Labour Market Testing (LMT) requirement for 457 Company Sponsorship

Effective from 23 November 2013, labour market testing has become mandatory requirement for most sponsoring businesses in a manner consistent to Australia's international trade obligations.

Similar to RSMS visa schemes, sponsoring businesses are now required to provide explanatory evidence of their attempts to recruit suitably qualified and experienced local employees (citizens or residents) to the nominated position. The evidence should include details of role advertising (paid or unpaid), such as copy of the ad, media and date of advertising, job advertisement fees and any explanatory responses received. In addition, the sponsoring business is also obliged to provide full details of any past retrenchments in all occupations, which have occurred during the past four months leading to the nomination. 

457 training brenchmark

Lots of people asked me about the subclass 457 training benchmark. Guess that it's a good chance of writing the blog about this. Particularly, after the 1 July rush.

Training benchmark is the commitment from employers to show that they are good employers, from Australian government's perspective. When we say "good employers from Australian government's perspective", it means that employers need to create job for Australian people, to boost economy and not just give away jobs to foreigners workforce. Training benchmark is just one of the measurements to see how committed the employers are.

Training benchmark is the expenses that the employers had spent for the last 12 months immediate before the visa application lodge, to train or improve the employees skills. So that employees have enough skill to perform their task and hope that with that skills in hand, they would be able to go up the corporate ladder or move up to higher and better position and so forth. Ultimately, the Australian government "want" all these employees to be able to take up whatever position that will be advertised by employers so that employers won't need to employ the foreigners anymore.

One important thing to take note is that only the expenses spent on the training for Australian citizen or Australian permanent resident can be counted toward the training benchmark and it need to be at least 1% of the payroll (for the last 12 months immediate before the lodgement).

The payroll is staff's salary or wages for the last 12 months. For those business that trade under 12 months, I will write in separate blog.

The expenses for the training can be:
- the course fee, seminar fee that employees attend.
- subscription fee to magazine or professional association.
....and the list go on.

Employers or migration agents need to be creative about this. Please consult your registered migration agent about that fees or expenses can be used as part of the training benchmark.

Note:
Training benchmark is the mandatory, not a commitment. Australian government is really strict on this. Particularly, after 1 July 2013!!! Do things right, and that will make your life easy....in the long run.

No rush this 1 July

As 1 July is approaching. Lots of applicants quickly rush their applications in order to save some application fee and at the same time using the old relislation and so forth. With that, the DIAC system has been overloaded and downed for a long period of time. Create such an unnecessary hectic. My advice is really simple, do not rush. Prepare your application nicely. Slow but sure. Don't simply rush in your application just to save a few dollars. It's not worth it. I rather have all necessary documents ready and submit an "ready application" which will in turn get it done and processed faster.

Well...it's just my worth 2 cents anyway.

new changes for working visa subclass 457 is coming soon

As there was a claim about the loophole of visa subclass 457 in the media some of the employers using visa subclass 457 to employ foreigner worker while Australian is looking for job. 

There will be a new reform for visa subclass 457 coming this 1 July.The measures being brought forward include:

• the introduction of a genuineness criterion under which the department may refuse a nomination if 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 to ensure that higher paid salary workers are not able to be undercut through the employment of overseas labour at a cheaper rate
  
  
• the removal of English language exemptions for certain positions. Many long-term 457 workers go on to apply for permanent residence, and  this change will ensure that the 457 program requirements are brought into line with the permanent Employer Sponsored program which requires a vocational English ability. This change will benefit visa holders by ensuring that 457 visa holders, who have an ongoing position with their employer and want to apply for permanent residence in the long-run are not disadvantaged because of their language 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 and that subclass 457 workers cannot be exploited or used to undercut local workers
  
  
• 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 business
  
  
• 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.