Date announced on visa changes for franchisees

Immigration New Zealand has announced that that the changes for franchisee AEWV accreditation will be effective from 16 June. In a statement, the Ministry has accepted that '... there is no compelling evidence to suggest franchisee employers are more likely to be non-compliant and in need of additional accreditation requirements.'

The news has been welcomed by the Franchise Association of New Zealand, which was advised by the Ministry earlier today.

The change brings to an end the discrimination against franchisees which had been in place since July 2022. This created issues for anyone buying an existing franchised operation because they had to wait 12 months to acquire Accredited Employer accreditation, making it impossible to retain existing staff. That also made it more difficult for franchisees wishing to sell to find buyers. Another impact of the policy was that franchisees had to pay up to five times the cost to employ the same employees as independently-owned businesses. The policy was originally due to be reviewed in mid-2023, but this was delayed.

The Minister of Immigration signalled in April that the franchisee accreditation category will be disestablished this year following Cabinet decisions. Today's information from the Customer Division, Immigration New Zealand Ministry of Business, Innovation & Employment, states:

• We can now confirm that the franchisee accreditation category will be no longer be available from 16 June 2024.
• Franchisee employers will instead be able to apply for and hold either standard, high-volume, or triangular employment accreditation, depending on their circumstances.
• This change will reduce costs for franchisee employers and put them on an even footing with other businesses operating in the same industry.
• The accreditation of current franchisee employers or employers who apply for franchisee accreditation before 16 June 2024 will not be impacted.
• If you are a franchisee employer looking to apply for accreditation or you currently hold franchisee accreditation, you do not need to act now. You will be able to apply for another accreditation type of your choosing after 16 June 2024. We recommend you wait until this change takes effect otherwise you will need to meet existing franchisee accreditation requirements and pay the franchise accreditation fee.
• Current accredited employers should ensure they apply for renewal before the expiry of their current accreditation. In most cases an interim accreditation will be granted if your renewal application is not decided before the expiry of your current accreditation.

The Franchise Association will be hosting an online session for members at 2pm on 28 May in which lawyer Nicola Tiffen of Duncan Cotterill will be taking a closer look at this latest update and recent changes on AEWV for employers.

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