Migrants in New Zealand on student or work visas will probably find it harder to gain permanent residency under proposed law changes, a leading immigration lawyer says.

Aaron Martin of NZ Immigration Law believes the proposed changes to the Skilled Migrant Category (SMC) are a "done deal".

"The government is now set to pursue quality over quantity. These changes are going to make it more difficult for those who planned to secure residence after completing a course of study. From our research we estimate more than 27,000 migrants who are currently on the pathway towards trying to achieve residence will be affected."

Hospitality workers in tourism hotspots such as Queenstown, Christchurch and Auckland could also find their jobs excluded from the skilled category with the introduction of a new minimum salary/wage level.

The Ministry of Business, Innovation and Employment (MBIE) has just completed a public consultation on changes to the category that respond concerns that the current system does not effectively prioritise migrants with the highest skill levels. The proposed changes would:

- Introduce the use of salary levels to help define skilled employment 

- Strengthen the use of work experience to define skilled employment 

- Realign the points system to better recognise highly skilled migrants.

More than a third (35%) of current visa applications are lodged under the SMC category. The changes are likely to have a significant effect on migrants currently on student and work visas who are looking for permanent residency.

The issues faced under the current criteria

The rise in SMC migrants who work in lower-income occupations indicates that some jobs that meet the current definition of "skilled work" may not in fact be highly skilled.

In particular, it is not easy to differentiate between senior and junior roles (particularly in managerial positions).

There have also been examples of migrant workers in highly paid positions unable to use SMC because their job description matches a "low-skilled" occupation under the current criteria.

"With the old process, migrants could get a post-study work visa that led to ‘promotion’ into a role that was claimed to be skilled employment," says Martin. "With the proposed stricter rules on what will count as post-study work experience, this may cease to be a viable avenue. I expect international students will be most affected by these changes. My advice to people on work visas or student visas is to find out now whether they will be eligible, before the law changes."

What the proposed changes look like:

1) Salary levels to help define skilled employment

Currently, in order to claim points for skilled employment, applicants must have a job (or job offer) in an occupation at ANZSCO level 1, 2, or 3. The proposed changes introduce an additional requirement of a minimum salary/wage level.

The suggested minimum salary range is $46,000 to $57,000. This would exclude migrants in lower-income jobs from being able to apply for residency. This change would mostly affect restaurant workers in areas such as Queenstown, Christchurch, and Auckland, and many in the retail sector.

2) Minimum number of years of relevant work experience

Proposed changes would mean applicants need to have a minimum of three years of recognised work experience relevant to their job (or job offer). This would apply regardless of whether they hold a formal qualification.

What this means

Someone working as a baker (ANZSCO skill level 3) can currently claim points for skilled employment as long as they have either

- a relevant recognised Level 4 Certificate OR

- at least three years of relevant recognised work experience.

Under the proposed changes, they would need to have at least three years of work experience relevant to their employment as a baker in order to claim the points for skilled employment, even if they also have a Level 4 Certificate.

3) Realigning the points system to better recognise highly skilled migrants

The following changes to the points system are proposed:

- Focus the points system more on skilled work experience, 

- Remove bonus points that do not have a strong association with migrant labour market outcomes, 

- Reduce the points available for work experience in New Zealand (including removing extra ‘skilled employment’ points for ongoing employment of 12 months or longer in New Zealand)

What this means

Under the proposed changes, skilled work experience and higher-level qualifications would be given greater preference in the points system.

Once the new points system is in place, a new points selection level (currently 160 points) would need to be set.

Submissions to the proposal closed on the 30th of October and are currently under review by the government.

Once the changes are made they are likely to be of immediate affect to all applications filed from that date forward.

ENDS