TL;DR
- The Employer Nomination Scheme (Subclass 186) visa allows Australian businesses to sponsor skilled overseas workers for permanent residence through three distinct streams.
- Employers must meet strict nomination requirements, including offering a full-time position in an eligible occupation.
- The three ENS streams are Direct Entry, Temporary Residence Transition, and Labour Agreement — each with different eligibility criteria and processing pathways.
- For a Subclass 186 visa, the employers are required to offer the position to the visa applicant for at least two years.
- Processing times and government fees vary by stream and individual circumstances; working with a registered migration agent significantly reduces the risk of delays and refusals.
The Employer Nomination Scheme, or ENS Subclass 186 visa, allows approved Australian businesses to sponsor skilled overseas workers for permanent residence through three streams: Direct Entry, Temporary Residence Transition, and Labour Agreement. Employers must be an approved sponsor, pay the Skilling Australians Fund levy, and meet strict nomination and ongoing compliance obligations.
Skilled labour shortages continue to affect many Australian businesses, making temporary skilled visas an effective short-term solution but not always the best long-term strategy for retaining skilled employees. The Employer Nomination Scheme (subclass 186) provides a pathway to permanent residency that can help businesses secure the skilled workers they need for the long term.
The Employer Nomination Scheme visa is a valuable tool for employers. It can strengthen retention, improve workforce stability and demonstrate a genuine commitment to valued employees who have the skills to contribute to the business well into the future.
The following information outlines the Employer Nomination Scheme and how it can help businesses employ long-term overseas talent.
What Is the Employer Nomination Scheme (ENS) Visa?
The Employer Nomination Scheme is a permanent employer-sponsored visa allowing skilled workers who are nominated by their employer to live and work in Australia permanently. Unlike temporary employer-sponsored visas which are designed to address immediate workforce needs, the Employer Nomination Scheme visa provides a pathway to permanent residency for eligible workers who have the skills and experience a business needs for the long term.
It is an employer-driven process, meaning the employer must decide to sponsor the employee and initiate the nomination. Once approved, the skilled employee can apply for the subclass 186 visa.
While there are several Australian work visas for skilled professionals available, for most employers the Employer Nomination Scheme is the most straightforward pathway for sponsoring skilled workers compared to regional options or invitation-based visas where they have no influence over the outcome.
The Three ENS Streams Explained
The Employer Nomination Scheme is made up of three streams: the Direct Entry stream, the Temporary Residence Transition stream and the Labour Agreement stream. Each of these streams is designed to address different employment and visa circumstances.
Direct Entry Stream
The ENS Direct Entry stream is for overseas workers who have not held a relevant temporary visa in Australia.
Applicants are required to meet the following criteria:
- Have at least three years of relevant work experience
- Have a skills assessment from the relevant assessing body
- Be under 45 years of age on the date of application lodgement
- Be nominated for an occupation on the Core Skills Occupation List
- Have at least three years of relevant work experience, unless an exemption applies
- Minimum standard of English language proficiency
- Meet character and health requirements
Businesses can recruit skilled workers who are overseas or in Australia on temporary or non-sponsored visas.
Temporary Residence Transition (TRT) Stream
The ENS Temporary Residence Transition stream is for overseas workers who have held a subclass 482 visa for at least two years with an employer working in the nominated occupation. This is the most commonly used ENS stream as it enables employers with skilled workers on temporary visas such as the subclass 482 (TSS or SID) to transition them to the subclass 186.
This stream doesn’t require a skills assessment unless one is requested.
For businesses already sponsoring skilled workers, this stream is the natural next step in the employment journey and can hold many advantages including workforce stability and lower recruitment costs.
Labour Agreement Stream
The Labour Agreement stream is for businesses that have a formal agreement in place with the Australian Government. Labour agreements are used where the standard visa program can’t accommodate specific workforce or industry needs.
For a business to obtain a labour agreement, they need to determine whether their workforce needs can be satisfied with the standard visa program. If not, they can then lodge an application with the Australian Government ensuring they present a strong business case for the need for a labour agreement. If approved, the labour agreement comes into effect once signed by all parties and counter-signed by the Minister or their delegate.
