2014-Aug 15:Recruitment Companies

Visa Pak 175: Clarification for Immigration Officers regarding the processing of Work Visa applications and what is and is not acceptable in employment agreements.

Visa Paks

15 August 2014

Recruitment Companies

There has been recent media coverage of the role played by recruitment companies, especially in relation to the Canterbury rebuild. This advice provides guidance on assessing work visa applications where the applicants’ employers are recruitment companies. It includes clarification on what is and is not acceptable in employment agreements.

Recruitment companies rely on being contracted by other companies or individuals for their services. If they are not contracted, recruitment companies may be unable to provide work for their employees. This is generally reflected in their employment agreements.

Such employment agreements allow for variances, and meet employment law, but do not meet immigration instructions.

This advice focuses primarily on employment agreements, but also covers other issues associated with recruitment companies.

The advice is general, and applies to all employers, but it is especially relevant to recruitment companies.

Action

When processing work visa applications, Immigration Officers must ensure that:

  • Employers are direct employers. Guidance on this can be found in instructions WK2(b).
  • Employers have good employment records. Verification may involve checking AMS, searching for media reports, and/or consulting with the Labour Inspectorate.
  • The risk of foreign workers being unable to leave New Zealand at the end of their stay is considered. A 90 day trial period, for example, may be considered to increase that risk. This risk may be managed by requesting one of the following as per instructions W2.20(a):
    • Travel tickets.
    • Written confirmation from an airline or travel agency that onward travel has been booked and paid for.
    • That the applicant be sponsored.
    • A written guarantee of repatriation from the New Zealand employer.
  • Offers of employment are genuine and sustainable, meeting instructions W2.10.10. This is of particular concern when employers are new companies. Verification may involve checking that employers appear on the New Zealand Companies Register, or requesting documents such as annual reports, sets of accounts certified by an accountant, or IRD records.
  • Employment agreements are clear, and that there is no ambiguity.
  • Any concerns related to employment agreements are remedied by way of new, signed employment agreements. Addendums to existing employment agreements cannot be accepted.
  • Employment agreements meet immigration instructions. In particular, Immigration Officers need to be vigilant when checking:
    • That the rate of pay is at least Minimum Wage.
    • That there is a guarantee of 30 hours’ paid work per week (an average of 30 hours a week is not acceptable). Clauses that allow for hours to vary can only be accepted when there is a guarantee that the varied hours will not be less than 30 hours.
    • Employment agreements contain all of the clauses required by law.