New labour market testing requirements

 In Blog

Sponsors who are considering employing overseas skilled workers on a Subclass 457 (Temporary Work (Skilled)) visa, Subclass 482 (Temporary Skill Shortage) visa, or Subclass 494 (Skilled Employer Sponsored Regional (Provisional)) visa must be aware that new labour market testing requirements were introduced on 2 September 2020.

Labour market testing requirements have been enhanced to ensure that appropriately skilled Australian citizens and permanent residents are given work opportunities before overseas workers when a business nominates a vacancy.

The enhanced labour market testing requirements apply to nominations lodged on or after 1 October 2020.

The amendment will not affect nominations lodged before 1 October 2020, or nominations for a select occupation or a select position to which alternative evidence arrangements apply.

For all nomination applications lodged on or after 1 October 2020 sponsors must demonstrate that they advertised their vacancies on the Jobactive website (http://www.jobactive.gov.au) in addition to at least two other national reaching advertisements for positions throughout Australia.

Sponsors are reminded that applications for positions advertised on Jobactive must be able to be accepted for at least four weeks.

Nominations lodged on or after 1 October 2020, without evidence of a Jobactive advertisement that satisfies all existing labour market testing requirements, such as those in relation to position details and duration, cannot be approved.

There are no provisions that allow for refunds of the nomination fee or SAF levy where a nomination is refused or withdrawn due to failure to satisfy the LMT requirement.

Sponsors are also advised that the Australian Government has an expectation that positions will be advertised on Jobactive before seeking to nominate an overseas worker for a permanent employer sponsored visa (Subclass 186 or 187), in order to demonstrate that there is a genuine need for an overseas worker to fill that position. 

In addition, to ensure that job opportunities for Australian workers are being prioritised, the Department will be further scrutinising ENS and RSMS nominations in relation to Australian workers employed by the business in similar occupations, including:

  • retrenchments in the previous 12 months
  • reduction of hours worked during the previous 12 months
  • reduction in pay and conditions within the previous 12 months
  • employment of a temporary visa holder on conditions less favourable than Australians
  • recruitment of temporary visa holders beyond the ordinary scope of the business.

For questions about Australian visas and Immigration matters please contact a Registered Migration Agent Yana Asmalovskaya | Mobile: 0413392894 |  Email: yana@becomeaustralian.com

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