How we define franchisees and controlling third parties

If we define your business as a franchisee or one that places migrants with controlling third parties you have extra requirements before you can hire on the Accredited Employer Work Visa (AEWV).

What a franchisee employer is

Franchisee accreditation closing 16 June 2024

Applications for franchisee accreditation will close on 16 June 2024. Employers will be able to apply for standard, high-volume or controlling third party accreditation from 16 June 2024.

If an employer has a franchisee accreditation or a franchisee application waiting to be processed they can continue to hold this accreditation type after 16 June 2024. They will be able to change accreditation type when they apply to renew their accreditation from 16 June 2024. They must continue to meet the franchisee obligations and requirements while they hold this accreditation.

A business is considered a franchisee employer if:

  • they have bought the right to use a pre-existing business system authorised by a third party business
  • their business uses a brand, trade mark, advertising, marketing channels, or a commercial symbol owned by that third party, and
  • that third party business controls certain activities or structures within their business as set out through an agreement, operational guideline or a terms and conditions document.

These activities or structures may cover at least one or all of the following features:

  • continuing financial performance or reporting obligations to the third party
  • paying the third party a fee, or part of the profits from the business for the rights to use a brand or name
  • control imposed by the third party over where the business can source goods and services or how to set up or run their business, or
  • restricted ability to refuse requests by the third party, raise concerns or complaints regarding the third party, or lack of ability to easily exit or terminate the agreement.

Employers meeting this definition must apply for accreditation under the franchisee category.

What a controlling third party is

A controlling third party:

  • is a separate legal entity to the direct employer named on the worker's employment agreement
  • has an arrangement or contract with the employer allowing its employees to perform work for the benefit of the controlling third party, and
  • can direct or control those employees as if the controlling third party was the direct employer.

Examples of employers who place people with controlling third parties include:

  • labour hire companies
  • employers who send migrant employees on secondment to a controlling third party
  • parent or umbrella companies placing their migrant workers with a third party, like a subsidiary company or branch that is a separate legal entity.

It is your responsibility to tell us which accreditation covers your business.

Controlling third party | New Zealand Legislation

Help for employers

The employer line is open between 8am and 6pm, Monday to Friday. Call toll-free from NZ landlines only:
0508 967 569