Labour Market Testing (LMT) is a requirement for some visa categories to ensure employers are prioritising hiring suitable local workers before seeking foreign workers to fill positions.
Labour Market Testing is a requirement for the Skills in Demand (subclass 482) Visa and the Skilled Employer Sponsored Regional (subclass 494) Visa. Business sponsors (employers) must demonstrate to the Department of Home Affairs that they are unable to fill the specific position within their business by an Australian worker by undertaking Labour Market Testing. Labour Market testing generally involves advertising the position in Australia.
What Does Labour Market Testing Involve?
Labour Market Testing is a type of recruitment campaign conducted by the business to test the Australian labour market before making an offer to a foreign worker.
To satisfy labour market testing, employers must run at least two advertisements prior to offering a job to an overseas worker.
The advertisement must meet the following requirements:
- The job must be advertised in Australia, in English and contain:
- the title or a description of the position (multiple positions advertised in one advertisement is acceptable)
- the skills or experience required for the position
- the name of the approved sponsor or the name of the recruitment agency being used by the sponsor
- the salary for the position if the annual earnings for the position are lower than $96,400 (it is acceptable to publish a salary range, e.g. AUD$80,000 – $90,000)
2. At least two advertisements must be published in any of the following:
- o a prominent or professional recruitment website with national reach that publishes advertisements for positions throughout Australia
- industry specific recruitment websites relevant to the occupation that are in significant use by the industry are an acceptable method of LMT advertising
- a general classifieds website or an advertisement solely through social media notification (e.g. Twitter or Instagram) are not acceptable methods of advertising.
3. LinkedIn’s online recruitment platform is acceptable for LMT purposes, however job vacancies restricted to LinkedIn profile members only are not acceptable for LMT purposes.
- national print media (newspapers or magazines with national reach that are published at least monthly and marketed throughout Australia)
- national radio
- on the business’s website if the business is an accredited sponsor
4. Advertisements, including those on websites are expected to run for at least four weeks
5. Applications or expressions of interests for the advertised position must have been accepted for at least four weeks
Other Important Information Related to Labour Market Testing
– The nominated position may be advertised in the same medium (e.g. newspaper advertisements on two separate occasions) or in any two different mediums simultaneously, or on two separate occasions
– The nominated position may be advertised over two or more overlapping periods totalling a minimum of four weeks
– Advertising can be undertaken by a third party if authorised to do so by the sponsor (e.g. an associated entity or a contracted party, such as a recruitment agency). There is no requirement that the sponsor place the advertisement themselves
Providing Evidence of Labour Market Testing
Sponsors are required to provide evidence of Labour Market Testing. When a sponsor nominates an applicant, they must provide a total of two advertisements that meet the LMT advertising requirements when the nomination is lodged.
Labour Market Testing Exemptions
Labour Market Testing is not required where Australia has waived this requirement under its international trade obligations (ITO). Exemptions apply to the following circumstances:
– The nominated worker is applying in one of the LMT exempt categories under an ITO and is a citizen/national of Brunei, China, Japan, Malaysia, Mexico, Peru, Thailand or is a citizen/national/permanent resident of Canada, Chile, South Korea, New Zealand, Singapore or the United Kingdom
– The nominated worker is a current employee of a business that is an associated entity of the nominating business and the associated entity is located in an Association or South-East Nations (ASEAN) country (Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand or Vietnam), Canada, Chile, China, Japan, Mexico, South Korea, United Kingdon, New Zealand, Peru, Samoa, Tuvalu, Kiribati, Tonga, Solomon Islands, Niue, the Cook Islands or Vanuatu
– The nominated worker is an employee of an associated entity of the nominating business and that associated entity operates in a country that is a member of the World Trade Organisation (WTO) and the nominated occupation is an executive or senior manager occupation for the purpose of ITOs and the nominee will be responsible for the entire or a substantial part of the company’s operations in Australia
– The nominating business operates in a WTO member country or territory or Tuvalu, Kiribati, Niue or the Cook Islands and is seeking to set up a business in Australia and the nominated occupation is an executive or senior manager occupation for the purpose of ITOs
– The nominated worker is a citizen or eligible permanent resident of a WTO member country or territory and has worked for the business in the nominated position in Australia on a full-time basis for the last two years
Labour Market Testing ensures that Australian citizens and permanent residents are given the opportunity to attain employment before foreign workers are considered.
To learn more about Labour Market Testing or any other aspect of migration, contact the team of experienced registered migration agents at Visa Solutions Australia.
