Important Updates
Important Updates
October 2, 2025Somalia: Electronic Travel Authorization Launched
October 2, 2025 | United StatesComputer Weekly: How UK Immigration Must Evolve to Attract the Best Global Talent
October 2, 2025 | United KingdomConstruction Management: Immigration Compliance: Is Your Firm Violating Visa Rules?
October 2, 2025 | NamibiaNamibia: New Online Visa-on-Arrival Launched
October 2, 2025 | Saudi Arabia, United Arab EmiratesPartner Abeer Al Husseini Recognised at the Gulf Business Awards 2025
October 2, 2025Somalia: Electronic Travel Authorization Launched
October 2, 2025 | United StatesComputer Weekly: How UK Immigration Must Evolve to Attract the Best Global Talent
October 2, 2025 | United KingdomConstruction Management: Immigration Compliance: Is Your Firm Violating Visa Rules?
October 2, 2025 | NamibiaNamibia: New Online Visa-on-Arrival Launched
October 2, 2025 | Saudi Arabia, United Arab EmiratesPartner Abeer Al Husseini Recognised at the Gulf Business Awards 2025
October 2, 2025Somalia: Electronic Travel Authorization Launched
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Navigating Immigration Under the Second Trump AdministrationTravel & Mobility Considerations: Situation in the Middle EastImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese ImmigrationView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Navigating Immigration Under the Second Trump Administration
  • Travel & Mobility Considerations: Situation in the Middle East
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • Vietnamese Immigration
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
  • Insights

Five Tips to Avoid Permanent Residence Pitfalls

July 31, 2014

cherie-wright_sydney

Country / Territory

  • AustraliaAustralia

Related offices

  • Brisbane
  • Melbourne
  • Perth
  • Sydney

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related offices

  • Brisbane
  • Melbourne
  • Perth
  • Sydney

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related offices

  • Brisbane
  • Melbourne
  • Perth
  • Sydney

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn
Employer-sponsored Permanent Residence is attractive for many employees and employers, yet it can be a costly exercise for both if they get it wrong. As there are different schemes and eligibility pathways, the application process can be complex. 
 
The Employer Nomination Scheme (ENS) enables an Australian business to sponsor an individual to fill a full-time, permanent position within their organisation. The Regional Sponsored Migration Scheme (RSMS) has the same purpose, but applies to individuals nominated for positions in regional Australia. 
 
As well as health, character, language and age requirements, applicants under the ENS/RSMS need to satisfy the criteria for one of three eligibility pathways:
  1. The Temporary Residence Transition stream (TRTS), where the applicant has worked with the sponsoring employer for at least two years in their nominated occupation whilst holding a 457 visa.
  2. The Direct Entry stream (DES), where the applicant has obtained a positive skills assessment in the nominated occupation and can provide evidence of at least three years’ relevant experience in that occupation.
  3. The Agreement stream, where the applicant is nominated by an employer through a labour agreement.
 
Each stream comes with its own pluses and minuses. With this mind, here are five tips to avoid the common pitfalls that can affect the outcome for employers and employees looking at sponsored permanent residence.
 
Tip 1: Only Australian companies can nominate under the ENS/RSMS.
 
An overseas company may be approved to sponsor 457 visa holders to fulfill contractual obligations or establish a business operation in Australia. However, such overseas businesses cannot nominate under ENS/RSMS as they may not be considered to be actively ‘operating a business in Australia’.
 
Tip 2: Consider any corporate restructures or changes in role.
 
Any changes to the structure or legal status of the entity in which the 457 visa holder has worked or changes in roles within the claimed two-year employment period could mean that the employment cannot be counted towards the TRTS period, and the two years are re-set.
 
Tip 3: Have you selected the correct entity to nominate?
 
Under the DES, the nominator must be the ‘direct employer’ of the applicant. However, the TRTS allows for the nomination of positions located within an ‘associated entity’, although the 457 visa sponsor must act as the nominator.
 
Tip 4: Have you correctly calculated the ‘earnings’?
 
Specific exemptions to English, skills and age criteria are available under both streams based upon the ‘earnings’ for the nominated role. It is essential not to miscalculate this amount, noting that earnings are comprised of: 
  • wages 
  • amounts that the employee has directed the employer to pay 
  • the value of agreed non-monetary benefits. 
But not: 
  • payments of amounts which cannot be determined in advance (such as performance based commissions and bonuses) 
  • reimbursements 
  • compulsory contributions to superannuation.
 
Tip 5: Different training criteria apply across the streams.
 
If a nominator cannot demonstrate that they have maintained the relevant level of training expenditure throughout the validity of their standard business sponsorship, they cannot satisfy the requirements of the TRT stream. In these cases, the nominator may need to consider using the DES, where the training benchmark only needs to be met in the previous twelve months. 
 
MARN 0004980 / MARN 1068431 
 
 

Country / Territory

  • AustraliaAustralia

Related offices

  • Brisbane
  • Melbourne
  • Perth
  • Sydney

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related offices

  • Brisbane
  • Melbourne
  • Perth
  • Sydney

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related offices

  • Brisbane
  • Melbourne
  • Perth
  • Sydney

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

Computer Weekly: How UK Immigration Must Evolve to Attract the Best Global Talent

Senior Manager Kinka Tonchev highlights how UK immigration must adapt to attract, retain and support the world’s top talent.

Learn more

Media mentions

Construction Management: Immigration Compliance: Is Your Firm Violating Visa Rules?

