Key Takeaways:
- Visa types for skilled workers
- Employer sponsorship requirements
- Application process and timelines
- Compliance with Australian immigration laws
Introduction
Overview of Australia’s need for skilled foreign workers and the visa and work permit pathways available.
Visa Types for Foreign Workers in Australia
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.
1. Temporary Skill Shortage (TSS) 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.
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Who is eligible?
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.
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Short-Term Stream vs. Medium-Term Stream:
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).
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Pathway to Permanent Residency:
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.
2. Employer Nomination Scheme (ENS) Visa
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.
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Who is eligible?
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.
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Permanent Residency:
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.
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Streams within the ENS Visa:
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.
Sponsorship and Nomination Process for Employers
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.
Employer Requirements for Sponsoring Foreign Workers
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.
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Standard Business Sponsor:
Companies must apply to become a Standard Business Sponsor. To be eligible, businesses must operate legally in Australia and demonstrate a genuine need for foreign workers. Additionally, employers must meet the Training Benchmark requirements, which ensure they are investing in the training of Australian workers.
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Labor Market Testing (LMT):
Employers are required to conduct Labor Market Testing (LMT) before nominating a foreign worker. This involves advertising the position to local candidates to prove that there are no suitably qualified Australians available to fill the role.
Nomination Process through the Department of Home Affairs
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.
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Nomination Requirements:
Employers must provide proof that the job meets the relevant minimum salary threshold, which ensures that foreign workers receive the same salary as local workers in similar roles. Additionally, the role must align with an occupation listed on the relevant skilled occupation list (STSOL or MLTSSL).
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Submitting the Nomination:
The nomination must be submitted to the Department of Home Affairs along with supporting documents, such as the employment contract, evidence of Labor Market Testing, and proof of the business’s ability to meet salary obligations. The nomination process typically takes several weeks to process.
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Work Visa Application Process
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.
Detailed Steps for Applying for TSS and ENS Visas
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Ensure Eligibility:
Before applying, foreign workers must ensure that they meet all eligibility requirements, including qualifications, skills, and English language proficiency. For the ENS Visa, the applicant must also have a valid job offer from an Australian employer and be nominated for the role.
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Gather Documentation:
Required documents for the TSS or ENS Visa application include:
- Passport and identification documents
- Proof of qualifications and relevant work experience
- English language test results (such as IELTS or TOEFL)
- Health and character checks (e.g., police clearance certificates)
- Nomination approval from the sponsoring employer
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Submit the Visa Application:
The foreign worker submits the visa application online through the Department of Home Affairs portal, including all required documentation. For the TSS Visa, the processing time typically takes between two to five months, while ENS Visa processing times may vary depending on the stream.
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Await Approval:
Once the application is submitted, the Department of Home Affairs reviews the visa application. Upon approval, the foreign worker is granted the visa and can legally begin employment in Australia.
Costs, Processing Times, and Required Documents
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Costs:
The cost of applying for a TSS Visa varies depending on the length of the stay and stream. For the Short-Term Stream, the application fee is around AUD 1,290, while the Medium-Term Stream costs around AUD 2,690. The ENS Visa application fee is typically AUD 4,115. Additional costs may apply for health checks, English language tests, and police clearances.
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Processing Times:
The processing time for TSS Visas is usually between two to five months, depending on the stream and the complexity of the application. ENS Visa processing can take anywhere from five to eight months, depending on the stream and nomination approval.
Employer Compliance with Immigration Laws
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.
Obligations to Ensure Visa Conditions are Met
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.
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Record-Keeping:
Employers must maintain accurate records of foreign workers’ employment, including salary details, working hours, and any changes to employment conditions.
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Monitoring Compliance:
The Department of Home Affairs may conduct random audits to ensure that businesses are complying with visa conditions and maintaining proper documentation. Employers must report any changes to the foreign worker’s employment status, such as changes in salary, job role, or termination.
Penalties for Non-Compliance
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.
How AYP Can Help
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.