Changes to Open Work Visa Employment Conditions – What You Need to Know

Immigration New Zealand has announced changes to employment conditions for open work visa holders, effective from 20 April 2026.

 While described as a clarification, these changes also introduce clearer distinctions between different types of open work visas. Employers and migrants should understand how these distinctions may affect them.

Two Types of Employment Conditions

 From 20 April 2026, open work visas will fall into one of two categories:

1. Open work visas allowing any work
   These visa holders may:
   • Work for any employer
   • Sole trade
   • Own and operate a business

This includes certain partner visas and Post Study Work Visas.

2. Open work visas requiring work for an employer
These visa holders:
• Must work for an employer under an employment agreement or contract for services
• Cannot operate a business

This includes working holiday visas and certain protection-related visas.

Important: All open work visa holders are prohibited from employing other people, directly or indirectly, through a business they operate.

Why This Matters

Historically, the term “open” has led many to assume unrestricted commercial freedom. That has not always been the case.

With increased use of contracting, project work, and sole trader arrangements, the lack of clear distinctions created compliance risks. INZ has now formalised those boundaries.

Implications for Employers

 Employers should not assume all open work visas carry identical rights.

Before engaging a visa holder in contracting or business-related activity, it is essential to confirm their specific visa conditions.

Clearer rules reduce ambiguity, but they also reduce flexibility where conditions are now explicitly narrower.

Implications for Migrants

 Visa holders should carefully review their conditions, particularly if considering:

• Sole trading
• Owning or operating a business
• Contracting arrangements

Immigration compliance rests with the individual. Misunderstanding visa conditions can have long-term consequences for future applications.

Is Sole Trading a Viable Alternative?

Sole trading may work for individuals providing personal services, such as IT contractors or consultants.
However:
• You cannot employ staff
• You cannot scale into a larger enterprise
• You must comply with tax and business regulations

It is a limited flexibility mechanism, not a substitute for traditional employment in all cases.

Key Takeaway

“Open” does not mean unlimited.

These changes provide clarity, but they also reinforce defined boundaries. Both employers and migrants should review visa conditions carefully before making employment or business decisions.

For tailored advice on how these changes may affect you or your workforce, please contact our team.