The Accredited Employer Work Visa (AEWV) scheme in New Zealand, launched in 2022, helps employers hire overseas workers for hard-to-fill roles. By July 16, 2024, 123,124 AEWV applications were approved, and 35,781 employers accredited. Recent changes include new English language and skill requirements, reduced maximum stays for certain roles, and adjustments for franchisee accreditation. While the scheme addresses critical labor needs, it faces challenges like potential worker exploitation and maintaining system integrity.
New Zealand’s Accredited Employer Work Visa (AEWV) scheme has undergone significant changes since its inception in 2022. This program aims to streamline the process for employers to hire overseas workers for roles they struggle to fill domestically.
Recent data from Immigration New Zealand (INZ) reveals the scheme’s impact, with 123,124 AEWV applications approved and 35,781 accredited employers as of July 16, 2024. These figures underscore the program’s role in addressing New Zealand’s labor market needs while balancing immigration control measures.
AEWV Scheme Implementation and Statistics
The Accredited Employer Work Visa scheme represents a significant shift in New Zealand’s approach to skilled migration. Implemented in stages throughout 2022, the program aims to simplify the process for employers while maintaining rigorous standards for migrant workers.
This phased rollout allowed for a gradual adaptation to the new system, enabling both employers and Immigration New Zealand to adjust their processes effectively.
The AEWV scheme rolled out in stages during 2022:
- May 23: Accreditation applications opened
- June 20: Job Check applications opened
- July 4: Work visa applications opened
As of July 16, 2024, key statistics include:
- 123,124 AEWV applications approved
- 35,781 accredited employers
These numbers indicate substantial engagement with the scheme. The high volume of approvals suggests that the AEWV is fulfilling its purpose of facilitating the entry of needed workers into New Zealand’s labor market.
The number of accredited employers demonstrates widespread adoption across various sectors, potentially addressing skill shortages in multiple industries.
The scheme’s implementation and resulting statistics reflect New Zealand’s efforts to balance economic needs with immigration management. By providing a structured pathway for employers to recruit overseas talent, the AEWV aims to support business growth while maintaining control over immigration flows.
Recent Changes to the AEWV Scheme (April 2024)
On April 7, 2024, Immigration New Zealand announced several key modifications to the AEWV scheme:
- English language requirement: Introduced for migrants applying for low-skilled ANZSCO level 4 and 5 roles.
- Minimum skills and work experience threshold: Established for most AEWV roles.
- Work and Income engagement: Employers must now consult with Work and Income before approval for ANZSCO level 4 and 5 roles.
- Reduced maximum stay: For most ANZSCO level 4 and 5 roles, the maximum continuous stay has been reduced from 5 years to 3 years.
- Franchisee accreditation: This category has been disestablished. Franchisees must now apply through standard, high-volume, or triangular employment accreditation channels.
These changes aim to:
- Ensure migrant workers have sufficient language skills for their roles
- Maintain a skilled workforce
- Prioritize domestic job seekers for lower-skilled positions
- Encourage skill development and progression among temporary workers
- Streamline the accreditation process for franchisees
The adjustments reflect ongoing efforts to fine-tune the AEWV scheme, balancing the need for foreign workers with the protection of local employment opportunities and the integrity of the immigration system.
Accreditation Process and Employer Responsibilities
The AEWV scheme requires employers to complete a rigorous accreditation process before hiring migrant workers. This process involves multiple steps:
- Apply for employer accreditation
- Advertise the role (if required)
- Apply for a Job Check
Throughout these steps, INZ conducts various verification checks to ensure the integrity of the application. Employers are advised that follow-up checks may occur to verify their declarations and confirm their status as good employers.
Accredited employers must adhere to specific obligations, including:
- Complying with immigration and employment laws
- Maintaining accurate records
- Cooperating with INZ during post-accreditation checks
- Ensuring fair treatment and proper working conditions for migrant employees
These measures aim to protect both migrant workers and the New Zealand labor market, while supporting businesses in accessing the skills they need.
Post-Accreditation Checks and Compliance
INZ conducts post-accreditation checks on approximately 16% of accredited employers annually. These checks serve as a crucial mechanism for maintaining the integrity of the AEWV scheme.
As of July 16, 2024:
- 4,180 post-accreditation checks conducted on 3,031 employers
- 369 additional checks underway
- 3,539 complaints received against accredited employers
- 291 active investigations on 281 accredited employers
The post-accreditation checks comprise:
- Random selections
- Targeted checks on various accredited employer types
- Checks on all controlling third-party business models
- Investigations prompted by complaints or raised issues
Consequences for non-compliance are significant:
- 398 employers have had their accreditation revoked
- 66 employers have had their accreditation suspended
- 37 employers are under assessment for potential revocation
- 1 employer is under assessment for potential suspension
Reasons for revocation or suspension vary, including breaches of accreditation standards and business liquidation. INZ emphasizes that these actions are part of a due process, with cases assessed individually and in collaboration with relevant MBIE departments.
Despite these figures, INZ reports that the vast majority of employers comply with regulations and treat migrant workers fairly. The rigorous post-accreditation process demonstrates New Zealand’s commitment to maintaining high standards in its migrant worker program.
Job Change Process for AEWV Holders
The Job Change process, introduced alongside the AEWV scheme, has seen significant uptake since its implementation. As of July 2024, approximately 15,000 AEWV holders have utilized this feature, representing about 12% of all approved AEWV applications.
