DOIA 2223 2893 Appendix 1 Care Workforce Sector Agreement Fact Sheet August 2022.pdf

Care Workforce Sector Agreement Fact Sheet
Why has the Government introduced sector agreements?
•  The sector agreement settings provide limited exemptions to the median wage
requirement for hiring migrant workers on an Accredited Employer Work Visa
(AEWV) in specific occupations and sectors, in exchange for ongoing
improvements.

•  This will allow sectors which have traditionally relied on lower-paid migrants time
to improve attraction and retention of domestic workers, put significant effort into
retaining, training, and upskilling New Zealanders, and invest in technology and
new business models where appropriate.

•  The sector agreement outlines the Government’s expectations for improvement,
and performance against these will influence future decisions around access to
immigration. The Minister of Immigration will write to sector bodies and unions
specifying these expectations.

•  These arrangements are not intended to fully resolve labour shortages, but to
provide sufficient support to sectors. Wider structural change and workforce
transition are the key mechanisms for addressing systemic shortages.

•  Stand down periods are in place for AEWV roles that are paid below the median
wage. If employers wish to continue hiring a migrant care worker previously on a
AEWV with a stand down, they need to support the worker to be trained (in
advance) to Level 4 and then paid at that rate

•  The sector agreement will come into effect on 31 October 2022 and be in place
until October 2024, with a possibility to renew beyond that date.
What are the final settings for the sector agreement?
The sector agreement will give access to migrant care workers through the AEWV at
Level 3 of the pay arrangement ($26.16), a two-year Work to Residence pathway for
migrant care workers at the Level 4 rate ($28.25), and a review in two years’ time.
What is the rationale for the wage threshold?
MBIE looked at wage data for work visa holders in these roles, consulted with relevant
government agencies on predicted sector impacts, and consulted with sector
representatives.

For the care workforce, the wage thresholds are based on pay rates for support
workers under pay equity legislation. The pay rates are different for each sector
because there are different labour market conditions in each.
These rates are the minimum threshold below which a migrant worker cannot be
recruited on an AEWV. Job offers for migrants should reflect the market rate for that
job.
Full Details:
Sector
Purpose
Duration
Number of
Occupations
Wage
Maximum visa
Other
migrant
included (ANZSCO)
threshold (per
durations and
settings
workers
hour)
stand downs
permitted
Care
Support the
2 years –
Uncapped
Aged and Disabled
$26.16
Up to 2 years at
Migrant
ending
Level 3 rate in
Workforce
increasing
Carers, Child or
(equivalent
care
October
the pay
need for
2024
Youth Residential
and indexed
arrangement
workers
care and
Care Assistant,
to the Level 3
paid at Level
support
This is an
Disabilities Services
rate in the pay
After two years a
4 rate
workers
initial period,
Officer, Diversional
legislation –
stand down
provided a
period will apply
given the
may be
Therapist,
however,
2-year work
and the migrant
ageing
renewed
Kaiāwhina (Hauora)
should this
won’t be able to
to residence
population
following a
(Māori Health
lapse and not
apply for
pathway,
as well as
review
Assistant), Nursing
be replaced,
another AEWV
beginning
need in
Support Worker,
the rate at
paying below
when they
the Level 4 rate
other
Personal Care
that time will
reach the
for at least 12
healthcare
Assistant,
be maintained
months.
Level 4 rate
contexts
Residential Care
and indexed

Officer, Therapy
to median

Aide
wage to

increase over
time)

What options do I have for how I recruit migrant labour?
For any role regardless of pay:
Migrants with open work visas (like students and Working Holiday Scheme
participants) will be able to work in any role for any pay rate above the minimum wage.
New Zealand based employers are still required to meet minimum wage requirements
and general employment law.

Why will the sector agreement be reviewed in two years? Is there a chance it
could be extended?
The duration is based on how long each sector is likely to need additional support in
this form to improve attraction improve attraction and retention of domestic workers, put
significant effort into retaining, training, and upskilling New Zealanders, and invest in
technology and new business models where appropriate.
Government agencies were consulted based on their knowledge of the labour outlook
in each sector and the status of Industry Transformation Plans and Workforce
Development Plans.
The Government wil  review each sector’s needs at the end of the agreement, and
consider whether the settings need to be updated, extended or ended.
Why are you applying a stand down period after two years if a care worker is still
at Level 3 at that time?
This stand down period will encourage care and support workers to be trained and for
pay rates to progress over time.
If employers wish to continue hiring a migrant worker previously on a AEWV with a
stand down, they could do so by training them to be a Level 4 role paid at the Level 4
rate which is currently $28.25.
Migrant stand down periods have been a part of immigration policy since 2017 and are
in place for AEWV roles that are paid below the median wage to support the
Government’s goal for employers to work towards the Government’s goal of a higher
skilled, higher paid migrant workforce.
It also makes it clear to potential migrant workers that they cannot work in New
Zealand in such a role for any longer than two years. This is important because there is
no pathway to residence for migrant workers with roles paying at this level. It also
incentivizes employers to reduce reliance on lower-skilled migrant labour, which will
only be temporary.
However, these migrants won’t have to leave the country if they obtain another AEWV
by securing another role that is paying the median wage or more, or they could apply
for another visa, like a student visa.
If employers wish to continue hiring a migrant worker previously on a AEWV with a
stand down, they could do so by recruiting them into a role paying at or above the
median wage.
The stand down period will not mean that partners of AEWV holders in roles earning
less than the median wage will need to leave the country after two years. They will be
able to stay in New Zealand on a visitor visa for the duration of their partner’s visa.

Further information on AEWV for employers:
Why we ask you to be accredited and do a job check
•  The process
•  Employer accreditation: check what you need and apply
o  Extra requirements for controlling third party accreditation
o  How we define franchisees and controlling third parties
•  Job check: check what you need
o  How we calculate pay rates for the Accredited Employer Work Visa
(AEWV)
o  Roles exempt from the AEWV median wage threshold
o  Green List occupations
•  Applying for the Accredited Employer Work Visa

Checklists and resources are also available to download from INZ website
•  Accreditation checklist (standard and high-volume)
•  Accreditation checklist (franchisee)
•  Accreditation checklist (employers who place AEWV holders with controlling
third parties)
•  Video: Overview of the AEWV process for employers
•  Video: Overview of the AEWV process for migrants
•  Infographic: 3-step process to hiring a migrant on an AEWV
•  Factsheet: AEWV information for employers
•  Factsheet: AEWV information for migrant workers
•  Guide: Job advertising guide for employers

Webinar recordings are available on the INZ Youtube channel:
•  Webinar – employer accreditation requirements (standard and high-volume) 13
April 2022
•  Webinar – employer accreditation requirements for franchisees and employers
wanting to place AEWV holders with controlling third parties 4 May 2022
•  Webinar – job check requirements and applying for the Accredited Employer
Work Visa 18 May 2022