Labour market testing (LMT) is a mandatory government requirement for some visa categories to ensure employers try to hire local workers before seeking temporary 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.
Labour market testing generally involves advertising the position in Australia for at least four weeks on platforms with national reach. Business sponsors (employers) must provide evidence to the Department of Home Affairs that they are unable to fill the specific position within their business by an Australian worker. For detailed information about labour market testing visit The Department of Home Affairs website.
Mandatory But Some Exemptions Apply
While labour market testing is mandatory, there are circumstances where some exemptions apply.
Labour market testing is not required where Australia has waived this requirement under its international trade obligations (ITO).
Citizens, nationals or permanent residents of the following countries may be exempt from the labour market testing requirement under an ITO depending on the specific circumstances and trade agreement:
- Brunei
- China (excluding Hong Kong, Macau, and Taiwan for general citizens, but special conditions may apply)
- Japan
- Malaysia
- Mexico
- Peru
- Thailand
- Vietnam
- United Arab Emirates (New exemption under CEPA for eligible business categories)
- United Kingdom
The LMT exemption also applies to the citizens, nationals, or permanent residents of:
- Canada
- Chile
- New Zealand
- Singapore
- South Korea
Exemptions do not automatically apply just for being a citizen or national of any of these countries. These exemptions only apply when the labour market testing requirement conflicts with Australia’s obligations under a specific international trade agreement.
Other circumstances where labour market testing exemptions apply include:
- 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
These exemptions do not apply to labour agreements. The labour market testing requirements for the labour agreement stream can often be different to those of the Skills in Demand (subclass 482) and the Skilled Employer Sponsored Regional (subclass 494) visas.
Given the complexity of the rules and their tendency to change in line with the introduction of new trade agreements, it’s important that employers seek professional advice in relation to labour market testing and applicable exemptions. Visa Solutions Australia has many years of experience assisting employers with hiring overseas workers. They have the knowledge and expertise to assist business sponsors with employing overseas workers.
To learn more about labour market testing or any aspect of migration, contact the team of experienced registered migration agents at Visa Solutions Australia. Book a consultation
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