Changes to the labour market and impacts on migrant employment

Commentators and business report a changing labour market with increased numbers of applicants responding to job ads. Economists expect an increase to the unemployment rate over the next 12 to 18 months.

How might this impact recruiting or retaining migrant workers?

As an employer of migrant workers, there are some things you should start thinking about.

The job check is a vital part in the work visa application process. At this stage of the process, employers need to prove they have advertised vacancies and have been unable to attract and recruit suitable New Zealand workers. This is known as the “labour market test". The only exceptions to the labour market test are jobs paying $59.32 an hour or more, OR occupations on the Green List.

Immigration NZ is looking closely whether employers' attempts to find local workers are genuine. At the lower end of the skill spectrum, there may now be New Zealanders available to fill vacancies who were not available the last time you advertised. When did you last advertise?

The government reintroduced 90-day trial periods for all businesses. However, trial periods cannot be included in Employment Agreements for AEWV (Accredited employer Work Visa) migrant workers. Take advice from your HR specialist about including a "Probation period" in your agreements.

Using the expiry date of a work visa as the sole reason to terminate a migrant worker is not straightforward. An Employment Court decision led to an employer receiving a stiff financial penalty for terminating a worker because their work visa was expiring. The Employment Court found a reasonable employer should have taken immigration advice or helped the employee get immigration advice before terminating. Migrant worker's employment rights are no different to New Zealand workers. If you are in retrenchment mode, take employment and immigration advice from your specialist providers to avoid similar problems.

Relocating an individual or family to New Zealand can be expensive, stressful and time-consuming. At Malcolm Pacific Immigration we partner with experts who can help reduce your time and improve settlement outcomes of your migrant workers. Our partners include banks, relocation experts, accountants, lawyers, visa specialists for other countries and much more.

Contact our team here for more information.