New Labour Market Testing (LMT) rules for Sponsored Work Visas
Updated: Nov 10, 2020
As the Australian economy slows down due to the pandemic, employer-sponsored visa requirements are refreshed, to ensure Australian workers come first. The Department of Home Affairs has recently updated the Labour Market Testing criterion of temporary and permanent employer-sponsored visas.
Labour Market Testing (LMT) refers to the requirement to advertise the position of the sponsored worker before the application can be lodged. The idea behind it is to make sponsors search for suitable local staff before sponsoring an overseas employee.
Temporary visas (Subclasses 457,482, 494)
Under the previous arrangements, employers seeking to nominate overseas staff on a temporary work visa had to place two job adverts for the nominated position prior to lodging the nomination application.
As of 1 October 2020, a third advert must be placed on Jobactive, a free job board operated by the Australian Government.
This new requirement applies to all nominations lodged on or after this date under Subclass 457 (Temporary Work Skilled), Subclass 482 TSS (Temporary Skill Shortage) and Subclass 494 (Skilled Employer Sponsored Regional (Provisional)) visas. Applications lodged beforehand are not affected.
All 3 adverts need to follow strict guidelines relating to where they can be placed and the information they should contain. For example, provide the salary, employer and location of workplace. Each advert must run for 4 weeks before lodging the employer nomination application.
Exemptions from the LMT criterion exist in very limited circumstances, such as when international trade obligations apply.
Permanent Visas (Subclasses 186 & 187)
In order to demonstrate that there is a genuine need to permanently sponsor an overseas under Subclass 186 or 187 visas, the position should be advertised on Jobactive before lodging the application.
To be safe, the Jobactive advert should follow the same LMT guidelines applicable to temporary visas. There are no exemptions from the LMT requirement for permanent employer sponsored visa nominations.
Sponsors should be careful to ensure all the LMT requirements have been met before lodging the application. Mistake cannot be rectified post-lodgement. In addition, the strict application of the 28 days period can be an issue when the sponsored worker's visa is about to expire. Using an experienced Migration Agent is recommended.
Quick tip - Jobactive can take a few days to publish a submitted advert. Adding this to the 28 days count will help to ensure the LMT period has been served prior to lodging the application.
About the Writer
Elan Rysher is a Registered Migration Agent and Qualified Student Counsellor. He is the founder of Rysher Migration and the main Writer for ImmiUpdates. Elan has many years of experience working in migration, finance and health. Being a former migrant himself, Elan is passionate about helping others fulfill their Australian dream.
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