Employer Accreditation: The businessapplies and is approved as an accredited employe
  2. Job Check: The employer provides evidence     that no available New Zealander can take up the role on offer, the     role has been genuinely advertised, sets out the skills and qualifications     required, and meets market wage and conditions requirements.
  3. Migrant Check (AEWV): The successful     candidate applies for the AEWV, demonstrating they meet the job     requirements, and INZ minimum skills requirement, have a good command of     English, and meet the character and health standards.

The three types of Accreditation

There are several tiers of accreditation, and the required tier depends on the number of migrants the business intends to hire within a given period:

Accreditation  Types

1. Standard

Maximum  Number of AEWVs Supported at any one time: 5

‍2. High-Volume

Maximum  Number of AEWVs Supported at any one time: 6 or more

3. Triangular Employment

Maximum  Number of AEWVs Supported at any one time: Varies

Specific requirements for businesses that employ migrants  to work for an unrelated third party.

Note: Most small to medium businesses will initially apply for Standard Accreditation. The initial accreditation is valid for 12 months. On renewal, accreditations will last 24 months.

Essential Requirements for Standard Accreditation

To achieve Standard Accreditation, a business must demonstrate to INZ that it meets several core requirements:

1. Business and Financial Compliance

  • Financial Viability: The business must be registered with the Inland Revenue DepartmeIRD) and have an IRD number.
  • Business Registration: The business will need to be registered with the Companies Office, operate in New     Zealand, and have an NZ Business Number (NZBN).
  • Solvency: The business and its directors must not be on a stand-down list for any previous immigration, employment,  or company breaches or be subject to a ban on employing migrants.

2. Fair Employment Practices

  • Legal Compliance: The business needs to comply with all relevant New Zealand employment, immigration, and workplace health and safety laws. This includes the Minimum Wage Act and     the Holidays Act.
  • Employment Documentation: The business will need to have compliant employment agreements that meet all     legislative requirements.  
  • No Unlawful Deductions: The employer must demonstrate they will not charge migrants fees for the accreditation     or job check process, or bond the migrant unreasonably.

3. Training and Settlement Support

While not strictly a requirement for Employer Accreditation, employers should demonstrate a commitment to upskilling New Zealanders where possible. Furthermore, all accredited employers will need to provide new migrant employees (on the AEWV) with information about living and working in New Zealand, some examples include (not exhausive):

  • How to register for an IRD number and find accommodation in the local area.
  • Information about their rights and responsibilities, employment,  tenancy, etc.
  • Access to local community and social services.

The Job Check Stage

Once accredited, the Employer will need to apply for a JobCheck for each role they wish to fill with an overseas worker.  The labour market test results are required unless the job is exempt (e.g., highly paid roles or specific Green List roles). The Job Check confirms:

  • Genuine Need: The role is genuinely required and is full-time (a minimum of 30 hours per week guaranteed).
  • Market Rate: The pay rate offered is the market rate for the role on offer.
  • Advertising: The job has been advertised on  acceptable channels for at least 14 days to ensure no suitable New Zealanders are available.  For lower skilled position, the job will need to be advertised for 21 days and engagement with the Ministry of Social Development will need to be made.

Ongoing Responsibilities and Compliance

Accreditation is not a one-off event; it comes with ongoing responsibilities and is subject to renewal (12 months for the initial period, then every 24 months following approval).

Key Employer Responsibilities:

  • Notification of Changes: Employers will need to notify INZ of any significant changes to their business structure,     ownership, or legal compliance status. If an employee leaves the place of employment with over a month remaining on their visa, employers have an obligation to notify INZ of this within a strict time period.  
  • Record Keeping: Employers should maintain accurate records, including employment agreements, wage and time records,     and evidence of recruitment efforts, and retain a copy of the worker’s visa. These records must be readily available for INZ compliance checks.
       
  • Compliance Checks:  INZ conducts regular compliance checks to ensure accredited employers continue to meet all standards (approximately 15% of businesses are audited annually).  Breaches can lead to accreditation being suspended or revoked,  and a stand-down period applied.

Penalties for Non-Compliance

Breaching employment or immigration law can result in serious penalties, including:

  • Fines and prosecution.
  • Mandatory stand-down periods, preventing the business from hiring migrants.
  • Loss of accreditation.

Businesses should view accreditation not just as a permit to hire, but as a commitment to best practice immigration and employment standards. Seeking professional legal and immigration advice is highly recommended to ensure continuous compliance and a smooth process for both the business onboarding the migrant employee and the migrant employee obtaining the right to work in New Zealand, without any business disruption or visa delays. If your business is exploring accreditation, feel free to contact Michelle to start the initial process.