Manager Kirsty Moore and Trainee Solicitor Amanda Ong highlight rising UK construction sponsor licence risks and how businesses can stay compliant.

Learn more

Awards

Partner Abeer Al Husseini Recognised at the Gulf Business Awards 2025

Partner Abeer Al Husseini is recognised on the shortlist for "Women Leader of the Year" at the Gulf Business Awards 2025.

Learn more

Media mentions

The Washington Post: How Companies Might Avoid Trump’s New $100K Visa

Co-Chair Enrique Gonzalez highlights approaches for companies navigating changes to the H-1B visa process.

Learn more

Video

How to Get Your French Work Visa After Graduation: Job Seeker / Company Creation Permit

Learn how international graduates can stay in France for one year to find work or start a business. Discover eligibility requirements, application steps and transition options for the Job Seeker/New Business Creator permit. 

Learn more

Awards

Partner Priscilla Muhlenkamp Named 2025 National Law Journal Awards Finalist for "DC Managing Partner of the Year"

Partner Priscilla Muhlenkamp is a finalist for the 2025 National Law Journal Awards category, "DC Managing Partner of the Year."

Learn more

Media mentions

Post Bulletin: Trump’s New $100K Fee on Certain Work Visas Could Impact Rochester’s Medical Staff

Partner Bo Cooper highlights that new $100K H-1B fees could affect US employers, with possible exemptions for critical roles.

Learn more

Media mentions

The Caterer: Businesses Need to Be Ready for Government Crackdown on Sponsor Licences

Partner Louise Senior highlights the impact of record-breaking UK sponsor licence revocations and the steps hospitality businesses can take to manage compliance.

Learn more

Media mentions

Folha de São Paulo: Taxa de US$ 100 mil para visto dos EUA muda planosde brasileiros; veja opções

Partner Bo Cooper explores the impact of H-1B visa changes on companies and their talent strategies.

Learn more

Media mentions

Global Mobility Lawyer: Lawyers Try to Make Sense of Trump’s Confusing H-1B Fee Hike

Partner Bo Cooper explains that while new H-1B fees affect future petitions, US opportunities for international talent remain highly valued.

Learn more

Media mentions

Kommunal topinform: Staatsdienst am Limit

Fragomen explores in an article how international recruitment can help solve Germany’s public sector staffing crisis and support the future of essential services.

Learn more

Blog post

UAE Golden Visa: Work Permit Requirements for Employers and Professionals

Assistant Manager Charo Medida explains the work permit requirements for employers and professionals under the UAE Golden Visa programme.

Learn more

Media mentions

Computer Weekly: How UK Immigration Must Evolve to Attract the Best Global Talent

Senior Manager Kinka Tonchev highlights how UK immigration must adapt to attract, retain and support the world’s top talent.

Learn more

Media mentions

Construction Management: Immigration Compliance: Is Your Firm Violating Visa Rules?

Manager Kirsty Moore and Trainee Solicitor Amanda Ong highlight rising UK construction sponsor licence risks and how businesses can stay compliant.

Learn more

Awards

Partner Abeer Al Husseini Recognised at the Gulf Business Awards 2025

Partner Abeer Al Husseini is recognised on the shortlist for "Women Leader of the Year" at the Gulf Business Awards 2025.

Learn more

Media mentions

The Washington Post: How Companies Might Avoid Trump’s New $100K Visa

Co-Chair Enrique Gonzalez highlights approaches for companies navigating changes to the H-1B visa process.

Learn more

Video

How to Get Your French Work Visa After Graduation: Job Seeker / Company Creation Permit

Learn how international graduates can stay in France for one year to find work or start a business. Discover eligibility requirements, application steps and transition options for the Job Seeker/New Business Creator permit. 

Learn more

Awards

Partner Priscilla Muhlenkamp Named 2025 National Law Journal Awards Finalist for "DC Managing Partner of the Year"

Partner Priscilla Muhlenkamp is a finalist for the 2025 National Law Journal Awards category, "DC Managing Partner of the Year."

Learn more

Media mentions

Post Bulletin: Trump’s New $100K Fee on Certain Work Visas Could Impact Rochester’s Medical Staff

Partner Bo Cooper highlights that new $100K H-1B fees could affect US employers, with possible exemptions for critical roles.

Learn more

Media mentions

The Caterer: Businesses Need to Be Ready for Government Crackdown on Sponsor Licences

Partner Louise Senior highlights the impact of record-breaking UK sponsor licence revocations and the steps hospitality businesses can take to manage compliance.

Learn more

Media mentions

Folha de São Paulo: Taxa de US$ 100 mil para visto dos EUA muda planosde brasileiros; veja opções

Partner Bo Cooper explores the impact of H-1B visa changes on companies and their talent strategies.

Learn more

Media mentions

Global Mobility Lawyer: Lawyers Try to Make Sense of Trump’s Confusing H-1B Fee Hike

Partner Bo Cooper explains that while new H-1B fees affect future petitions, US opportunities for international talent remain highly valued.

Learn more

Media mentions

Kommunal topinform: Staatsdienst am Limit

Fragomen explores in an article how international recruitment can help solve Germany’s public sector staffing crisis and support the future of essential services.

Learn more

Blog post

UAE Golden Visa: Work Permit Requirements for Employers and Professionals

Assistant Manager Charo Medida explains the work permit requirements for employers and professionals under the UAE Golden Visa programme.

Learn more

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • Twitter

© 2025 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.