How to Sponsor an Employee for a Work Visa or Permanent Residency

If you are struggling to find employees locally in Australia, you may have to look overseas and sponsor an overseas worker.

There are a number of shortages of workers in Australia, particularly those with certain qualifications, experience, and skills. If a business is unable to fill a vacancy with a local worker, they can sponsor someone to move to Australia from overseas to work for them. There are a number of pathways to employment.

The main visa types available include:

How Can a Business Sponsor an Overseas Employee on a Work Visa?

The process for a visa can be very stressful, requiring detailed paperwork and plenty of it. However, being prepared, knowing what to expect, working together with the potential employee, and applying with plenty of time should remove a lot of the stress.

Each visa has a slightly different process, so the business will need to choose the correct visa and spend time familiarising themselves with the specific pathway and paperwork required.

Business Sponsorship or Labour Agreement

First, the business needs to be aware of the sponsorship obligations. If the business is already an approved sponsor, a specific labour agreement and sponsorship application for each individual application is not required. However, if this is the first time bringing in an overseas worker, the business will need to create a sponsorship approval or labour agreement and submit it to the Department of Home Affairs. They will advise if it meets specified requirements.

A sponsorship agreement needs to outline the business obligations specified in Division 2.19 of the Migration Regulations. This includes things such as:

• Keeping records of pay information, terms and conditions of employment, and tasks performed by the employee

• Keeping records showing employee has complied with training requirements

• Providing all information to relevant government agencies upon request

• Ensuring the employee works in the role they were hired for

• Providing information to immigration if certain events occur, such as a resignation or relocation

• Paying travel expenses for sponsored workers to leave Australia

• Ensuring no discriminatory recruitment practices

• Not recovering costs unless authorised. For example, the business cannot ask visa holders to pay their costs for sponsorship or nomination

If any obligations are not met, penalties can be issued, and details of infringement published. The business must be very thorough to get a full understanding of obligations and outcomes of non-compliance.

A labour agreement is slightly different, and there are five types to choose from:

• Company specific labour agreements

• Designated Area Migration Agreements (DAMA)

• Project agreements

• Global Talent Employer Sponsored (GTES) agreements

• Industry labour agreements

These are slightly more flexible, enabling employers to sponsor suitable applicants in line with the specific agreement. The DAMA agreement, for instance, allows access to more overseas workers than other skilled migration programs, and scope to adjust to individual regions unique circumstances and conditions.

Nominate

Once the agreement or sponsorship is in place, the business can start the nomination process. This has a range of key requirements, such as:

• Labour market testing to show the employer cannot find a suitably qualified and experienced Australian worker

• Nominating the relevant occupation on the skills list

• Demonstrating the position is genuine

Visa Application

The business and the potential employee need to work together to prove they meet the criteria set out for the role and therefore should be granted a visa. This can include things like their job specific qualifications and work experience to perform the role. This also includes generic requirements for Australian visas, such as English competency and meeting any relevant age thresholds.

Working Visa Types in Australia

There are different visas for different scenarios. The visa type applied for depends on the business requirements and where the role sits in immigration skills shortage lists.

Temporary Skill Shortage Visa Subclass 482

This temporary visa allows the potential employee to live and work in Australia for up to four years, depending on which stream they fall under. After two years, they can apply for permanent residency if they meet requirements. There are three stages in the TSS visa application:

• The business, as the sponsoring employer, applies for (and is approved as) a sponsor. Alternatively, the business can enter into a labour agreement with the government. To do this, the business must be operating lawfully in or outside Australia, with no adverse information known to the immigration department.

• Then, nominate the potential employee for the role in the business. This role must be on the skilled occupation list or labour agreement. The employee may be required to get a positive skills assessment, and the business may have to provide evidence of labour market testing to prove the genuine need.

• The potential employee must apply for their visa, ideally lodged simultaneously with the employer application. They must have all minimum qualification, and a minimum of two years skilled employment experience.

There are three TSS visa streams to apply under.

• Short term stream (STOL) for occupations on the short-term skilled occupation list (STOL)

• Medium term stream (MLTSSL) for roles on the medium and long term strategic skills list

• Labour agreement scheme

For all of these, the business will need to pay a training levy, in addition to the application lodgement fee.

