Farming, tourism and other businesses will be able to hold on to some overseas staff for longer after the Government announced changes to the visa process.  

From Monday, the maximum duration of Essential Skills visas, for jobs paid below the median wage of $27, will increase from one year to two years. 

That means at least 18,000 foreign workers will be able to stay in the country longer. 

The application process will also be simplified for workers remaining in their current jobs, with no labour market tests, medicals or police certificates needed.  

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The maximum duration of Essential Skills visas for jobs paid above the median wage will remain at three years.

Agriculture Minister, Damien O’Connor, said the changes acknowledged feedback he had been getting from the primary sector where employers were desperate to hang onto migrant staff, like dairy farm managers, who had often worked for the same employer for several years on an Essential Skills visa.

"I want to thank the farming leadership that has been working with the government on these changes," O'Connor said.

"This will provide welcome certainty for those farmers and farm workers, and adds to the recent border exception to bring in 200 migrant dairy farm workers and their families." 

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Federated Farmers Employment and Immigration spokesperson Chris Lewis said the organisation is pleased the Government has recognised the need to extend the Essential Skills visa for the dairy sector.

"These valued staff are offering just what their visa says, essential skills to the New Zealand dairy industry," Lewis said.

"Since the original lockdown Feds and Dairy NZ have been in constant contact with the Government explaining how important those valued staff on Essential Skills visas are to our industry. We need them helping with calving and putting cups on cows now more than ever with the border still closed and low domestic unemployment."

Lewis says alongside the current exception process for bringing new workers across the border, retaining existing staff has been the other key part of the message from Feds and Dairy NZ.

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"We don’t want these people taking their good skills and work habits and exiting the country because of visa uncertainty, and this is an important step to help keeping them here.

"We are doing what we can to attract Kiwis to the industry, but all provincial employers feel like they are fighting over the same scraps of the labour force pie at the moment."

A labour market test will still be required where employers are filling a job vacancy to prove there are no New Zealanders available before a migrant worker can be hired. This is in line with the Government’s objective to ensure Kiwis are prioritised for jobs.

Tourism Minister Stuart Nash said: "The Government is listening to business concerns.

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"COVID support previously rolled out to businesses has been designed to keep workers connected to employers and keep tourism businesses operating while international borders are closed. 

"The decision to extend Essential Skills visas and simplify application processes is the next step, and will be welcomed by sectors like tourism and hospitality where employers are keen to retain their current migrant workers."

Minister of Immigration Kris Faafoi said the Government recognises the ongoing labour demand pressures faced by some sectors and wants to make the most of people with skills already in the country. 

But, he says the visa changes will be temporary measures to support employers in the unique COVID-19 situation and were part of the Government’s ongoing review of border settings to balance New Zealand’s economic needs with the successful COVID health response that has kept the virus out of our communities.

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"Our long-term vision for immigration settings is to grow talent here in New Zealand and build a more self-reliant labour market," Faafoi said. 

"The Government's $320 million targeted investment for free trades training, which has helped just over 144,000 people into training in the past year, is part of that vision.

"We want to work with sectors and seem them develop plans to attract, train and upskill Kiwis into roles, and invest in productivity changes that can help them move away from a reliance on low-paid and low-skilled migrant workers. 

"Many sectors and employers are already looking at how to make those shifts as a result of COVID pressure on the supply of workers."

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Extending Essential Skills visas to last two years means the new Accredited Employer Work Visa, which was due to come into effect on 1 November, will be delayed until the middle of next year. An update will be provided as soon as an exact date is confirmed.

"The Government remains committed to the Accredited Employer Work Visa, which will ensure work visas issued reflect genuine regional skill shortages and strengthen labour market testing," Faafoi said. 

"However, we expect most Essential Skills visa holders will apply for this two-year visa, meaning the implementation of the Accredited Employer Work scheme would not be viable because of likely low uptake.

"Employers will be kept updated on any further changes and more detailed guidance on the new system ahead of the introduction of the Accredited Employer Work Visa next year."

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Federated Farmers Chris Lewis said that is also welcome.

"Farmers and their workers have got enough to worry about at the moment without getting their heads around this new visa system," Lewis said.

"We just want to get on with the business of farming and anything that helps ease the current labour woes is a good step, so Federated Farmers would like to thank the Government for listening to the concerns of our farmers on this one".

 Essential Skills visas are available to anyone who is offered full-time employment (30+ hours) in New Zealand and can meet other eligibility requirements. 

The majority of Essential Skills visa holders work in the service sector which includes tourism, hospitality and retail.