Call for ‘burdensome’ Labour Market Testing to be abolished

See article from Chandler Training: http://www.chandlertraining.com.au/call-for-burdensome-labour-market-testing-to-be-abolished/

Read More»

China Free Trade Agreement (ChAFTA) - Labour Market Testing (LMT)

The Minister for Immigration has determined that Labour Market Testing (LMT) for subclass 457 visa applications is inconsistent with the terms of the China Free Trade Agreement (ChAFTA) and therefore does not need to be conducted for the following natural persons covered under the terms of the ChAFTA:

• Executives, Senior managers and Managers as Inter-Corporate transferees
• Specialists as Intra-Corporate Transferees
• Independent Executives
• Contractual Service Suppliers

 

Read More»

457 Visa Review - Government response

457 Review

In September 2014, after four months of consultations, with feedback from 189 submissions and more than 150 stakeholders, the results of the independent review into the 457 program were published.  22 recommendations were made overall in the pursuit of increased deregulation and liberalisation to improve the flexibility, responsiveness and certainty of the 457 program.

On 18 March 2015 the Government published its response which, with the exception of the extension of the list of countries exempted from English language testing and the continuation of Labour Market Testing, supported or supported ‘in principle’ all the recommendations.

Among those recommendations, the most important appear to be the following:

Recommendation   Government Response
Relaxing of the English Language Requirement The report recommended a relaxation of the current English Language requirement by accepting the average score, extending the number of testing authorities, increasing the number of countries exempt from English language testing.	The English language level will be altered to an IELTS average of 5 overall, with no less than 4.5 in any band. Alternate English language test providers are likely to be announced next month. The exemption for demonstrating English language competency will not be extended to further countries, although the current exemption for 5 years continuous study in English will be changed to 5 years ‘cumulative’ study.
Increasing validity period for Standard Business Sponsorship The report recommended extending the approval period from 3 to 5 years for established businesses and from the current 12 months to 18 months for start-up businesses.	SBS approvals will be extended from 3 to 5 years and from 12 to 18 months for start-up businesses. These new approval time frames will commence from the time of renewal or new applications for SBS. Current approvals will not be extended to these time frames.
Halving the time with the 457 sponsoring employer to access the 186 visa   The report recommended maintaining the two year period on a 457 for the Temporary Residence Transition stream but decreasing to one year the amount a 186 applicant needs to spend with the sponsoring employer.	The age limitations and the TRT time frames for transition to ENS will be reviewed as part of the Skilled Migration and 400 Visa Series Review, but the recommendations on these from the 457 review are supported.
Simplifying Training Requirement for 457 Sponsors The review recommended the abandonment of the current training benchmarks in favour of an annual "training levy" for each sponsored 457 holder (between $400 and $800) depending on the size of the business.	Training Benchmarks A and B will be replaced with an annual training fund contribution based on the number of 457 sponsored and with the contributions scaled according to the size of the sponsoring organisation These contributions will be made to the Department of Industry and directed to areas of identified training need. Training expenditure cost may decrease for sponsors under this new arrangement.
Enhanced Compliance The report recommended that the Department of Immigration should follow more closely the model of the ATO identifying discrepancies by risk tiering and data matching techniques. Furthermore, more funding should be allocated to monitoring and sanctions, as well as improving linkages with other agencies such as the Fair Work Ombudsman.	The ATO and the Department have signed an MOU which allows information to be shared on 457 visa holder salaries. The MOU allows the Department to request salary compliance checks across a broader range of the sponsored employees and businesses, without increasing the number of work site visits.
Reviewing the Occupations List for 457 Occupations and the Labour Market Testing requirement by a Tripartite Advisory Council The report recommended that a new Ministerial Advisory Council be set up in place of the current one. The new entity should be composed by representatives from Government, Unions and Industries and be supported by a dedicated market analysis team. The report recommended that the current Labour Market Testing be abolished.	The Ministerial Advisory Council on Skilled Migration cannot be replaced, but advice is being sought on whether it can be reconstituted to be more responsive on labour market issues.
Labour Market Testing   The report recommended that  employer-conducted labour market testing be abolished as not “fully reliable” and, in the Australian context, ineffective.	Labour market testing will not be abolished, however, the Department will examine ways to reduce the burden to employers and red tape in this process.

 

Read More»

457 Visa, Nomination, Upload documents, Immiaccount, Labour Market Testing

It is very important to remember, when lodging a 457 Nomination on Immiaccount, that evidence of Labour Market Testing, contrary to other required documentation, needs to be provided at the time of lodgement.

Read More»

Labor's 457 changes under review

The Department of Immigration & Border Protection (DIBP) is to undertake a review of Australia's 457 visa program.

A four-member panel, led by former public servant John Azarias, will conduct the review,

It has a mid-year deadline for its final report.

Also on the panel, which the assistant minister described as independent, are Professor Peter McDonald and ACCI director Jenny Lambert.

The Coalition last year opposed the former Labor government's June amendments to the Migration Act 1958, which reintroduced labour market testing (LMT) requirements for employers seeking to sponsor 457 visa workers and gave compliance powers to Fair Work inspectors.

ACTU secretary Dave Oliver says the Coalition's review is about helping employers fill job vacancies with international workers, and came "in the same month that saw the release of the worst unemployment figures in over a decade".

