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New work bill to impact on migrants

A new bill passed by the New Zealand government could have consequences for Skilled Migrants and those entering New Zealand under a Work Permit.

The Employment Relations Amendment Act provides businesses with the right to dismiss an employee within the first 90 days of employment without the employee having the right to lodge a complaint against the employer for unfair dismissal. While this is intended to balance the effects of the present economic environment on small businesses, it could have potentially detrimental consequences for migrants.

Mark Williams of Lane Neave Lawyers explains: "Concern has been raised that employers may use the legislation to dismiss an overseas migrant on minor performance related issues or if they simply change their mind if the migrant is having difficulty adjusting to the work place environment during the initial period of their employment."

He continues: "Difficulty will arise in the event the employer decides not to continue to offer employment to the migrant before residency is granted, or in the alternative before the employee has completed the three months of full-time employment following the grant of New Zealand residence that is required as per immigration regulations. The loss of a position could ultimately lead to not only the revocation of the migrant's work visa, but also the decline of the residence application. This (understandably) would create serious issues for migrants who are unlucky enough to find themselves already settled in New Zealand."

However, the legislation could also impact on migrant in a positive way. Many small businesses are currently reluctant to take the risk of hiring a migrant in case the arrangement fails; the new bill removes the risk of this arrangement.

"As a result of the legislation, it is possible that many New Zealand employers who are having difficulty recruiting may take a chance on a skilled migrant from overseas, knowing that if it does not work out well within 90 days they have an option to dismiss," says Williams.

Research shows that UK migrants find it easier to adjust and perform in New Zealand than many other nationalities, so in theory the new legislation should be a positive development for Brits.

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18 December 2008