Employer Nomination Scheme Subclass 186

This permanent visa allows employers to nominate potential employees. There are two streams:

• Temporary Residence Transition (TRT) which requires the worker to have a subclass 482 visa and to have worked for the business for at least two years already

• Direct entry, which provides immediate permanent residency

The employer must submit two applications, one for the nomination and one for the visa. The requirements vary according to the stream and role, but they could include:

• The employee must be under 45 years of age

• Depending on the role, a skills assessment may be required

• They must meet minimum English language standards

• The occupation must be on a skilled occupation list or labour agreement

• The employee must have minimum qualifications and employment experience

Skilled Employer Sponsored Regional (Provisional) Visa Subclass 494

This provisional visa can be for up to five years, but can also be used to apply for PR after three years. The role must be located in a designated regional area, and on a skilled shortage list.

There are two streams, the labour agreement stream and the employer sponsored stream. For the employer sponsored stream, there must be a few conditions met, which include:

• The employer must be an Australian business who is an approved sponsor

• The business must be able to demonstrate that the full-time role is genuine and will exist for five years

• The employee must have a written contract of employment

• The role must be in a designated regional area of Australia

• The occupation must be on the relevant skilled occupation list

• Labour market testing must show an inability to fill the role locally

• The salary must be the same or greater than the temporary skilled migration income threshold

• A regional certifying body must confirm the new employee will be paid at least the annual market salary rate

• A ‘skilling Australia fund levy’ of $3,000 (if your business turnover is lower than $10 million) or $5,000 (over the $10 million threshold) is payable

• Terms and conditions of employment must be the same as for any Australian employee

The labour agreement stream has additional requirements:

• The applicant must be less than 45 years old

• Depending on the role, a skills assessment may be required

• They must meet minimum English language standards

• The occupation must be on the regional skilled occupation list or labour agreement

• The employee must have minimum qualifications and employment experience of three years

Australian Labour Agreements

Labour agreements enable Australian businesses to sponsor skilled overseas employees when there is evidence the need is currently not met within the existing Australian labour market. These only apply when other visa types are not applicable—they are considered to be the exception to be used in limited scenarios.

Company Specific Labour Agreement

A company specific labour agreement is to be used when:

• A genuine skills need is not covered by an existing labour agreement

• A DAMA/ project agreement isn’t in place

• The occupation isn’t covered under standard skilled visa programs

Designated Area Migration Agreement (DAMA)

A DAMA is a special type of labour agreement between the state or territory government and the commonwealth. It enables employers to sponsor skilled or semi-skilled workers to be employed in a specific regional area.

The DAMA is a five year agreement is executed between the commonwealth government and the region’s designated area representative. The DAMA contains a number of different occupations, as well as terms and conditions for visa criteria. Businesses in the region can then:

• Apply for endorsement from the designated area representative

• Lodge an individual labour agreements under the DAMA terms and conditions

• And nominate and sponsor semi or highly skilled overseas workers for their roles

Project Agreement

These project agreements are designed to be used by project companies to fill vacancies in construction or infrastructure projects. The business must create a deed of agreement with the department before creating individual labour agreements together.

Global Talent Employer Sponsored Agreements

The GTES program is designed to allow highly skilled niche overseas workers to work in Australia. Its focus is bringing globally mobile, specialised, and skilled workers, filling critical areas of need.

Industry Agreement

Specific industries have needs, and an industry agreement is designed to fill ongoing labour shortages. The following industries can utilise this type of agreement:

• Advertising

• Aged Care

• Dairy

• Fishing

• Horticulture

• Meat

• Minister of Religion

• On-hire

• Pork

• Restaurant (premium dining)

Accredited Sponsor

Accredited sponsors are low-risk businesses who has a long history of positive dealings with the immigration department. If the employer has previously lodged a high volume of high-quality applications that are complete, thorough, and compliant, they may be able to become an accredited sponsor. This means they get priority processing for visas 482 and 494, with most processed within five days.

Be Thorough and Don’t Rush It

While it can be a complex process, if followed logically and thoroughly, it is possible to do this without stress. Ensuring there’s sufficient time for all application processes is important and allows time for re-submissions of any missing or incomplete documents. With the attention to detail and volume of work required, the added pressure of tight time constraints could result in a negative outcome.

These visa types and agreements exist because the government acknowledges a genuine need exists. It’s important that businesses have the employees they need to complete their work and continue to contribute to the economy. Work alongside the immigration department to achieve the best outcome, and bring in the essential overseas worker that allows the business to thrive and grow.