Hiring Foreign Employees in Australia: Visa and Work Permit Requirements

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.

• 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.

• 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).

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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).

• 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.