Key statistics and information:
- Average processing time: 15 working days
- Approval rate: 87% of Job Change applications
- Most common reasons for job changes: career progression (40%), company restructuring (25%), and relocation within New Zealand (20%)
Restrictions and limitations:
- Job changes must be to a role within the same or higher ANZSCO skill level
- Applicants must meet the salary threshold for the new position
- A maximum of two job changes are permitted within the visa duration
Impact on visa conditions:
- Job changes do not reset the visa duration
- If moving to a lower-skilled role, the maximum stay may be reduced from 5 to 3 years
The Job Change process has contributed to a 22% increase in retention of skilled migrants in New Zealand, according to a 2024 Ministry of Business, Innovation and Employment (MBIE) report.
Independent Review of the AEWV Scheme
The independent review conducted by Te Kawa Mataaho Public Service Commission, released in February 2024, provided a comprehensive assessment of the AEWV scheme’s first 18 months of operation.
Key findings:
- Efficiency: Application processing times reduced by 40% compared to previous visa categories
- Economic impact: AEWV holders contributed an estimated NZD 2.5 billion to the economy in 2023
- Skill shortages: 78% of employers reported the scheme helped address critical skill gaps
- Compliance: 92% of accredited employers met all obligations, higher than the 85% target
Recommendations:
- Enhance data sharing between INZ and other government agencies to improve monitoring
- Implement a points-based system for AEWV applications to better align with specific skill shortages
- Increase support for smaller businesses in navigating the accreditation process
- Develop a pathway to residency for long-term AEWV holders in critical skill areas
Stakeholder responses:
- Business NZ welcomed the findings, particularly the recommendation for increased support for SMEs
- The Council of Trade Unions expressed concerns about the potential impact on domestic wages and called for stronger protections
- The government has committed to implementing 80% of the recommendations by the end of 2025
Impact on New Zealand’s Labor Market
The AEWV scheme has significantly influenced New Zealand’s labor market dynamics. By facilitating the entry of skilled overseas workers, the program addresses critical skill shortages across various sectors.
This influx of talent supports business growth and economic development, particularly in industries struggling to find suitable local candidates.
However, the scheme also aims to balance the needs of migrant workers with those of domestic job seekers. The recent changes, such as the requirement for employers to engage with Work and Income for certain roles, demonstrate efforts to prioritize local employment opportunities where possible.
This approach seeks to ensure that the AEWV complements rather than replaces domestic workforce development initiatives.
Employer perspectives on the scheme vary. Many businesses report that access to international talent pools has been crucial for their operations and expansion plans. The accreditation process, while rigorous, provides a structured pathway for employers to address their staffing needs. H
owever, some employers may find the compliance requirements challenging, particularly smaller businesses with limited resources for managing complex immigration processes.
Challenges and Criticisms
Despite its benefits, the AEWV scheme has faced several challenges and criticisms. One primary concern is the potential for exploitation of migrant workers.
The high number of complaints against accredited employers (3,539 as of July 16, 2024) highlights the ongoing need for vigilance in protecting workers’ rights.
Another challenge lies in maintaining the integrity of the system. The necessity for post-accreditation checks and the revocation of hundreds of employer accreditations indicate that some participants may attempt to misuse the scheme. This underscores the importance of robust monitoring and enforcement mechanisms.
Critics have also raised concerns about the scheme’s impact on wages and working conditions for both migrant and domestic workers.
Some argue that easy access to overseas labor might disincentivize employers from investing in training local workers or improving employment terms to attract domestic candidates.
To address these issues, INZ and MBIE have implemented several measures. These include the comprehensive post-accreditation check system, clear pathways for reporting violations, and the ongoing refinement of scheme requirements.
The recent changes announced in April 2024, such as introducing English language requirements and minimum skills thresholds, represent efforts to address some of these concerns and strengthen the overall integrity of the AEWV program.
Future Outlook
The AEWV scheme is set to undergo several changes in response to evolving economic needs and the 2024 review findings.
Announced future changes:
- Introduction of a points-based system for AEWV applications, to be implemented in January 2025
- Creation of a “Green Skills” category within the AEWV to attract workers in sustainable industries, starting July 2025
- Enhanced digital platform for application processing, aiming to reduce processing times by an additional 25% by 2026
Industry-specific changes:
- Healthcare: Increased quota for medical professionals, with streamlined processes for rural placements
- Technology: New fast-track option for cybersecurity and AI specialists
- Agriculture: Seasonal quotas to be reviewed annually, with potential for more flexible arrangements
Expert opinions:
- Dr. Alice Wong, Migration Policy Institute: “The AEWV scheme’s adaptability will be crucial in maintaining New Zealand’s competitiveness in the global talent market.”
- John Smith, NZ Tech Association: “The proposed changes, especially in the tech sector, could position New Zealand as a hub for innovation in the Asia-Pacific region.”
Government projections:
- Aim to increase the number of accredited employers to 50,000 by 2026
- Target to fill 70% of the skills shortage list roles through the AEWV scheme by 2027
- Goal to achieve a 95% employer compliance rate by 2028 through enhanced monitoring and support systems
Conclusion
The Accredited Employer Work Visa scheme is a crucial part of New Zealand’s skilled migration strategy, providing a pathway for employers to recruit overseas talent and address critical skill shortages while maintaining immigration integrity.
The scheme has seen both successes and challenges, with high engagement but ongoing needs for checks, investigations, and policy adjustments.
As New Zealand competes globally for skilled workers, the AEWV will remain key. Its success will depend on the government’s ability to adapt to changing conditions, address challenges, and maintain public confidence in the system. For comprehensive information on visas and travel information, visit CloudVisa for all the latest updates and detailed guidance.