•
informal workers and businesses do not pay
income taxes or contribute to social security
schemes98
•
lack of pre-determined hours, temporary
nature of work and lack of long-term job
security.99
One worker, who had arrived to a non-existent
job, sought other work and described their visa
as “my handcuffs”. Workers are often desperate
to earn money to meet their basic needs and are
often in debt from recruitment costs. Workers
we spoke to reported great difficulty getting a
new employer to offer employment that would
allow them to apply for a job change under
their visa. Workers often resort to informal
employment under precarious circumstances.
One worker explained they worked for free on
‘unpaid trials’ in the construction sector in hopes
of securing regular, paid work. They accepted
insecure work without employment agreements,
with ill-defined hours of work and rates of pay,
including periods of no pay. They worked long
hours for $500 per week, well below minimum
wage, and did not receive holiday pay.
A large, accredited employer described a climate
of competition within the construction sector.
They reported that tied visas addressed the
interest of ensuring that workers would not be
poached by competitors. This employer paid for
the recruitment costs of around $10,000. They
felt that the tied visa provided security that the
worker could not leave their company even if
they were offered a higher payrate once in the
country.
These concerns were also echoed by the ILO in
its 2023 ‘Guidance note: Wage protection for
migrant workers’ which sets out that:
“Labour migration governance regimes that
impose employment restrictions on workers can
increase vulnerability. For example, workers on
employer-sponsored visas, which tie a worker to
a specific employer, may be reluctant to complain
about wage issues, as this could result in the
loss of their employment and residence in the
country of destination.”100
The New Zealand Productivity Commission’s
2022 report ‘Immigration – Fit for the future’
stated that, for a migrant, a tied visa “raises the
risk of their exploitation.”101 The Productivity
Commission noted other negative economic
effects of restricting labour mobility, including
that it can drive down wages and conditions for
migrants and non-migrant workers.102 The report
further noted that tied visas enable gaming of the
system whereby “an employer could agree with a
prospective migrant to an employer sponsorship
so the migrant can migrate to New Zealand but
without intending that the migrant remain in that
employment relationship.”103
Problem: Tying of visas to a specific employer
exaggerates power imbalance, is a serious
human rights risk to workers, and is a primary
system fault in facilitating migrant exploitation.
Recommendations:
Government: End tying of visas to a specific
named employer. The tying increases the risk of
human right abuses (See section 2.2.1 on pg 9).
Concerns about adverse human rights impacts
of tied visas are a common theme when
speaking with migrant community stakeholders
and in discussion with migrant worker
advocates including their unions.
98
Ibid, paragraph [17].
99
Ibid, paragraph [18]
100
22
101
Productivity Commission, ‘Immigration – Fit for the future’ report, p55. https://www.treasury.govt.nz/sites/default/files/2024-05/
pc-inq-is-immigration-fit-for-the-future.pdf.
102
Ibid p56.
103
Ibid p57.
The Accredited Employer Work Visa (AEWV) scheme in Aotearoa New Zealand: A Human Rights Review