New Zealand

Immigration lawyer Harris Gu says the new Accredited Employer Work Visa scheme is a breeding ground for employment exploitation. Photo / Sylvie Whinray

An employment visa scheme created to combat migrant exploitation is instead turning into a breeding ground for employment exploitation, an immigration lawyer says.

Under the Accredited Employer Work Visa scheme, accredited employers are exempt from paying the median wage and some are asking existing staff to take a pay cut to match the lower salaries of foreign labour they now have access to.

Immigration lawyer Harris Gu said he was aware of employers who were considering laying off staff unless they agreed to the wage reduction.

“The policy is a breeding ground for employment exploitation,” Gu said.

An Auckland restaurant worker, who spoke on the condition of anonymity and that her employer wasn’t approached, said she was currently on $28.50 an hour but had been asked to sign a new contract for $24.

The minimum wage in New Zealand is $21.20, but the median wage under the immigration system is currently $27.76 an hour.

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Under the new accredited employer scheme, employers in some sectors, including hospitality, tourism, construction and the care workforce, can pay staff below the median wage.

Gu, a solicitor at Queen City Law, said employers were usually well aware of their obligations under employment law but were still willing to take the risk in cutting wages of existing staff.

“The...

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