What is Employer Accreditation in New Zealand and How Do I Become an Accredited Employer?

New Zealand's Accredited Employer Work Visa (AEWV) scheme is designed to help employers access skilled migrant workers to fill gaps in their workforce. To hire migrant workers under this scheme, employers must first become accredited by Immigration New Zealand (INZ). This article will provide an overview of the AEWV scheme, the benefits of becoming an accredited employer, and the steps involved in the accreditation process.

What is an Accredited Employer in New Zealand?

An accredited employer in New Zealand is a business or organisation that has been approved by Immigration New Zealand (INZ) to hire migrant workers under the Accredited Employer Work Visa (AEWV) scheme. Accredited employers have demonstrated their ability to comply with immigration and employment laws and provide suitable working conditions for their employees.

There are several benefits to becoming an accredited employer, including:

• Access to a larger pool of skilled workers to fill job vacancies
• Streamlined visa application process for migrant workers
• Ability to retain skilled migrant workers for up to 5 years
• Improved reputation as an employer committed to ethical hiring practices

As of 16th of June 2024, there are three types of accreditation available under the AEWV scheme:

1. Standard accreditation: For employers hiring up to 5 migrant workers at any given time
2. High-volume accreditation: For employers hiring 6 or more migrant workers at any given time
3. Triangular Employment accreditation (formerly known as controlling third party accreditation): For employers who place migrant workers with third-party organisations

Employers looking to renew their Franchisee accreditation (which has been disestablished as of 16th of June 2024) must now apply for one of the three aforementioned accreditations.

Eligibility Requirements for Employer Accreditation

To qualify as an accredited employer in New Zealand, organisations must fulfil certain criteria. The requirements include:

1. Operating as a genuine and viable business: When applying, you must demonstrate that your organisation is a legitimate and sustainable enterprise. This can be evidenced by meeting at least one of the following financial criteria:

• Maintaining profitability over the past 24 months.
• Generating a positive cash flow in each of the last 6 months.
• Possessing sufficient capital or external investment to ensure ongoing viability.
• Having a well-founded 2-year business plan that outlines strategies for sustained viability, such as revenue projections or cash flow forecasts.
• Being registered with Inland Revenue.

1. Adhering to immigration and employment regulations: Neither you nor any key personnel in your organisation can be on the Labour Inspectorate's stand-down list or have a permanent ban from employing migrants. INZ will verify this information.

Franchisees and employers with Triangular Employment accreditation must meet additional criteria:

• Franchisees: To be eligible for accreditation, you must have operated as a franchisee for a minimum of 12 months or possess at least 12 months of experience running another business that offers similar products or services. If your organisation employs more than one person, a minimum of 15% of your workforce must be New Zealand citizens or residents who are guaranteed at least 30 hours of work per week. Upon receiving accreditation, you are obligated to maintain this requirement throughout your accreditation period.
• Employers with controlling third parties: You must have a history of assigning staff within New Zealand for at least the previous 12 months. Further, a minimum of 15% of the staff you place must be New Zealand citizens or residents who are guaranteed at least 30 hours of work per week. If you are placing migrant workers in certain designated construction roles, the percentage of your workforce that must be New Zealand citizens or residents increases to 35%. Once your accreditation is approved, you are required to uphold this condition for the duration of your accreditation period.

Fulfilling these eligibility criteria is crucial for organisations aiming to become accredited employers and employ migrant workers through the AEWV program.

The Accreditation Process to Become an Accredited Employer

To become an accredited employer, organisations must submit an application to Immigration New Zealand (INZ) and demonstrate that they meet the necessary eligibility criteria. The accreditation process consists of the following steps:

Step 1: Prepare the required documents:

Gather all the information and documents needed for your application, such as proof of business registration, a business IRD number, a New Zealand Business Number (NZBN) that matches the details in the Companies Register (unless you are a foreign diplomatic mission), your Business Industry Classification (BIC) Code, and the full name, passport number, and date of birth of key people in your organisation (with their consent to provide this information).

Step 2: Select the suitable accreditation type:

Choose the accreditation type (standard, high-volume, triangular employment accreditation) that aligns with your business requirements and the anticipated number of migrant workers you plan to employ.

Step 3: Apply online:

Complete the online application form accessible through the Immigration Online dashboard on the INZ website. Log in using RealMe® to access the dashboard and start your application. During the application process, you will be required to make a number of declarations and commitments, which, if not met, may result in the revocation of your accreditation.

Step 4: Submit the application fee:

The cost of accreditation varies based on the type of accreditation you are applying for. The below fees are updated as of June 2024.

• Standard accreditation (up to 5 migrants at any one time) carries a fee of NZD $740. If you upgrade from standard to high-volume accreditation, the fee is NZD $480.
• High-volume accreditation (6 or more migrants at any one time) has a fee of NZD $1,220.
• Triangular Employment accreditation has a fee of NZD $3,870.

