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IMPACT – HIGH
New Zealand will implement a handful of changes to the Talent (Accredited Employer) Work Visa program on Oct. 7. These are the first of a series of changes expected to occur over the next 18 months, with a new employer-led temporary work visa program to be introduced in 2021.
The Oct. 7 changes include:
While the finer details of the 2021 changes are not yet available, Immigration New Zealand has published an overview on its website. Over the next 18 months, INZ states that it will:
INZ has stressed that a number of rules will not change. For example, lower-skilled foreign workers will still be required to leave New Zealand for at least one year after working for three years in the country. The new visa program will also still impose visa conditions relating to the visa holder’s employer, job and work location, with a variation of conditions application to be submitted to INZ when changes to these arrangements are required.
Analysis & Comments: The Oct. 7 changes will, in some cases, make it more difficult to sponsor foreign workers on a Talent (Accredited Employer) Work Visa. Employers should note that the current, more favorable, rules will continue to apply to applications that are lodged between now and Oct. 7. Note also that employees already holding Talent (Accredited Employer) Work Visas are not impacted by the changes, their visa validity, visa conditions and visa options will be maintained.
While detailed information about the 2021 changes has not been released, Deloitte will continue to follow any key developments and will provide updates to clients as the information becomes available.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/aboutto learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
IMPACT – MEDIUM
Reports on the salaries paid to highly qualified specialists during the third quarter of 2019 (July through September) must be submitted in October. The reports, which employers must complete to show that they have met minimum salary payment levels, are required quarterly.
Analysis & Comments: Companies should ensure that they submit their quarterly reports on time and that the salaries comply with wage thresholds for HQS workers.
Source: Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? The Ministry of Business, Innovation and Employment has completed its regular review of the Essential Skills in Demand (ESID) lists.
What does the change mean? Changes to the lists will primarily affect New Zealand businesses and foreign nationals who are seeking to make use of the Essential Skills work visa or the Long Term Skill Shortage List work visa programs.
Background: The ESID lists include the Long Term Skill Shortage List, the Regional Skill Shortage List, which will replace the Immediate Skill Shortage List, and the Construction and Infrastructure Skill Shortage List.
Immigration New Zealand announced the changes May 8 and they were implemented on May 27. The following adjustments have been made to the ESID lists:
Analysis & Comments: Employers should consult the full lists, which are regularly reviewed and updated, when planning to recruit or hire foreign nationals.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
What is the change? New Zealand will introduce an Electronic Travel Authority system this fall.
What does the change mean? Beginning Oct. 1, nationals of 60 visa-waived countries will need to obtain an ETA before traveling to New Zealand. The ETA system is designed to provide security benefits and streamline the prescreening process.
Additional information: Those who will require an ETA will need to complete a short online form and pay a small processing fee. The form will request basic information, such as:
ETAs will be valid for two years and will cost 9 New Zealand dollars (about US$5.90). The requirement will apply to visa-waived nationals even if they are transiting and New Zealand is not their final destination.
Analysis & Comments: Travelers from visa-waived countries should take note of the pending change, especially if they are planning travel to New Zealand on or after Oct. 1. The change will not affect travel procedures for New Zealand citizens, Australian citizens or holders of valid New Zealand visas.
What is the news? The Minister for Immigration has proposed significant changes to the employer-assisted temporary work visa system and has opened a public consultation, allowing the business community and other interested parties to submit their feedback. The public consultation period will end in March 2019, with the final proposal to be tendered to Cabinet in June 2019.
Key proposals:
Analysis & Comments: The proposed changes, if implemented, will have a significant impact on the New Zealand business community. The reform reflects similar regional and global shifts towards increased labour-market protections. Changes may reduce the capacity for established and compliant users of the skilled visa programs to make efficient and timely recruitment decisions. However, once the implementation phase is complete, the new framework should provide greater clarity to end-users regarding eligibility criteria, processing and evidentiary requirements, and INZ decision-making trends. This should have a positive effect on the efficiency of visa outcomes across the board. New streamlined processing arrangements for premium accredited sponsors may also assist in this regard.
What is the change? Income thresholds for Skilled Migrant and Essential Skills visas increased Monday, according to a notice by Immigration New Zealand.
