The Accredited Employer Work Visa scheme may be enabling human trafficking, systemic exploitation and modern-day slavery, the Te Kāhui Tika Tangata Human Rights Commission’s Equal Employment Opportunities (EEO) Commissioner says.

The Commission today released a Human Rights Review of the Accredited Employer Work Visa (AEWV) scheme, setting out a range of urgent human rights concerns and recommendations to improve the scheme.

And Immigration Minister Erica Stanford has stated migrant exploitation was a “persistent issue” in New Zealand, and one the Government was “taking action to help address it”.

The AEWV scheme was introduced in May 2022 to streamline and speed up the work visa system by inviting employers wanting to hire overseas staff to apply for accreditation and operated on a “high trust” model.

Instead, it caused a surge in migrant exploitation, with migrants paying large sums of money in illegal premiums for jobs and positions that are often non-existent.

Under the scheme brought in by the previous Labour government after Covid-19 border closures led to worker shortage, skilled migrants can get a visa to come to Aotearoa to work for a specific accredited employer.

Migrants from South American countries paid thousands for promised job offers that turned out to be a lie. Photo / Alex Burton

Some workers told the Commission they had paid tens of thousands of dollars to recruitment agents but did not get the promised jobs, did not receive the hours or pay rate in their employment agreement, or were dismissed under dubious circumstances, said EEO Commissioner Saunoamaali’i Dr Karanina Sumeo.

“Workers who enter the country under the scheme and then lose their job are extremely vulnerable. Their visa being tied to a specific employer makes it hard for them to find legitimate work elsewhere, so they often end up taking unregulated, poorly paid work in the informal economy just to survive,” Sumeo said.

“What we heard goes beyond bad employer conduct and raises real concerns that the AEWV scheme may be enabling potential human trafficking, with signs of systemic migrant exploitation and modern slavery.”

Sumeo said the commission spoke with migrant workers, community and union advocates, immigration advisors and employers for the report and all had concerns about the persistent failings of the scheme, including that workers were being recruited to exploitative or non-existent jobs.

The Herald has reported numerous cases of fraud linked to AEWV scheme where migrants paid up to $30,000 for jobs that did not exist and were put into overcrowded and inhumane living conditions.

Participants in the report told the commission about being scammed out of tens of thousands of dollars by unethical recruiters, losing their job immediately on arrival and then working in the construction sector, often for free on “unpaid trials”.

Indian migrant workers who were scammed under the AEWV scheme. Photo / Alex Burton

They also obtained paid employment working long hours for well below the minimum wage

Many shared about having to live in crowded, unhealthy, unsafe housing or campgrounds, not having enough money for healthy food and being scared to raise breaches of minimum entitlements and fearing losing their employment and immigration status.

Workers described feeling bonded to their employer with one worker calling the visa their “handcuffs”.

Some said their families back in their home country were left in debt to pay the unethical recruiters and were threatened because they could not make the required repayments without the promised employment.

Many victims had not made complaints, expressing a lack of faith in authorities.

A Government-commissioned review of the scheme found it led migrants to be able to buy jobs but faced exploitation when they arrived. Some workers were not getting paid and ineligible employers were being granted accreditation.

Despite the review and changes announced in April, Sumeo said the commission was gravely concerned that migrant workers were continuing to experience human rights abuses.

“The independent operational review in February outlined many instances of migrant exploitation, including reports that migrant workers were being forced to work illegally as part of organised crime networks,” the commission said.

“However, the policy settings contributing to exploitation were not part of the review and the changes made in April did not address the underlying human rights risks.”

Sumeo said a review with a focus on Te Tiriti o Waitangi and human rights was needed to understand the root cause of the scheme’s flaws, which “does not appear to have meaningfully considered Te Tiriti obligations in its design”.

“We need significant policy changes to ensure that the AEWV scheme promotes positive human rights outcomes. The changes need to include an end to the tying of visas to a specific accredited employer,” Sumeo said.

“We also need an enforceable framework for ethical recruitment, meaningful business checks, and stronger mechanisms for remedying exploitation stemming from a systemic lack of protection.”

Sumeo said the commission would welcome the opportunity to support a review of the scheme that involves migrant workers, communities, unions, ethical immigration agents and members of the business community.

In a statement to the Herald, Stanford said migrant exploitation was “totally unacceptable”.

The Government was taking action to address it, with the minister saying recent changes to the “AEWV will help reduce the occurrence of and migrants’ vulnerability to exploitation”.

“These include the introduction of minimum English language requirements for lower-skilled roles and a minimum skills or experience threshold. These requirements ensure migrants can understand important things like employment rights and reduces the vulnerability to exploitation.

‘Settings under the previous Government that removed all checks and balances from the system contributed to migrant exploitation. For example, migrants were paying premiums for jobs that did not exist.”

Stanford said Immigration New Zealand was undertaking additional job check verification to ensure the jobs being recruited for were genuine.

“Since June, migrants applying for an AEWV have also been asked to declare they have not paid a premium for their visa. If a migrant believes they have been exploited, they can apply for a migrant exploitation protection visa which provides six months to find new employment.”

Work was progressing on the next phase of the review of the AEWV. That would include “targeted stakeholder consultation on potential changes” in September.

“MBIE is also working to respond to the Bestwick Review to improve the identification and management of migrant exploitation across the immigration system. I receive regular reports on progress and the implementation of the recommendations.”