Is your business looking to sponsor employees under a 457 visa?

The Labour Market Testing (LMT) requirement for the subclass 457 Temporary Work (Skilled) visa programme will commence on 23 November 2013. Business sponsors who are seeking to employ an overseas worker to fill a skilled position will be required to test the local labour market before lodging a nomination.

How can my business show LMT?

This means that your business, at time of lodging a nomination, will need to show the Department:

  1. That attempts have been made to recruit Australian workers for the position;
  2. How the business has determined on the basis of these attempts that there is not a suitable qualified and experienced Australia citizen, permanent resident or working holiday visa-holder available to fill the position

LMT must be undertaken within the 12 months immediately prior to lodging a nomination.

What must I provide as evidence of LMT?

You must provide information about your attempts to recruit Australians, including the details and expenses of any advertising conducted. You can complete the Domestic Recruitment Table pro forma provided by the Immigration Department as evidence and attach it to your nomination.
Other evidence that could be provided (not mandatory) includes:

  • Labour market research;
  • Expressions of support from government employment agencies;
  • Information about the nominator’s participation in job and career expositions.

Are there any exemptions to the LMT requirement?

The LMT requirement does not apply to nominations lodged by parties to a labour agreement.

Are there any exemptions to the LMT requirement?

The LMT requirement does not apply to nominations lodged by parties to a labour agreement.

1. Conflict with international trading obligations
LMT will not be required where it would conflict with Australia’s international trade obligations as follows:

  • Where the worker is a citizen of Chile or Thailand, or is a citizen or permanent resident of New Zealand;
  • If your business is in a World Trade Organisation (WTO) member country and you are seeking to establish an Australian operation where the nominated occupation is “Executive or Senior Manager”;
  • The worker is a “Senior or Executive Manager” and is employed by an associated entity of your business which is located in a WTO member country and the nominee will be responsible for the entire or a substantial part of your company’s Australian operations;
  • The worker is a current employee of a business which is an associated entity of a business located in an Association of South-East Asian Nations (ASEAN) country;

2. If a major disaster has occurred
If your business is nominating someone to assist with relief of recovery after a major disaster, you will not need to show LMT.
3. Occupation based exemptions
The vast majority of occupations listed on the consolidated skilled occupation list (CSOL) will require LMT, however a small number of occupations will not be required to show LMT.

Do I need to tell the Department about any employees that have been retrenched or made redundant?

Yes! LMT requires you to provide information about any redundancies or retrenchments in your business that have happened within 4 months prior to lodging your nomination.

Other important LMT facts to know:

  • You can advertise vacant positions on social media
  • You can advertise vacant positions on your company’s website
  • You do not have to provide details of the recruitment process such as records of interview or copies of job applications received
  • Paid advertising will not be considered more favourably than free advertising
  • If you use an external recruitment agency, you are required to provide information about the recruitment efforts undertaken on your behalf and the outcome of those activities

If you have any questions about the new Labour Market Testing requirement or would like to know more about sponsoring employees under a 457 visa, please contact a member of our migration team.

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