"This is appalling policy that will make it more difficult for the growing number of Australians who have lost their jobs to find work," he says.

Read More»

Labour Market Testing - 457 visas

The Department of Immigration and Border Protection (DIBP) has released the details of the Labour Market Testing (LMT) requirements which will apply to certain nominations made for a Subclass 457 visa from 23 November 2013.

The detailed policy lists occupations for which LMT will be required as well as setting out the exemptions that will apply based on Australia's international trade obligations.

Employers wishing to nominate applicants for a Subclass 457 visa will need to demonstrate evidence of having conducted LMT if a particular occupation is not specifically exempted and if an exemption is not otherwise available based on Australia's international trade obligations.

All professional and managerial occupations with the exception of nursing and engineering roles have been exempted from LMT requirements. By contrast, evidence of LMT will need to be provided for all trade occupations and most associate professional roles unless otherwise exempt as noted above.

If you have any questions or require advice, please contact us by telephone: 03 9614 7111 or by email: rcurtisgriffiths@nevettford.com.au

Read More»

Upcoming changes to the 457 Visa Program

On 23 February 2013, the Minister for Immigration and Citizenship announced a number of reforms to the subclass 457 program. The Department of Immigration & Citizenship state that the reforms are aimed at strengthening the capacity to identify and prevent employer practices that are not in keeping with the criteria of the subclass 457 program. The measures being brought forward include:

• the introduction of a ‘genuineness’ criterion under which the department may refuse a nomination if they determine that the position does not fit within the scope of the activities of the business
• an increase in market salary exemption threshold from $180 000 to $250 000
• the removal of English language exemptions for certain positions. Many long-term 457 workers go on to apply for permanent residence, and this change is being introduced so that the 457 program requirements are brought into line with the permanent Employer Sponsored program which requires a vocational English ability. Applicants who are nominated with a salary greater than $92,000 will continue to be exempted from the English language requirement
• enhanced regulatory powers for the department to ensure that the working conditions of sponsored visa holders meet Australian standards
• amendments to existing training benchmark provisions to clarify that an employer’s obligation to train Australians is ongoing and binding for the duration of their approved sponsorship, including for newly established businesses
• amendments to clarify that 457 workers may not be on-hired to an unrelated entity unless they are sponsored under a labour agreement
• amendments which will allow the department to refund a visa application fee in circumstances where an employer nomination has been withdrawn.

What is the intent of these measures?

The Department of Immigration and Citizenship has stated that capacity to detect and respond to the integrity concerns is limited by current legislation. The new measures are being introduced to strengthen the integrity framework. The department claims that the measures will also close loopholes in the current legislative and policy settings to ensure that the program can only be used by appropriately skilled persons and to fill genuine skills shortages.
The reforms are also designed to strengthen the sponsorship obligations to ensure that the working conditions of sponsored visa holders meet Australian standards.

When will the changes happen?

The comprehensive suite of measures will be introduced on 1 July 2013. In the lead up to the changes, detailed information will be made available to assist sponsors and visa holders and their representatives understand the new requirements.  We will provide further updates as information becomes available.

How will the changes affect Australian businesses?

The department claims that the changes will not adversely affect the vast majority of employers who are using the program appropriately. The changes will, however, strengthen the government's capacity to identify and prevent employer practices that are not in keeping with the purpose of the 457 program.

How will the changes affect current 457 visa holders?

There should be no adverse effects on existing visa holders. The 457 visa is a temporary visa, intended for filling short to medium term skill shortages, in a quick, flexible way to meet business needs. The Worker Protection reforms which took effect in September 2009 introduced a range of sponsorship obligations to ensure the working conditions of sponsored visa holders meet Australian standards.

How will the changes affect future 457 visa applicants?

The vast majority of 457 visa applicants who are genuine will not be affected by the changes. In some circumstances applicants whose applications are processed after 1 July 2013 may be required to provide further evidence to demonstrate their claims for a 457 visa.

What affect will the changes have on addressing real skills shortage problems?

Where employers can demonstrate a genuine need for skilled workers from overseas, they will still be able to sponsor people to fill skills gaps. Employers who make genuine attempts to open job opportunities up to Australians, who pay appropriate market rates and who are committed to the ongoing training and up-skilling of Australians will still have access to the subclass 457 program to supplement their skilled workforce.

What is labour market testing and how has it been used in the past?

Traditional forms of labour market testing involves advertising the position prominently in national and local newspapers, trade magazines and/or on job seeker websites over a number of weeks to prove that no suitably qualified Australians could be found for the position.
In the past, by the time an employer approached the Government to sponsor a skilled worker from overseas, they had already tested the local labour market thoroughly. However, they were still forced to go through the prescribed process which usually involved extra costs and delays for the employer.

Why is the government not reintroducing Labour Market Testing?

The 457 program is an important part of how Australia meets a number of our international trade obligations. These obligations mean that the government cannot limit access to the economy of people who wish to do business with Australia. Part of doing business with Australia often involves sourcing skilled labour from other countries. The department claims that Australia will remain open for business people and service providers and the reforms to the 457 program will not adversely impact these obligations.  Only time will tell with the Federal election this year and the roll out of above changes from 1 July 2013.

If you wish to find out more please do not hesitate to contact us.

Read More»