Work Visas vs. Residence

In the world of New Zealand immigration, one of the most common points of confusion, and something we are asked about a lot more than we probably should be, is the difference between a work visa and residence. While it might appear obvious to some, for many applicants, the difference between these two visas and what they provide is not so clear and can lead to disappointment when one doesn’t necessarily turn in to the other. More importantly these two different visas are also interpreted very differently by applicants and employers alike. Employers tend to have a short-term view, focusing very closely on the ability for applicants to secure a work visa, so they can fill the vacancy, whereas applicants are usually always focused on the longer-term pathway to residence.

Understanding the difference between the two visas, is a key step for any potential applicant and also appreciating that a work visa doesn’t automatically lead to residence can be the difference between success and failure. However it is also important for employers to appreciate that for applicant’s there is often a much bigger plan in place than just the Work Visa, and there are many things that they can do to support that longer-term objective.

This weeks article is as much about the employer side of the equation as it is for applicants, however we will take a look at the key differences between these visas and then also how they are so closely linked together, and perhaps whether they need to be.

What’s The Difference?

Work visas are essentially a fixed term visa, allowing an applicant to work in New Zealand for a set period of time. The length of time they are valid for, depends largely on which work visa you apply for. There are a lot of different types of work visa, some of which offer open work rights (post-study work visas and those based on partnership) but for the purposes of this article, I am going to focus on those work visas that are employer supported - namely the Accredited Employer Work Visa (or AEWV for short).

Long & Short Term

Work Visas are often a part of the longer-term Residence process, but not the only thing required.

The AEWV is issued for between three and five years, depending on the nature of the job that underpins the visa, however that is the key - these visas require you to have an offer of employment, in New Zealand, with an accredited employer. The visas come with conditions that specify who you can work for (the employer), the occupation you can undertake and the location - they also determine your rate of pay and any other specific conditions tied to that role.

Work visas on their own do not automatically guarantee that someone will be granted residence, as applicants still need to qualify for that process separately, however some work visas holders, will have a pathway to residence based in part on that work visa being issued. For those on Tier 2 of the green list, working for two years on that work visa, in that specific role and meeting the specific requirements, will give them the ability to apply for residence. Other applicants may be able to qualify for residence under our points based, skilled migrant program and in that case, the work visa will give them the ability to accumulate the work experience they require for points. The key thing to understand however is that not all work visa holders will be eligible for residence and just having a job and a work visa, does not automatically qualify you.

Residence is of course the right to stay in NZ indefinitely and has no conditions attached to where you work, what you do, or whether you work at all. It entitles the holder to move about freely and to establish themselves in New Zealand over the very long-term. For most applicants, this is the end goal, because it gives them certainty and of course freedom. However to qualify for this, applicants either need to meet our straight to residence pathway (no work visa required at all in this scenario), or work here for a period of time, usually between one and three years (on that work visa) and then meet the specific criteria for residence either based on the green list or based on points. Again, the key factor here is that for these applicants residence is not automatically given, and has to be applied for separately using different criteria.

Unfortunately what we see all too often, is people who have been encouraged to come here, based on having secured a job offer and work visa, who then assume that they will eventually get residence simply because of those two things. They are then obviously very disappointed when they find out, that to qualify for residence, having a job and a work visa is part of the process, but not the entirety of it. This is why understanding that difference, might seem obvious, but is absolutely crucial.

Employers vs Applicants

Having a job offer is almost always a key component of a hopeful migrants plans to move here, however the importance of that job offer is viewed quite differently by the applicant taking it on and the employer offering it - particularly when it comes to the visa process. For the applicant, the job offer is a means to not only their financial existence in New Zealand, but also their gateway to the visa process. For some that job offer will give them a direct path to residence, for others it might mean a longer, work to residence pathway and for others, the job offer might not actually lead to residence at all. The simple fact is, you can secure a work visa for a job, almost any job, but not all of those jobs will qualify an applicant for residence.

Different Views

Employers and visa applicants see the world differently and often have very different objectives in the visa process.

However for employers, the job offer and then by extension the work visa is simply a means to meet a need, fill a vacancy and get a bum on a seat. Some employers do see the longer-term goal for residence, but by and large, employers tend to be focused on the immediate needs to fill a role and keep business moving forward.

