Overview of Australia’s need for skilled foreign workers and the visa and work permit pathways available.
Australia provides several visa options for hiring skilled foreign workers, allowing employers to fill critical roles that cannot be met by the local labor market. The two primary visa types that facilitate the employment of foreign professionals are the Temporary Skill Shortage (TSS) Visa and the Employer Nomination Scheme (ENS) Visa.
The Temporary Skill Shortage (TSS) Visa (subclass 482) is the most common visa for hiring skilled foreign workers in Australia. It is designed to help Australian businesses fill temporary skill gaps by bringing in workers from overseas for roles where qualified local candidates are not available.
The TSS Visa allows skilled workers to live and work in Australia for two to four years, depending on the job and the need. To be eligible, foreign workers must have the skills and qualifications required for the position and meet the English language proficiency requirements.
The TSS Visa is divided into two streams: the Short-Term Stream and the Medium-Term Stream. The Short-Term Stream allows foreign workers to stay for up to two years and is meant for occupations on the Short-Term Skilled Occupation List (STSOL). The Medium-Term Stream, on the other hand, permits stays of up to four years and is available for occupations on the Medium and Long-Term Strategic Skills List (MLTSSL).
While the TSS Visa is primarily a temporary visa, the Medium-Term Stream offers a pathway to permanent residency after three years of employment with the same sponsor, provided the worker meets certain criteria.
The Employer Nomination Scheme (ENS) Visa (subclass 186) allows skilled workers to live and work permanently in Australia. This visa is typically used when businesses want to sponsor foreign employees for permanent roles.
To qualify for the ENS Visa, foreign workers must be nominated by an Australian employer and meet the necessary skills, experience, and qualifications for the job. Additionally, applicants must either hold a TSS Visa or have worked in Australia in the nominated occupation for at least three years.
The ENS Visa provides a direct pathway to permanent residency in Australia, making it an attractive option for employers looking to retain foreign talent long-term.
There are three streams under the ENS Visa: the Direct Entry Stream, the Temporary Residence Transition Stream (for TSS visa holders), and the Labor Agreement Stream. Each stream has specific criteria, such as years of experience or occupation lists, that employers and employees must meet.
For businesses to hire foreign employees in Australia, they must first become an approved sponsor and then nominate the foreign worker for a specific role. This process involves meeting certain eligibility requirements and following the correct procedures as set out by the Department of Home Affairs.
Before hiring foreign employees under the TSS or ENS Visa programs, businesses must apply to become an approved sponsor. This sponsorship approval allows the company to nominate foreign employees for skilled roles, demonstrating that no suitable Australian candidate is available for the position.
Once the company is approved as a sponsor, the next step is to nominate a foreign worker for the specific position. The nomination process requires businesses to submit key documents and information about the job role, salary, and employment conditions.
After the nomination is approved, the foreign worker must submit their visa application to the Department of Home Affairs. This application process varies depending on whether the worker is applying for the TSS Visa or the ENS Visa.
Employers in Australia have specific obligations to ensure compliance with immigration laws when hiring foreign employees. Failure to meet these obligations can result in penalties, including fines or the cancellation of sponsorship approval.
Employers must ensure that foreign workers comply with all visa conditions, including employment in the nominated role, salary conditions, and compliance with Australian labor laws.
Non-compliance with Australia’s immigration laws can result in severe penalties for employers. These penalties may include fines of up to AUD 315,000, cancellation of sponsorship approval, and restrictions on hiring foreign workers in the future. It is essential for businesses to remain compliant with all immigration and labor laws to avoid legal repercussions.
Navigating the complexities of Australia’s visa and work permit requirements can be overwhelming for businesses. At AYP, we offer comprehensive Employer of Record (EOR) and Professional Employer Organisation (PEO) services to help businesses hire foreign employees without the administrative burden of visa applications and immigration compliance.
AYP manages the entire hiring process, from sponsoring foreign workers to applying for visas, ensuring that your business remains fully compliant with Australia’s immigration laws. Our expert team handles everything, allowing you to focus on growing your business while we take care of the complexities of hiring foreign talent.