To be eligible for the Labour Agreement stream, applicants must be currently working or preparing to work for the nominating employer who holds a labour agreement. They must also meet age, skill and English language requirements of the labour agreement.
Employer Eligibility and Sponsorship Requirements
To nominate and sponsor skilled overseas workers, a business needs to be an approved business sponsor or hold a labour agreement.
Once a business is approved as a sponsor or has a labour agreement, they can then nominate workers. Businesses need to meet nomination criteria including:
- Lawfully operating an Australian business
- Have a full-time position available in an occupation listed on the relevant occupations list
- Pay a salary at or above the Annual Market Salary Rate (AMSR)
- Contribute to the Skilling Australians Fund (SAF)
- Not engage in discriminatory recruitment practices
ENS Visa Processing Timeframes and Government Costs
Application times for the Employer Nomination Scheme visa vary and can be impacted by the following:
- Whether the application has all the necessary supporting documentation
- Whether the application was lodged online or a paper application was submitted
- How quickly requests for more information are addressed
- How long it takes to receive information from external agencies in relation to health, character and national security requirements
- The complexity of the visa application
Currently, subclass 186 applications can take from 10 to 20 months to process. Once an application is lodged, applicants can get an indication of processing times using the visa processing time guide tool on the Department of Home Affairs website.
The Government visa application charge (VAC) applies to all visa applications and are non-refundable. Costs may also apply for:
- English language testing
- Skills assessments
- Health and police checks
- Biometrics
These costs along with the VAC are the responsibility of the applicant.
There are several fees that apply when sponsoring skilled overseas workers. Employers are responsible for the following costs:
- Business sponsorship application fees
- Nomination fees
- Skilling Australians Fund (this is a once-off payment for this visa, and the amount depends on the size of the business)
- Migration agent / legal fees
- Recruitment costs
- Travel and relocation costs for the applicant and their family
Ongoing Sponsorship Obligations for Employers
Once the permanent visa is granted, the employer is required to offer the position for at least two years.
Why Australian Businesses Choose the ENS Visa to Fill Critical Roles
Sponsoring skilled workers on a 186 visa removes the uncertainty of employing overseas workers on temporary visas. It offers employers long-term workforce stability enabling them to continue to operate productively.
Industries with ongoing critical shortages such as healthcare, engineering, construction, IT and hospitality and tourism significantly benefit from the ENS.
Visa Solutions Australia has worked with many Australian businesses to help them secure overseas talent with the Employer Nomination Scheme. A registered migration agent can assist in explaining employer sponsored visa Australia options as well as help reduce the risk of visa refusal and its impact on future sponsorship.
Australian businesses and individuals have options when it comes to professional work visas for Australia. The Employer Nomination Scheme is one of the most effective permanent workforce solutions for Australian businesses facing skills shortages.
Seeking assistance with the Employer Nomination Scheme visa application from a registered migration agent can ensure the right ENS stream is selected to suit the needs of the business.
Contact Visas Solutions Australia’s team of registered migration agents for expert advice on hiring overseas talent with the Employer Nomination Scheme. Book a consultation.
Frequently Asked Questions
The Employer Nomination Scheme (Subclass 186) is a permanent visa that allows approved Australian businesses to nominate skilled overseas workers for permanent residence. It has three streams: Direct Entry, Temporary Residence Transition, and Labour Agreement.
Processing times vary by stream and application completeness. Check the Department of Home Affairs website for current indicative timeframes.
Employers are responsible for the Skilling Australians Fund levy. As the ENS is a permanent visa, this is a once-off cost. Government visa application charges and migration agent fees are additional costs.
Except for Subclass 186 Direct entry stream, Employers must hold current standard business sponsorship approval before lodging an ENS nomination. Businesses with a labour agreement with the Australian Government may use the Labour Agreement stream as an alternative pathway.
Employers are required to offer the position for at least two years once the permanent visa is granted.