If your application for accreditation is declined, you have the option to request a reconsideration of the decision. The fee for this reconsideration is NZD $240.

Step 5: Await the decision:

INZ will review your application and notify you of the outcome. The processing time is currently anticipated to take up to 6 weeks (as of June 2024) and may fluctuate based on the intricacy of your application and the overall volume of applications being handled by INZ.

Upon approval, your accreditation will remain valid for either 12 or 24 months depending on specific conditions. To maintain your accreditation status, you will need to apply for renewal before the expiration date. The renewal process entails submitting updated documentation and proof of sustained compliance with accreditation requirements.

As an accredited employer, you are obligated to promptly inform INZ of any notable changes to your business or key personnel. Such notifications must be made within 10 working days of the change taking place.

Obligations of an Accredited Employer

Being an accredited employer comes with certain obligations to ensure the fair treatment of migrant workers and ongoing compliance with immigration and employment laws. The obligations are extensive, and they include (but are not limited to):

1. Ensuring migrant workers meet skill requirements and are suitably qualified

Accredited employers must take reasonable steps to verify that the migrant workers they hire possess the necessary skills, qualifications, and experience for the role.

2. Covering recruitment and employment costs

You must pay all recruitment costs in and outside New Zealand, and not pass these costs on to your AEWV employees. This includes advertising costs, recruitment agency fees, accreditation and job check fees, trade testing, tools you own, and training and induction.

3. Offering training for AEWV holders

You must provide AEWV workers with paid time during work hours to complete all of Employment New Zealand's online employee modules within 1 month of starting work for you. Keep records of the modules being completed.

4. Meeting the commitments made during your accreditation application

You must fulfil the promises made when applying to become an accredited employer, such as complying with New Zealand employment laws and standards and the Immigration Act 2009.

5. Providing settlement support to AEWV employees

Employers must provide information and support to help migrant workers settle into life in New Zealand, such as assistance with finding accommodation, opening a bank account, and accessing healthcare services.

6. Notifying Immigration New Zealand (INZ) of changes in employment status

Employers must inform INZ within 10 working days if an AEWV holder leaves their employment before their visa expires.

7. Maintaining records and compliance with accreditation requirements

Employers must keep accurate records of their migrant workers' employment and demonstrate ongoing compliance with the terms of their accreditation.

8. Paying the market rate for the role

Accredited employers must pay their migrant workers no less than the market rate for the occupation to prevent exploitation and ensure fair wages.

9. Providing a minimum of 30 hours of work per week

AEWV holders must be given full-time employment, with a minimum of 30 hours of work per week.

10. Completing Employment New Zealand's online modules

Employers must ensure that all staff involved in recruitment decisions complete the online employment modules provided by Employment New Zealand to understand their obligations as an employer.

Failure to meet these obligations may result in the revocation of an employer's accreditation and jeopardise their ability to hire migrant workers in the future. That's why we strongly recommend seeking professional advice from a qualified New Zealand immigration lawyer for tailored advice and guidance to your business or visiting the official New Zealand Immigration webpage on legal compliance for a more comprehensive understanding of your obligations as an AEWV holder.

Click here for guidance on what can be provided as evidence of you meeting your obligations, and alternatively, where you need bespoke advice on what evidence you are required to provide to prove adherence to these obligations, reach out to one of expert immigration lawyers.

Additional Obligations of an Employer with Triangular Employment Accreditation

Employers who place migrant workers with third-party organisations have additional responsibilities to ensure the well-being and fair treatment of these workers. Generally speaking, these obligations include ensuring the third party's compliance with immigration and employment laws, monitoring the workers' safety and employment conditions, and having processes in place to address any issues that arise. You can visit the official Immigration New Zealand website page here for a detailed list and explanation on these additional requirements and check here for guidance on what can be provided as evidence of you meeting your obligations.

Failure to meet these additional obligations may result in the revocation of the employer's triangular employment accreditation. You can check this page here for a detailed explanation of the evidence you must present to prove your compliance with these additional obligations, or alternatively, speak to one of our experienced immigration lawyers for reliable legal advice tailored to your situation.

Once an employer has obtained accreditation, they can begin the process of hiring migrant workers under the AEWV scheme. The hiring process generally involves the following steps:

Step 1: Advertise the Job and Engage with Work and Income

The first step is to gather necessary information and documents about the role, such as the job title, location, ANZSCO code, and skill level. Employers must also prepare the job description, employment agreement, and other relevant documents. Unless the role is exempt, the job ad must run for at least 14 days and must not be older than 90 days (from the date of the job listing closing) at the time job check application is lodged and, depending on the ANZSCO skill level, engage with Work and Income.

