Understand Labour Market Testing, Labour Agreements as Employers in Australia

Posted by Mckkrs on December 10th, 2020

Australian companies looking to hire professionals from outside the country have to meet some certain guidelines. They nominate foreign skilled workers after getting sponsorship. The race of getting sponsorship is not straight. It goes through several types of paper work. The article is addressing some essential points closely associated with sponsorship.

Salary Requirements

Employers who wish to nominate workers under Subclass 186, 187, and 482 must have to meet certain salary and employment-related conditions. It ensures that overseas workers will not less than the income Australian workers get for the same work in the same location. It is called as Annual Market Salary Rate or AMSR. If the worker is getting less than the standard Australian income, employers have to determine the AMSR correctly. The payment must exclude any non-monetary benefits and must be not less than the Temporary Skilled Migration Income Threshold (TSMIT).  The TSMIT can increase with time. Workers need to be paid according to the AMSR and the guaranteed annual earnings. The income must be close to the current TSMIT.

Labour Agreement

A labour agreement is signed between the Australian Government and employers. It is in effect for 5 years and gives employers the opportunity to nominated skilled workers under one or more skilled visas such as TSS Visa 482, Employer Nomination Scheme Visa 186, and Skilled Employer Sponsored Regional Visa 494. It is an approval to businesses in Australia to sponsor skilled workers. There are various types of labour agreement such as Company Specific Labour Agreements, Designated Area Migration Agreement (DAMA), and Industry Labour Agreements. At present, there are nine industries come under labour agreements such as diary, fishing, meat, Minister of Religion, pork, advertising and horticulture.

Labour Market Testing

The Australian government gives preference to its citizens first like other dedicated governments. Companies in Australia looking to nominate overseas worker have to present their labour market testing.  It is a proof that companies have put effort to hire employees from Australia first. Labour market testing generally involves advertising the position in Australia for which you are looking to nominate overseas workers. The advertising must meet all the requirements for the job position in reputed Australian job websites. There must be at least two advertisements.