RSE changes from 2 September 2024
Initial improvements have been made to the Recognised Seasonal Employer (RSE) scheme. Learn more about what these changes mean for RSE employers and workers.
Overview and background
The Government have introduced changes to the RSE that can be delivered quickly to support the growth of New Zealand’s horticulture and viticulture industries. These changes will help reduce costs and compliance needs for employers. They will also benefit RSE workers. They are initial changes in response to the policy review work carried out in 2023.
These changes took effect on 2 September 2024. Work will begin on further changes to the RSE scheme later in 2024.
Changes for RSE employers
RSE cap
The RSE cap has increased to 20,750 for 2024/2025. This is an increase of 1,250 workers.
If you requested an increase in the May 2024 RSE employer allocation survey, an RSE engagement partner will contact you with further information about this change.
30-hour minimum weekly work requirement
Employers are now able to average out the 30-hour minimum weekly work requirement over 4 weeks.
RSE workers must currently be paid a minimum of 30 hours per week. Employers have raised concerns that factors like weather can cause weekly fluctuations in the availability of work, meaning they may pay for hours which are not worked under current rules.
This change means employers (including joint ATR employers) are able to average out the 30-hour requirement across a 4-week period. If an employer cannot provide the required 120 hours of work over the 4-week period, they will need to top up the worker’s pay to meet this amount.
RSE wage requirements
Employers must pay RSE workers at least NZD$25.47 (10 percent above the minimum wage) if they are returning for their third or subsequent seasons. All other workers must be paid, at least the New Zealand minimum wage.
Accommodation costs
The pause on accommodation cost increases is lifted and employers are now able to apply a temporary increase.
Employers can increase weekly accommodation costs (covering both rent and utilities) for RSE workers by either 15 percent or NZD$15.00, whichever is less, for 12 months.
Accommodation deductions must still be for actual, reasonable, and verifiable expenses.
If you offered workers an agreement about the costs of accommodation before 2 September 2024, you cannot increase their weekly accommodation costs. The Residential Tenancies Act 1986 does not allow rent increases within 12 months.
MBIE will work with stakeholders over the longer term to develop a more permanent, comprehensive method of determining accommodation costs.
Moving between employers or regions
The flexibility for RSE workers to move between employers and regions has been increased as part of these changes.
The current grace period for the movement of workers will be extended from 14 to 21 days either side of the worker’s move date, as approved on the ATR.
This increased flexibility applies to both joint ATRs and individual employers with multiple worksites, where movement between the worksites has been approved on the ATR.
Further opportunities to increase flexibility in the longer-term will be considered as part of the next phase of work to review the RSE scheme. This will include the approach to labour market testing to ensure that the ‘New Zealanders first’ principle of the RSE scheme is not undermined, worker welfare is protected and a graduated enforcement model introduced.
Inclusion of Timor-Leste
Timor-Leste will be added to the RSE scheme in the future.
Further work is needed over the next year to set up the systems and infrastructure so that Timor-Leste can participate in the scheme and worker recruitment can start. Employers cannot hire RSE workers from Timor-Leste yet. We will advise employers when recruitment arrangements can be commenced.
Changes for RSE workers
RSE workers eligible for multi-entry visas
RSE workers are able to leave and return to New Zealand during a season, as RSE workers are eligible for a multi-entry visa. This allows them to attend events at home such as funerals, without needing to apply for another visa.
RSE Workers are expected to cover the costs of temporary departures from New Zealand, including flights.
Training and skill development
As part of these changes, RSE workers may be able to study, train and develop skills, even if it is not directly related to their role. Training does not have to take place through industry training organisations.
RSE workers must continue to meet the requirements of their employment agreement while taking part in any study or training.
HIV screening requirements
RSE workers no longer need to be screened for HIV.
HIV was removed from the list of medical conditions likely to impose significant costs and demands on New Zealand’s health services in 2021. This change brings the RSE visa into line with other visas.
Next steps for RSE employers
What you need to do as an RSE employer in response to these changes may be different, depending on where you are in the ATR process.
| Stage | Date submitted | What policy applies | What action to take |
|---|---|---|---|
| ATR | Submitted or approved before 2 September 2024 |
The existing policy applies. If you have not offered the employment agreement submitted with your ATR to workers and you wish to update it in line with the new policy, you can submit a 'Variation of Agreement to Recruit' form to the RSE Unit for approval. The form will only allow you to update:
|
To use the new policy, we will provide a 'Variation of Agreement to Recruit' form. You will need to: 1. Submit this form to the RSE Unit via email, with the subject line “Variation of Agreement to Recruit” to RSEUnit@mbie.govt.nz. 2. The RSE Unit will then consider and decide your request, in the order received. 3. If the Variation of Agreement to Recruit is approved, you can offer an updated employment agreement to workers. Decisions on variations of agreements to recruit will be made from 2 September 2024. |
| N/A | Submitted on or after 2 September 2024 | The new policy applies. |
Your employment agreement submitted to the RSE Unit can include clauses that reflect the new policy. Variation of Agreement to Recruit forms will no longer be required. |
| RSE Limited Visa | Submitted or approved before 2 September 2024 | The existing policy applies. |
You must honour existing employment agreements for 2024/25. No changes are permitted, from the employment agreement approved in your ATR, unless they are more beneficial to workers. |
| RSE Limited Visa | Submitted on or after 2 September 2024 | Employment contract not yet offered to workers. |
New policy: You can offer employment agreements in line with your ATR under the new policy, provided you have approval from the RSE Unit. However, if you have already offered an employment agreement using the old policy to the worker, you must honour the employment agreement terms and conditions. |
Variation of Agreement to Recruit
Variation of Agreement to Recruit (INZ 1388) PDF 382KB
Tips to avoid processing delays for your ATR
- Use the correct application form. If you use an incorrect application form this will delay your application.
- Self-audit all your intended accommodation every 12 months. Ensure all accommodation documentation is sent directly to the Labour Inspectorate at LIRSEemployerqueries@mbie.govt.nz before your ATR is submitted.
- Ensure that deduction consent forms are specific to the group of workers and clear and concise with specific amounts and weekly instalments.
ATR applications are decided in the order received, and are not prioritised based on worker arrival dates.
Tips to avoid processing delays for RSE Limited Work Visas
- Use the correct application form. If you use an incorrect application form this will delay your application.
- Allow at least 5 working days for RSE Limited Work Visas to be processed, from the date we receive the application.
- Include all relevant information with your application form.
- The updated RSE Limited Work Visa form has a new question to clarify how many RSE seasons you have spent in New Zealand. This is so we can confirm if you are eligible for a higher hourly pay rate.
- Ensure you include 2 passport sized photographs with your application.
RSE Limited Work Visa applications are decided in the order received, and are not prioritised based on flight dates.
If you have further questions
If you have any further questions about these changes you can contact your RSE Engagement Partner, or contact our Customer Service Centre.