Labour Market Testing Introduced for 457 Visas from 23 November
By Mark Webster
Tuesday, 19 November 2013
The Government has sought to moderate the impact on Australian employers, and has consulted widely with industry prior to introduction of the new system.
Which occupations will be affected?Labour Market Testing will only be required for the following types of occupations:
- Trade occupations (ie requiring an apprenticeship or completion of the equivalent of an Australian Certificate IV)
- Technical occupations (ie requiring a Certificate IV)
The List of Occupations Requiring Labour Market Testing is available on our website.
Which occupations are exempted?Labour Market Testing will NOT be required for:
- Most Management Positions
- Most Professional Occupations
- Most Associate Professional Positions (requiring a diploma level qualification)
Other Exemptions to Labour Market TestingEven if the occupation is on the LMT list, exemptions from labour market testing apply where:
- The applicant is a citizen of Chile or Thailand, or a citizen or permanent resident of New Zealand;
- Where the employee already works for an associated entity of the sponsor in Chile, New Zealand or an ASEAN country (Brunei, Myanmar, Cambodia, Indonesia, Malaysia, Philippines, Singapore, Thailand or Vietnam);
- Where the employee has worked full time for the nominating business for the last 2 years;
- Where the business operates in a WTO member country and is seeking to sponsor senior management staff to work in Australia; or
- Where workers are required to respond to a major disaster
How Must Labour Market Testing Be Conducted?If required, Labour Market Testing will in general involve advertising the position and indicating why no suitable applicants were found from the Australian labour pool.
Alternatively, employers can provide:
- Labour Market Research;
- Support letters from government employment agencies; or
- Details of the business participating in job and career expos
Labour Market Testing must have been done for the occupation at some stage in the 12 months prior to application. However, if staff have been made redundant in the occupation within the last 4 months, Labour Market Testing must be done after the redundancies have occurred.
Information provided in a Department of Immigration FAQ sheet indicates that advertising of positions via social media, company websites and other free means are perfectly acceptable ways to meet the Labour Market Testing requirement.
ConclusionThe impact of Labour Market Testing will be limited to selected occupations only. Employers sponsoring for 457 visas in most occupations will not be affected.
There are also generous exemptions for transfers of employees from subsidiaries in the Asia-Pacific region.
For employers who do not fall within one of the above exemptions, Labour Market Testing will involve an extra administrative step which could cause delay and additional expense in obtaining the necessary 457 visa.
Please contact us if you would like to discuss how the new labour market testing requirement will affect your business.