Immigration and general employment law updates

Presenting at PlaceMakers LBP Seminar in Mount Wellington on 19 June, Duncan Cotterill Senior Associate Joe Williams discussed recent employment and immigration law updates 

The Accredited Employer Work Visa (AEWV) has undergone changes, which businesses that employ migrants need to be aware of. In summary: 

• The median wage threshold (previously $29.66 per hour for AEWV applications) has been removed. 

• Requirement for employers and employees to complete Employment New Zealand online modules has been removed. 

• Some positions are now classed as a higher skill level under the Australian and New Zealand Standard Classification of Occupations (ANZSCO). 

• Employers no longer need to prove engagement with Work and Income. 

• The minimum skills threshold for an AEWV application has decreased from three years to two. 

• The minimum AEWV duration has been made much clearer. 

Partner work rights 

Partners of AEWV or Essential Skills Work Visa holders can now apply for open work rights. Partners are eligible for an open work visa if their supporting partner meets the following criteria: 

• Works in a role classed as skill level 1-3 and is paid at least $25.29 per hour; or 

• Is paid at least $50.34 per hour; or 

• Is paid at least $33.56 and works in a Green List role (and meets Green List requirements); or 

• Is in acceptable employment under the Transport or Care Workforce Sector to Residence policies, and paid at least $26.85 per hour, and has worked in this occupation for 24 or more months in New Zealand. 

General employment law updates 

Employees earning $180,000 or more annually (base salary only) can no longer raise unjustified dismissal claims. However, they may still: 

• Raise other personal grievances, statutory or contractual claims. 

• Opt back into dismissal protection by negotiating customised dismissal procedures. 

This threshold will be reviewed annually and doesn’t include incentives, benefits or allowances. It does not adjust for part-time work. 

Remedies and employee conduct 

The Employment Relations Act update will now consider employee behaviour when awarding remedies: 

• No remedies if serious misconduct is proven. 

• No reinstatement or compensation where there is contributory behaviour. 

• Contributory behaviour can range from minor issues (eg, under performance) to serious misconduct (eg, theft, fraud). 

Pre-termination negotiations 

A Members’ Bill by ACT MP Laura McClure proposes allowing protected, written negotiations to end employment – without requiring an existing dispute. 

For agreements to be enforceable, they must: 

• Be in writing and signed. 

• Reference the legislation. 

• Provide the employee with a chance to seek legal advice. 

• Offer a reasonable timeframe to consider the agreement. 

Contractor classification: new gateway test 

A new test will help determine if a worker is a contractor or employee. Conditions include: 

• A written agreement must state the worker is an independent contractor. 

• The business must not restrict them from working for others (including competitors). 

• The business must not require them to work set hours – unless the worker can sub-contract. 

• The contract must not be terminated for declining extra work. 

Union rules 

Currently, new employees under a collective agreement must have terms aligned for their first 30 days. Proposed changes by the end of 2025 aim to: 

• Let employees negotiate broader employment terms. 

• Allow pay deductions during partial strikes – either proportionally or at 10%. 

Holidays Act reform 

Key proposals include: 

• Moving sick leave to a pro-rata basis for part-time workers. 

• Accruing annual leave (rather than after an anniversary date). 

• Simplifying the leave system overall. 

Updating employment contracts 

Employers should update contracts to reflect: 

• Trial periods: maximum 90 days for new employees only. 

• Extended grievance timeframes: 12 months for sexual harassment complaints. 

• Leave entitlements: 10 days each for sick leave and family violence leave, plus Matariki. 

• Flexible work requests: employees have a right to ask. 

• Break entitlements: paid rest and unpaid meal breaks. 

These updates bring significant changes across visas, grievances, employment types and leave entitlements. Employers should review existing contracts and workplace policies to ensure compliance – and seek advice where needed. 

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If you have any questions about this Bill, or about the retention money scheme generally, please contact a member of our Construction & Projects team (duncancotterill.com).  

Duncan Cotterill is a full-service law firm with offices in Auckland, Wellington, Nelson, Queenstown and Christchurch.  

Disclaimer: the content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.