Subclass 457 Labor Market Testing Requirement Takes Effect November 23

The labor market testing requirement for the Temporary Work (Skilled) (subclass 457) visa program, which was approved earlier this year, will take effect on November 23, 2013, the Department of Immigration and Border Protection (DIBP) recently confirmed.

The New Labor Market Testing Requirements

Subclass 457 sponsors will be required to demonstrate that they made efforts to find suitably qualified and experienced Australian workers for nominated positions at any time in the twelve months before the submission of nomination applications and must submit evidence of local recruitment efforts, unless they are exempt. For purposes of the new requirement, Australian workers will include Australian citizens and permanent residents, as well as temporary visa holders in the working holiday or work and holiday programs who are working for the sponsoring employer in the agricultural sector.

When labor market testing is required, sponsors must provide information about all advertising or other recruitment efforts taken in relation to the nominated occupation in the preceding twelve months. Sponsors must include the following details: where the advertising or other recruitment activities took place; the dates recruitment activities occurred; the geographic target audience; and the outcome of the recruitment, including the number of applications received, number of applicants hired and the general reasons why other candidates were not selected.

If a sponsor or an associated entity has laid off Australian workers in the same or a similar occupation to the one nominated, the sponsor must show that its recruitment attempts post-date the layoffs.

Occupations Requiring Labor Market Testing

DIBP has released a list of occupations that will be subject to the labor market testing requirements. Although not officially confirmed by DIBP, occupations that do not appear on this list will most likely be exempt if they require a diploma, bachelor’s degree or higher qualification, or equivalent experience. Applications will also be exempt if the labor market testing requirements would be inconsistent with Australia’s international trade obligations or for visa applicants who would assist with relief and recovery efforts after a major disaster.

What Employers Should Do in Anticipation of the Upcoming Requirements

Employers are urged to consider in advance the potential impact of the labor market testing criteria on their business and to contact their immigration service provider to plan for the changes.

For occupations that will require labor market testing, employers should start gathering information on their recruitment efforts in the past twelve months for the positions they intend to nominate after November 23.

Employers should prepare for application backlogs and longer government processing times in the coming weeks, as many sponsors will likely try to file applications before the labor market test requirements take effect on November 23. After November 23, processing may slow down as adjudicators become familiar with the new requirements.

Fragomen Webinar

Fragomen will host an informational webinar on November 26 to discuss the new requirements. Details and invitations for the webinar will be distributed soon.

This alert is for information purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].