Accredited employers: Are you ready for July?

In May 2024, National Road Carriers Association5 MinutesBy James SmithJune 9, 2024

James Smith, GM policy and advocacy, National Road Carriers Association, discusses what accredited employers need to demonstrate to meet Immigration New Zealand requirements.

As our workforce ages (the average age of Kiwi truck drivers is 59), an increasing number of employers have started sourcing staff from overseas. This became easier with the accredited employer programme in 2022 and then the sector agreement that allowed class 4 and 5 drivers a pathway to residency after two years.

Both policy shifts resulted in the surge of overseas workers who arrived in 2022 and 2023.

Many employers seized upon the opportunity to fill vacancies across all parts of their businesses where there was no local supply of skilled workers.

While the current economic situation has eased the pressure with more staff looking for jobs, we know that when the economy lifts, the skill shortage will return, and due to the ageing domestic workforce, it is likely to be more acute than before the slowdown.

On 1 July, the first wave of visas issued to overseas workers will expire, as will the expiry of many employer accreditations.

If you are an accredited employer or if you employ staff in New Zealand on a work visa, you need to take action as soon as possible to ensure this continues smoothly.

Immigration New Zealand will not just roll over accreditation. Employers will need to demonstrate they meet the requirements. There has been exploitation and it is also clear many employers did not fully understand their ongoing obligations or the obligations of their workers should they wish to stay in New Zealand. It is acknowledged that the process of reopening New Zealand was rushed through to address the demands from businesses that were constrained by a lack of staff.

Accredited employers will need to demonstrate:

  • Your business has not made a loss over the past two years.
  • Your business has had a positive cashflow each month for the past six months.
  • Your business has enough capital or external investment to remain viable.
  • Your business has a credible two-year plan to ensure it remains viable – for example, a revenue forecast or cashflow projection.
  • Your business must also comply with New Zealand immigration law, employment and business standards.
  • You and any key people in your organisation cannot be on the Labour Inspectorate’s stand-down list or permanently banned from hiring migrants.

You will also need to demonstrate you are a reasonable employer and have processes to ensure all workers comply with the conditions on their visas.

If you have employed under the sector agreement that leads to residency for class 4 and 5 drivers, you must prove you are meeting the minimum hourly rate of pay and the employee is meeting their requirements.

Do not wait until July to get this review process underway because, if you have gaps, you will not have time to rectify them before your accreditation expires. If your accreditation expires, any workers you employ will have to leave your business upon the expiry of their visas.

Self-assessment tools are available on the Immigration New Zealand website, or if you think you may have a challenge, reach out to one of the NRC team who can put you in touch with an immigration specialist who understands transport.

Now, while the economy is soft, is an opportunity to review whether you have the right people in your business and access to the right skill sets for when the economy recovers and the workload increases.

National Road Carriers has access to experts in this specialised field, so if you feel something may trip you up, or if you require more information, contact one of our team as soon as possible so we can either answer the question directly or put you in touch with someone who can.