Step 2: Checking the migrant's qualifications

Before inviting a migrant to apply for an AEWV, employers must ensure that the candidate meets the AEWV skill requirements set by INZ and possesses the skills and experience specified for the role. Employers are required to keep accurate records of the steps taken to verify the migrant's suitability, which may include obtaining third-party evidence, such as letters from previous employers or educational institutions.

Step 3: Applying for a Job Check

The next step is to apply for a Job Check by submitting an online application and a paper form (INZ 1384) via the Immigration Online dashboard. Employers must provide details of the role, advertising carried out, and the outcome of any engagement with Work and Income. A fee of NZD $610 is associated with this application. Multiple jobs can be included in one application if they share the same details and are covered by the same advertising and employment agreement. Job checks are anticipated to take up to 7 weeks (as of June 2024).

Step 4: Inviting the migrant to apply

Upon approval of the Job Check, employers can log in to Immigration Online and send a job token to the suitably qualified migrant, inviting them to apply for the AEWV. It is crucial to provide the candidate with a copy of the employment agreement and signed offer before they begin their application. Employers should also be aware of the maximum continuous stay limits for AEWV holders.

Step 5: Visa application and processing

The migrant then submits their visa application online, providing evidence of their identity, qualifications, and work experience, as well as meeting health and character requirements. Processing times may vary depending on the completeness of the application and the volume of applications received but are currently anticipated to take 4 months (as of June 2024).

Throughout the hiring process and the migrant's employment, employers must adhere to their accreditation conditions, including ensuring that the worker is paid at least the market rate and provided with the minimum required hours per week. When a worker's visa is nearing expiry, employers may need to apply for a new Job Check or explore other visa options, such as residence pathways, depending on the migrant's circumstances.

For more detailed information on specific aspects of the hiring process, such as advertising requirements, calculating pay rates, sector agreements, and reusing job tokens, employers are encouraged to refer to the INZ website.

Renewing and Changing Accreditation Types

Employer accreditation under the AEWV scheme is initially valid for 12 months. After this period, employers who wish to continue hiring migrant workers must apply for renewal. The duration of the renewed accreditation depends on the type of accreditation:

• 24 months for standard accreditation
• 24 months for high-volume accreditation
• 12 months for triangular employment accreditation

If an employer renews an accreditation that expired more than 12 months ago, the renewed accreditation will be valid for 12 months, regardless of the accreditation type.

The renewal process involves the following steps:

1. Gathering updated documentation: Employers must provide current evidence of their business operations, financial stability, and ongoing compliance with immigration and employment laws. This includes proof of being a viable and genuinely operating business, compliance with business standards, and settlement support provided to AEWV employees. Faster application processing is possible if supporting documents are uploaded during the application process.
2. Completing the online renewal application: Employers must submit their renewal application through the Immigration Online dashboard, selecting the appropriate accreditation type and paying the applicable fee. It is crucial to apply for the correct accreditation type to avoid having to reapply and pay another fee.
3. Assessing the renewal application: INZ will review the renewal application and inform the employer of the outcome. The renewed accreditation will be valid from the date of approval. It is recommended to allow at least 6 weeks (estimated as of June 2024) for the renewal process and to check the current processing times on the INZ website.

During the renewal process, employers may also change their accreditation type. For example, an employer with standard accreditation may need to upgrade to high-volume accreditation if they wish to hire more than five migrant workers at any given time. To change accreditation type, employers must submit a new application and pay the applicable fee.

If an employer's accreditation expires while their renewal application is being processed, they may qualify for an interim 3-month accreditation. This allows them to continue applying for Job Checks and using existing job tokens to hire migrant workers while awaiting the outcome of their renewal application.

It is important to note that the process and requirements for renewing or changing accreditation type may be subject to change. Employers should check the INZ page here for more details about what's involved if you wish to renew or change your accreditation or reach out to one of our expert immigration lawyers for tailored legal advice.

Conclusion: Accredited Employer Work Visa

Becoming an accredited employer in New Zealand is a significant step for businesses looking to access skilled migrant workers to fill gaps in their workforce. By understanding the eligibility requirements, accreditation process, and obligations involved, employers can navigate the AEWV scheme successfully and reap the benefits of hiring skilled migrant workers.

Employers must remain committed to complying with immigration and employment laws throughout their accreditation period, ensuring that they provide fair working conditions and support their migrant workers' integration into life in New Zealand.

The AEWV scheme offers a valuable opportunity for businesses to expand their talent pool and bring in the skills and expertise they need to thrive. By becoming an accredited employer, businesses can demonstrate their commitment to ethical hiring practices and contribute to the growth and development of New Zealand's economy.

If you are considering becoming an accredited employer, it is essential to seek professional advice and support to ensure that you meet all the necessary requirements and obligations. With the right preparation and guidance, your business can successfully navigate the accreditation process and unlock the benefits of hiring skilled migrant workers under the AEWV scheme.