Government announces fairer visa system for franchise businesses
The New Zealand government has announced changes to the Accredited Employer Work Visa (AEWV) scheme, bringing good news for franchise businesses. This move by Immigration Minister Erica Stanford allows franchise owners to hire migrant workers under the same system as other businesses.
This change is a significant cost saver for over 32,000 franchisees. They will no longer pay more for accreditation under the new AEWV scheme. Previously, franchisees faced fees up to five times higher compared to independent businesses to hire the same staff.
The new scheme also allows franchise owners to offer long-term job security to migrant employees under an Accredited Employer Work Visa. This removes the previous concern for new franchise owners who had to wait a year before acquiring accreditation, potentially losing existing staff during the wait. Franchise purchasers can now seamlessly apply for accreditation without the 12-month stand-down period.
The government’s decision will create a fairer system for franchise owners and reduce the vulnerability of migrants to exploitation.
Overall, these changes aim to:
- Attract and retain highly skilled migrants in areas where New Zealand faces a skills shortage.
- Prioritise New Zealand citizens for jobs where there are no skill shortages.
- Ensure a more balanced and efficient system for migrant workers in New Zealand.
The Franchise Association of New Zealand (FANZ) has welcomed the changes saying this is great news for everyone involved in franchising.
Considering employing someone?
Follow these three Essential Employer steps.
Before you proceed with any hiring decisions, there are three essential steps you must take into consideration:
1. Consultation
Discuss your plans with your Regional Master Franchise or Regional Manager. They will help you through the process and guide you to the relevant resources.
2. IRD Employer Registration and Permitted Employee Pack
If you are hiring for the first time, you’ll need to register your business as an employer with Inland Revenue Department (IRD).
Once your business is registered you can download the ‘Permitted Employee Application Pack’ from Team CrestClean. This pack contains all the forms required to register the employee as a ‘Permitted Employee’ to work on site.
Important: Your employee cannot start working on a customer site if they have not been issued their ID card by CrestClean Security.
3. Employment Support Service
Get in touch with CrestClean’s Employment Support team about any employment or payroll related queries. We can support you through the hiring process, understanding the different types of employment agreements and paying your employees.
The Employment Support team are more than happy to assist you with setting up your payroll with CrestClean’s approved payroll provider – Smartly.
Take Advice First
Holiday and leave calculations and employment obligations can be complex. We strongly recommend that you to seek advice before becoming an employer and adhere to these guidelines, as this ensures that you get all the necessary support for the employment process, safeguarding both your franchise and your employees.
Our Payroll Advisor, Shaid Ali, is available during office hours to assist you. Shaid is fluent in both English and Hindi/Fiji-Hindi, ensuring clear and effective communication. You can reach him at:
Direct Dial In (DDI): 03 471 7843
Email: shaid@crestclean.co.nz
Shared mailbox: employment@crestclean.co.nz
Non-Compliance
We cannot stress enough the importance of following the correct procedures. CrestClean will not tolerate breaches of employment laws or migrant exploitation. Non-compliance with minimum standards could put your franchise at risk of penalties, infringements or banning orders imposed by Employment Court or the Inland Revenue Department (IRD).
