Franchise type of accreditation no longer in place
As advised previously, the franchisee type of employer accreditation is now obsolete. Starting 16 June 2024, franchisees will be treated the same as other employers.
The rationale behind the change comes from the Ministry: "there is no compelling evidence to suggest franchisee employers are more likely to be non-compliant and in need of additional accreditation requirements."
This is a welcome change for franchisee businesses who felt discriminated against since the policy was implemented in July 2022. Policy made it difficult for newly-established franchises to secure accreditation, leading to difficulties to retain existing staff or hire new staff, and complicating the sale process for the franchise. Additionally, the cost discrepancy was such that it was five times more expensive for a franchisee to become accredited by Immigration New Zealand.
In April, the Minister of Immigration indicated that the franchisee accreditation category would be cancelled, following Cabinet decisions. As of 16 June 2024, franchisee employers can apply for standard, high-volume, or triangular employment accreditation, depending on their circumstances. This change will reduce costs for franchisee employers and level the playing field with other businesses in the industry. Any franchisee accreditation or application submitted before 16 June 2024 will be assessed under the current franchisee policy.
Franchisee employers are therefore advised to wait until after 16 June 2024 to apply for a new accreditation type to avoid meeting existing requirements and fees, though current accredited employers should apply for renewal before their current accreditation expires, with most receiving an interim accreditation if their renewal application is pending.