Considering that AEWV’s tie an applicant to an employer this can often create tension, when the applicant is ultimately pursuing residence, but their employment may not let them achieve that. Equally where employers have a really good candidate on board, who they are supporting in the work visa process, it is not in their interests necessarily for that applicant to secure residence, giving them the freedom to then move, change jobs or become self-employed.

The Government has spent a considerable amount of time and energy in trying to stamp out migrant exploitation, but ironically why that exploitation is more likely to occur, is based on the fact that less honourable employers have work visa holders over a barrel (based on those visas tying the applicant to that employer).

For the most part, employers are actually very genuine in their intent and keen to support applicants, so the above exploitative practices are not the norm, however even the good employers often forget how their actions can prevent applicants from moving ahead with their longer term plans for residence.

• Employers forgetting to renew their accreditation - quite common and creates an issue when applicants want to apply for residence, where the employer needs to still be accredited, but they have let this lapse.

• Applicants fall foul of their pay or work conditions, through genuine mistakes, and often because employers have promoted them or changed their roles slightly without considering the visa implications.

• Failing to advise applicants to consider their chances for residence from the start. Many employers are keen to bring people onboard, but don’t often consider whether that applicant has a viable pathway to residence or not.

If all employers followed these very simple and easy steps, it would potentially create a lot of loyalty with their work visa holders, particularly those who can then go on to secure residence and potentially remain with that employer for far longer than their work visa would allow. Given work visas have a maximum period of five years before you have to leave for 12 months before coming back, having good quality candidates on a pathway to residence is actually a very positive thing.

Decoupling Work Visas?

The concept of decoupling work visas from employers has been floating around for quite some time and nothing has really come of it - I doubt the Government has much of an appetite to do this, given the very expensive investment made in to the IT system that delivers the accreditation and AEWV system. It wouldn’t however be too difficult to achieve something like this and it could potentially give applicants a bit more freedom to move about, placing a greater emphasis on employers to retrain their staff through good workplace practices.

Visa Conditions

AEWV’s come with conditions that tie the applicant to the employer, position and location.

A quick example could be to use the same process we currently have, in that applicants must still present a job offer with the work visa application, but once that visa is issued, it contains conditions that allow the applicant to take on a new job in the same industry and at the same pay rate (to ensure their is some consistency) should that first offer fall through. Provided the applicant continues to utilise their approved skills and be remunerated accordingly, then that would make some sense. You could also potentially extend this to applicants who are specifically on a work to residence pathway, e.g. those those that have the ability to apply for residence at some stage in the future, either through the green list or points, and not offer it to those that don’t.

This would then reinforce that for some applicants, the work visa they secure is all they will secure and they are here for a fixed timeframe, not indefinite. There are plenty of people who would happily take up that offer. However for those with a pathway to residence that ultimately we want to keep here, they are afforded some additional flexibility in their ability to do that, whilst not being directly shackled to one particular job.

It would also assist employers who often feel obligated to these applicants, even when the work simply no longer exists or their circumstances change and the role is no longer viable.

Something perhaps for this Government (or the next to consider) or another version of it at least, to help reinforce the difference between these two visas and the fact that not all work visas lead to residence.

Need Some Help?

If you are a hopeful applicant, looking to make the move, the first step is to establish whether or not securing a job here, is going to put you on that pathway to residence, either directly through our straight to residence offering, or indirectly through one of our work to residence options. If you are a fan of the social media groups, built by migrants, aiming to educate other hopeful migrants, then avoid the trap of “just come over and get a job, the rest will work itself out” - it doesnt.

Work visas and residence visas are both connected and disconnected - one often leads to the other, but it is not an automatic process. Understanding what you qualify for and how is absolutely crucial before you make this very significant move.

If you are an employer, considering the best way to manage your migrant workforce, then taking some time to understand the motivations for most applicants, being that they want to stay here longer term, is going to give you a significant advantage. Being able to guide those potential candidates towards someone who can clarify their options and give them a long-term plan will earn you significant loyalty. Remember also, that as part of keeping them onboard, you have some obligations to meet (complying with and keeping your accreditation updated is a good start).

Having someone available who can package this up for both employers and candidate, is also a useful tool and something our team is very good at doing, having worked with employers and candidates for many years. Usually when we have applicants or employers approach us in respect of the work visa process, we are also considering the longer-term goals for residence as well and advising accordingly.

This can be very helpful, given visa rules can and do change and for both employers and applicants, knowing where they stand now, and also in the future makes for a far better, long-term relationship.

Until next week…