Employers that incur penalties for severe breaches of employment laws on or after April 1, 2017 may face bars from recruiting foreign nationals for six months to two years. This measure applies to employers supporting work visa applications and approvals; those seeking accredited employer status or supporting residence class visa applications based on employment; and those who are part of the Recognised Seasonal Employer scheme.
Penalties and Bars
The Ministry of Business, Innovation and Employment (MBIE) will apply bars for major breaches that involve formal infringement notices and higher penalties, e.g., formal Labour Inspectorate infringement notices, Employment Relations Authorities or Employment Court penalties (including those resulting from private actions taken by employees) and Employment Court banning orders. The bar will be proportionate to the severity of the breach and the imposed penalty, as follows:
- Six-month bar will apply for a penalty up to and including NZD 1,000;
- 12-month bar will apply for penalties over NZD 1,000 but less than NZD 20,000;
- 18-month bar will apply for penalties of NZD 20,000 and over but less than NZD 50,000; and
- 24-month bar will apply for penalties of NZD 50,000 and above.
Implementation
The Labour Inspectorate will maintain a list of noncompliant employers, and INZ will use this list to prevent them from recruiting foreign nationals during the bar.
Immigration New Zealand (INZ) will place employers that incur penalties before April 1, 2017 on a list of noncompliant employers, and visa applications for their employees will be judged against immigration laws that require compliance with employment laws. The exact rules for employers that incur penalties before April 1, 2017 will be developed in future regulations.
What This Means for Employers and Foreign Nationals
The MBIE will be informing employers that are likely to face a bar. Employers who are informed of a bar should contact their immigration professional to discuss the next steps.
Foreign nationals working for employers found noncompliant during their employment will be allowed to work for the duration of their existing work visa, but will not be granted an additional work visa for the noncompliant employer.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Explore more at Fragomen
Fragomen news
Fragomen announces the launch of its Center for Strategy and Applied Insights and welcomes Senior Policy Advisor Amy Nice.
Media mentions
Manager Harry Goldstraw shares what UK employers need to consider when sending employees on short-term contracts to the European Union.
Blog post
This blog highlights the growing momentum of the UK's semiconductor sector, emphasising its strategic importance for the nation's science and technology ambitions, while also addressing upcoming challenges in talent acquisition due to proposed changes in immigration policies.
Blog post
This blog outlines key immigration and mobility impacts stemming from the 2024 Olympic and Paralympic Games in Paris.
Media mentions
Senior Managerin Katharina Vorländer und Managerin Dr. Adela Schmidt sprechen über die Bedeutung der Einstellung ausländischer Fachkräfte in Deutschland und die langfristige Sicherheit ihres Aufenthaltsstatus.
Blog post
This blog discusses the impacts of the UK's new salary thresholds for Skilled Workers on the country's technology sector.
Podcast
El director Miguel Jiménéz y el Senior Business Immigration Manager Rodrigo García analizan la nacionalidad y naturalización mexicana.
Blog post
Practice Leader of Sub-Saharan Africa Lunga Mani discusses South Africa's Trusted Employer Scheme and how complying member companies can benefit from a streamlined immigration process.
Blog post
This blog outlines the key immigration and corporate considerations that companies should keep in mind when closing in the UAE.
Blog post
Fragomen's Alfred Chong, Raga Rasuanta and Sofea Aiman discuss how Indonesia's 2024 election results could impact the country's immigration policies.
Blog post
This blog discusses the recent Statement of Changes to the UK immigration rules and its impacts.
Media mentions
International Institute of Humanitarian Law’s Department of International Refugee Law and Migration Law featured Fragomen and Senior Manager Gemma Hyslop in 2023 Annual Report.
Fragomen news
Fragomen announces the launch of its Center for Strategy and Applied Insights and welcomes Senior Policy Advisor Amy Nice.
Media mentions
Manager Harry Goldstraw shares what UK employers need to consider when sending employees on short-term contracts to the European Union.
Blog post
This blog highlights the growing momentum of the UK's semiconductor sector, emphasising its strategic importance for the nation's science and technology ambitions, while also addressing upcoming challenges in talent acquisition due to proposed changes in immigration policies.
Blog post
This blog outlines key immigration and mobility impacts stemming from the 2024 Olympic and Paralympic Games in Paris.
Media mentions
Senior Managerin Katharina Vorländer und Managerin Dr. Adela Schmidt sprechen über die Bedeutung der Einstellung ausländischer Fachkräfte in Deutschland und die langfristige Sicherheit ihres Aufenthaltsstatus.
Blog post
This blog discusses the impacts of the UK's new salary thresholds for Skilled Workers on the country's technology sector.
Podcast
El director Miguel Jiménéz y el Senior Business Immigration Manager Rodrigo García analizan la nacionalidad y naturalización mexicana.
Blog post
Practice Leader of Sub-Saharan Africa Lunga Mani discusses South Africa's Trusted Employer Scheme and how complying member companies can benefit from a streamlined immigration process.
Blog post
This blog outlines the key immigration and corporate considerations that companies should keep in mind when closing in the UAE.
Blog post
Fragomen's Alfred Chong, Raga Rasuanta and Sofea Aiman discuss how Indonesia's 2024 election results could impact the country's immigration policies.
Blog post
This blog discusses the recent Statement of Changes to the UK immigration rules and its impacts.
Media mentions
International Institute of Humanitarian Law’s Department of International Refugee Law and Migration Law featured Fragomen and Senior Manager Gemma Hyslop in 2023 Annual Report.