According to November 2016 data from the Australian Bureau of Statistics, of the 1.7 million recent migrants and temporary residents in Australia, 65 percent are employed –  that’s roughly one million people.

On these figures, employment of migrants by Australian organisations involves many employers and a staggering amount of regulation. A lot of that employment happened through the 457 visa system. With the 457 visa now abolished and replaced by the Temporary Skill Shortage (TSS), visa (Subclass 482), active employers and applicants must try to find ways for employers to be able to recruit the employees that they need even if the occupation has been cut from the DoHA lists for temporary or permanent resident purposes.

Occupations that have been cut 

Since the changes were announced last year by PM Malcolm Turnbull, over 200 trades have been cut from the various lists of professions from which employers can select migrant workers.

The remaining occupations have been divided into a Short-term Skilled Occupations List (STSOL) and a Medium and Long-term Strategic Skills List (MLTSSL).

 Applicants who find their occupation on the STSOL will not be eligible for permanent residency, however, their employers could become part of a Labour Agreement that has specific “pathway to Australian permanent residency” clauses. 

What is a Labour Agreement – published by DoHA

• A Labour Agreement is a formal arrangement negotiated between an employer and the Australian Government and will only be considered where a genuine skills shortage exists, and there are no suitably qualified or experienced Australians readily available.
• A Labour Agreement allows an employer to recruit skilled overseas workers for occupations approved under the agreement. The employer must be able to demonstrate, among other things, that it has genuinely attempted to hire Australian workers for the positions and that there are no appropriately qualified Australian workers. Also, there is an expectation that overseas workers employed under a Labour Agreement will be paid the market salary.
• The Labour Agreement program is designed to address a genuine labour market need rather than to accommodate an employer’s preference to employ a particular overseas worker.
• A Labour Agreement defines employer obligations such as the terms and conditions of employment for the skilled overseas workers and training requirements for Australian employees.
• The Labour Agreement defines the required skill and English language levels that overseas workers under the agreement must meet.
• Employers requesting a Labour Agreement should provide a comprehensive submission to the Australian Government, represented by the Department of Home Affairs (DoHA). The bid will be assessed, and additional information may be requested.

Please note that not all Labour Agreement requests are approved.  EasyMigrate can provide help in preparing a comprehensive submission for any Employer applying for a Labour Agreement. All information from the employer is treated as Commercial-in-Confidence. 

To find out more about Labour Agreements or to see if your employer is eligible to apply for a Labour agreement contact our team to today or call +61 8 9221 4888.

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From March 2018, the 457 visa for Australia will be abolished. For many Australian employers and existing temporary migrants, this change will have consequences. We have spoken to many employers over the years who have complained that they have struggled to find qualified, experience good staff (hence their reasoning to sourcing overseas skilled workers). Employers who are considering recruiting overseas employees will need to be aware of the changes in the different types of visas and the tax implications that will apply.

Who is eligible for TSS?

For an employer to recruit an overseas skilled worker, the vacant position must appear on the Combined List of Eligible Skilled Occupations. Position description and the TSS visa applicant’s employment and education history must reflect the description provided by ANZSCO. If applicants do not come from one of the exempt countries (UK, USA, Canada, NZ or Ireland), they will also need to meet English language requirements.

Out of the current 651 occupations eligible for 457 visas, only 435 jobs categories will be suitable for Temporary Skilled Shortage (TSS) visa.

TSS will come in two categories: Short-Term Skilled Occupations List (STSOL)  a two-year visa that can be extended only once and offers no pathway to permanent residency; and Medium and Long-Term Strategic Skills List (MLTSSL) a four-year visa which can lead to Australian permanent residency after three years.

How do I apply for TSS?

TSS ( like 457) will be a three-step application process.

• Standard Business Sponsorship (SBS)  – To be able to employ overseas skilled workers on a TSS visa business must be approved as Standard Business Sponsor.   For a Business to be eligible for SBS it must have an active ABN to apply under, registering the business name, supplying Business Activity Statements (BAS) and financial statements, as well as showing a commitment to training Australian citizens and permanent residents and compliance with workplace and other Australian laws.

• Nomination –  is the next step. This is when the employer must nominate a position within their business as one which must be filled by an overseas citizen. As part of this step, there are various requirements to be met: for example labour market testing, salary level and training levy.

• Visa application –  Finally it’s the visa application, at which time the applicant must demonstrate that they meet the requisite skill level for their occupation, as well as health and character requirements.

If you currently hold a 457 visa or are thinking about lodging a 457 before the changes come into effect please speak to our team by calling +61 8 9221 4888 or email reception@easymigrate.com

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