This is a key component of an Essential Skills work visa application. The inevitable higher levels of unemployment in NZ will mean employers should expect to encounter increased resistance from Work & Income. They will be increasing expectations that employers act in good faith when considering any potentially suitable New Zealand residents or citizens who may be available for the work. If there is a New Zealand candidate that is suitably qualified or can be readily trained to do the role on offer, then the labour market test will not be satisfied.

In the situation of a visa renewal application for an incumbent migrant worker, the employer will be required to conduct a further labour market test. The MSD / INZ expectation will be that the role is offered to any suitable Kiwi applicants. Expect the tougher labour market test to be implemented almost immediately following the lockdown, even before INZ has officially amended its formal policy in this regard. Post lockdown, we anticipate the focus on this component will steadily increase until such time as the new policy is fully operational.

Linked to the introduction of a tougher labour market test will be an increased expectation on accredited employers to demonstrate their commitment to recruiting, training and upskilling New Zealand citizens and residents. This requirement is one of the key criteria under the current accreditation policy. However, with a greater “pool” of potentially suitable New Zealand citizens available in the market, employers will need to do more to show that they are genuinely committed to recruiting and training “Kiwis first”.

INZ has indicated it will move to a new system of compulsory accreditation for any employer that wishes to hire a migrant worker via an employer-sponsored visa, as early as January 2021.

Make your migrant employee’s next visa application as soon as possible, before new tougher immigration policy is introduced.

It’s important to take a close look at the migrant workers in your business with a view to anticipating the likely impact that these changes will have on them. This will be of particular importance to those employees who are in low skilled or low paid roles. If you have Essential Skills visa holders or holders of Post Study (open) work visas, that are key employees to retain in your business and whose current visa will expire prior to 31 December 2020.

Review job descriptions, advertisements and selection processes

It will be important for job descriptions, job advertisements and associated supporting documentation to be well drafted to clearly articulate the key skills, qualifications and experience required for the role. Care needs to be taken in the selection process to ensure procedural accuracy and that no New Zealand citizens/resident applicants are unfairly disadvantaged. All supporting documentation needs to be accurate. The importance of providing well-drafted employer supporting documentation is critical to ensure applications are INZ “decision-ready”.

Accredited employers and those considering becoming accredited should aim to complete their renewals or their applications as soon as possible, in light of expected processing time delays.

This higher standard will likely be applied to almost all employers of migrant workers. The compulsory accreditation system had been flagged for introduction in 2021.

Aimee Pernites and I are highly experienced in supporting employers & employees to navigate the immigration system to make it work for their needs or business. We are able to assist you to ensure you can be prepared as best as possible for the new immigration policy, post COVID-19.