New Zealand: Increased Enforcement of Employment Contract Rules

• Job Check applications. For Job Check applications (mandatory for accredited employers to verify that no suitable New Zealand citizens are eligible or available for a position before hiring a foreign national), INZ emphasized that an employment agreement template or a signed contract must be submitted (after the Labour Market Testing processing, where applicable).
• AEWV applications. According to the checklist, employers must submit a signed employment contract or agreement for AEWV applications.
• Employment agreement requirements. According to the checklist provided by INZ, the employment agreement for either Job Check applications or AEWV applications must:
  • • comply with all employment law requirements and include specific immigration-related provisions:
      • the employer’s name listed as the direct employer
      • job title and detailed job description
      • pay and other conditions
      • paid leave entitlements, deductions, benefits, and allowances
      • guaranteed hours (at least 30 hours of work per week), the required maximum working hours before overtime rates apply, and total work hours including overtime, wage rates, pay period (which cannot be longer than one month
      • terms and conditions for any travel or work that will take place at different locations, if applicable
    • clearly explain how employees can seek assistance in case of employment issues, including timelines for raising personal grievances (e.g., a statement that personal grievances must be raised within 90 days from the incident and that sexual harassment complaints must be raised within 12 months from the incident); 
    • not have any bonding clauses (a condition requiring an employee to pay the employer back some or all employment-related costs before being released from service), non-compliant provisions, or unlawful deductions; and
    • not have trial periods.
• Online service. Employers can use the government’s online employment agreement builder to draft their employment contract, though this program does not include immigration-specific requirements.

Employers must adhere to these rules for employment agreements to avoid queries and processing delays with Job Check or AEWV applications.

The AEWV is the main temporary work visa in New Zealand and it is designed to ensure that New Zealanders are first in line for jobs over foreign workers.

In early 2023, a Public Service Commission conducted an independent review of the AEWV due to concerns raised about the AEWV related to how the AEWV scheme was being administered by INZ, particularly at the first two parts of the process (Employer Accreditation and Job Check), which could potentially result in misuse and exploitation. The government made several changes to the AEWV scheme in early 2024 after the independent review and it is now further reinforcing the requirements to align with the changes.

These efforts to reinforce the requirements of both AEWV applications and employment agreements aim to ensure that the employment rights of foreign workers are protected and misuse is minimized while ensuring genuine skill shortages are addressed.

The government will likely continue to undertake reviews and introduce changes to align with evolving economic conditions and address the experiences of migrant workers, while safeguarding employment opportunities for New Zealand citizens, as part of its review of the AEWV program. We will report on related developments.