What does the change mean? The increases are part of the annual review process and are detailed as follows (all figures in New Zealand dollars):
Critical Skills Visas
Essential Skills Work Visas
Analysis & Comments: Employers should budget for the increases. The new income thresholds affect only applications received by Immigration New Zealand on and after Nov. 26. The changes do not affect current visa holders or applications received by the government before Nov. 26.
Medium Priority
What is the immigration news? New Zealand will introduce an Electronic Travel Authority for select travelers next year. The ETA system is designed to provide security benefits and streamline the pre-screening process.
Additional information: Individuals who will require an ETA will need to complete a short online form and pay a small processing fee. The form will request basic information such as:
BAL Analysis: Travelers should take note of the pending change, especially if they are planning travel to New Zealand in 2019. BAL will continue to monitor developments in New Zealand, including any announcement of an implementation date.
Travelers who will be impacted to by the new requirement are encouraged to apply for their ETA as soon as possible.
This alert has been provided by the BAL Global Practice group and our network provider Cavell Leitch in New Zealand. For additional information, please contact your BAL attorney.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? The New Zealand government will increase visa and immigration-related filing fees on Nov. 5.
What does the change mean? Employers should plan for the increases, which will be felt most in the work visa categories (increase of 54 percent) and employment accreditation (increase of 20 percent). Visitor visas and miscellaneous categories will increase by 10 percent and applications submitted online will no longer receive a discount.
Some of the relevant business immigration fees are highlighted in the following chart.
Migrant Category
A full schedule of fees is available here.
Analysis & Comments: Companies should factor the fee increases into their budgets and consider filing affected applications before the rate hikes take effect.
License No: 201501694
What is the change? Immigration New Zealand has lengthened the validity period of interim visas, which are granted to employees whose applications to extend their status are still pending while their current visa is nearing expiration.
What does the change mean? Interim visas will be valid for 21 days after an application is denied or withdrawn, or for six months if a decision has not been made on the application.
Background: Interim visas are granted at the discretion of INZ if an individual’s visa is about to expire and the application for another temporary visa has not been decided. Employees who are granted an interim visa while their application for a further work visa is pending may be eligible to continue working on the interim visa if the job is in the same position, for the same employer and in the same location as their current visa. Additional information on the terms of each type of interim visa is available here.
Under the new policy, the interim visa starts from the day after the current visa’s expiration date, and expires upon approval of the application, 21 days after a denial of the application, or six months if a decision has not been made. Previously, interim visas expired as soon as a decision was made on the application or six months after the interim visa was first granted, making its holder unlawful the day after their visa extension was denied.
Analysis & Comments: The new policy gives employees who are denied a work permit extension three weeks of additional time to determine their options while continuing to work in their current position.
Licence No: 201501694 (New Zealand)
IMPACT – LOW
What is the change? In an effort to attract critical skills and talent, the New Zealand government has announced that it will be providing new paths for international students to obtain work authorization post-study.
What does the change mean? The changes are intended to attract high-skilled talent and will be beneficial to international students who plan to study in New Zealand or who are currently studying in New Zealand. The changes are intended to encourage international students to remain in New Zealand after study and facilitate work authorization without employer assistance.
Background: Following a period of public comment and consultation, the New Zealand government announced on Aug. 8 that it will implement changes for foreign students’ post-study work visas. Post-study work authorization for foreign students will no longer require employer assistance or sponsorship at all visa levels, which will allow students work authorization portability and the ability to change employers with greater ease.
Other key changes will include one-year post-study open work visas for Level 4-6 students and non-degree level 7 qualifications. Students outside of Auckland may benefit from a two-year open-study work visa for Level 4-6 and non-degree level 7 qualifications (provided study is completed by December 2021, at which point the benefit will revert to a one-year post-study open work visa). Graduate diploma recipients working toward registration with a professional or trade body may be eligible for an additional year of work visa validity.
Degree students, Level 7 or above, may be eligible for a three-year post-study work visa. Further, partners of students will be eligible for open work visas in their own right and children will be eligible to attend fee-free domestic schooling, provided that the foreign student is at Level 8 qualifications in areas specified on the Long Term Skills Shortage List.
Analysis & Comments: Foreign students as well as employers will benefit from recent changes to post-study work visas and should look into eligibility and benefits depending on student level and location. The most notable change is that students will no longer require employer assistance for post-study work visas, which will provide students and employers flexibility in post-study work authorization. For a better understanding of how these changes may impact post-study work visas, a summary of current regulations and the impending changes is available here.