Labour Market Testing - 457

Misuse of the 457 visa scheme apparently continues and the response this time around is to introduce labour market testing ("LMT"). Getting rid of LMT was one of the big reforms the last time there was a major overhaul of the Employer Nomination Scheme…never mind!

I am very grateful to the MIA's email to members this afternoon which provided a very useful summary of the new requirements and which I summarise below:

LMT must be undertaken by standard business sponsors prior to lodging a nomination. Standard business sponsors must provide information with their nomination about:

• Their attempts to recruit Australian workers;

• How they have determined on the basis of these attempts that there is not a suitable qualified and experienced Australian citizen, permanent resident or eligible visa holder available to fill the position.

There are some exemptions for Working Holiday Makers and for Work and Holiday visa holders in the agricultural sector. Thankfully LMT is not needed where it would conflict with Australia’s international trade obligations.

Evidence of LMT must be provided with the nomination. This includes a completed "domestic recruitment summary table" which includes the following:

• List all modes of advertising or recruitment efforts in the last 12 months for that occupation, for example, online, social media, newspaper, internal recruitment, trade publications);

• Provide details of where the advertisement or recruitment effort took place (for example, name of publication, website, job or careers expo);

• Period/dates of advertising or recruitment;

• Fee(s) paid for advertising or recruitment;

• Provide details of who the fees were paid to;

• Geographical target audience;

• Number of applications received;

• Number of applicants that were hired;

• Reasons candidates were not successful;

An authorised person then has to sign off on it: I declare that the information I have provided in this document is, to the best of my knowledge, true and accurate and I am aware of the penalties for providing misleading or false information to the Commonwealth. 

Policy will be released later in the month. In the interim keep checking the DIBP website for more info.