If you want to hire a foreign worker for your business, you must ensure that they have a valid visa with working rights. While the candidate will generally be responsible for applying for the visa, you will need to provide some supporting documentation. However, various laws have changed your obligations around recruiting foreign workers for temporary work. This article explores what to keep in mind when you want to hire foreign workers in New Zealand as a business.

Steps You Need to Take

Check if the Employee Can Legally Work for You

Before you hire foreign workers, you need to check that their visa conditions allow them to work in NZ. If they do not have a visa, you:

  • may still offer them the position on the condition that they acquire a valid visa before starting employment; and
  • should check that they have acquired a valid visa through VisaView on the Immigration NZ website before proceeding with hiring.

You cannot legally hire foreign workers if they do not have a valid visa with working rights.

Conduct a Labour Market Test

Most visas require you to conduct a labour market test to confirm whether any New Zealanders can fill the role before you hire foreign workers. You should be able to show that you made a genuine attempt to attract and recruit suitable domestic workers for the job, including providing evidence of:

  • internet advertising; and
  • a report on how many applications you received.

The labour market test takes a fairly strict approach. You need to:

  • list the salary when advertising the job;
  • provide information about low-paid jobs to the Ministry of Social Development (MSD); and
  • accept potential workers referred by MSD for a low-paid job.

If you cannot find any suitable New Zealanders for the role, you can proceed with hiring foreign workers.

What Are the Most Common Working Visas?

There are two main types of work visas, which are:

  • temporary; and
  • residence.

A temporary visa has a set period of time, usually less than five years. On the other hand, a resident visa allows the worker to stay in New Zealand indefinitely.

The temporary visa can be either 'open' or 'employer supported'. An open visa means the worker already has a visa that allows them to work for you. Some examples of open work visas include:

Employer Supported Visa

If the foreign worker does not have an open visa, they can apply for an employer-supported visa. Before they can apply for this visa, you need to offer them a job. The most common employer-supported temporary visa is the Accredited Employer Work Visa (AEWV), which was previously known as the Essential Skills Visa.

Residence Visas

The main residence visa is the Skilled Migrant Category Visa. This is a points-based visa and takes into account the foreign worker's:

  • job offer;
  • salary;
  • work experience and academic qualifications;
  • age; and
  • job location.

The foreign worker must first submit an expression of interest (EOI) before Immigration New Zealand will invite them to apply for residence. Many foreign workers come to New Zealand on an Essential Skills Visa and then move to the Skilled Migrant Category Visa.

AEWVs

The AEWV launched in July 2022 and seeks to link your business and the worker requiring a visa. Before your foreign worker can apply for this visa, you will need to become an accredited employer. You can get accreditation and hire foreign workers for a period of three years.

Additionally, there are some limitations, such as that you:

  • will need to pay at least the median wage in New Zealand; and
  • have carried out a labour market test and cannot find a suitable New Zealander for the role.

You must be accredited to hire foreign workers on the new temporary work visa.

The temporary visa replaces the:

  • Essential Skills Work Visa;
  • Essential Skills Work Visa — approved in principle;
  • Talent (Accredited Employer) Work Visa;
  • Long Term Skill Shortage List Work Visa;
  • Silver Fern Job Search Visa; and
  • Silver Fern Practical Experience Visa.

Since 2021, if you want to hire a foreign worker on the new temporary work visa, you will need to obtain:

  • the mandatory employer accreditation;
  • a job check, including a market salary rate check to make sure that you will be paying the worker in line with the NZ market rate,
  • a labour market test to ensure New Zealand workers are not available; and
  • a worker check to ensure that they have the character, health requirements and skills to work in their new position.

Updates to the Law in 2024

Migrant exploitation is a serious employment and immigration issue. From 6 January 2024:

  • you must provide employment related documentation within 10 days when requested by an Immigration Officer; and
  • the Chief Executive of MBIE may publish your name for not following relevant immigration law.

You should ensure that you always follow new legal updates. Starting from 6 January, you cannot:

  • allow someone to work for you when they are legally not allowed to;
  • employ someone in a way that is inconsistent with the working rights in their visa; and
  • fail to supply any requested documentation to Immigration NZ.

Although many of these changes do not change your existing obligations, they standardise the penalties you may incur for a breach.

Key Takeaways

You must follow certain requirements before hiring foreign workers, such as checking their visa conditions to confirm whether they can legally work in New Zealand and conducting a labour market test to ensure that there are no alternative suitable domestic workers.