Temporary Employer-Sponsored Visa Overview – options and process for employers

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With the upcoming introduction of the new employer-sponsored regional visa on November 2019, we thought it a great opportunity to give an overview of the employer-sponsored visa options for employers, and a quick summary of the processes and requirements.
 
With both these temporary employer-sponsored visas, there are two streams – Employer Sponsored and Labour Agreement. We will be discussing the employer-sponsored stream here and Labour Agreements (particularly DAMA agreements) in a future post.
 

Temporary Skills Shortage (TSS) Visa

Overview

  • Temporary employer-sponsored visa, up to 4 years duration
  • The TSS replaced the popular 457
  • Occupation chosen from two skilled occupation lists – the MLTSSL and STSOL
  • The employer must meet financial and trading requirements, pay a Skilling Australian Fund (SAF) levy
  • The position must be genuine and fit the scope/nature of the business
  • Visa applicant must meet (where applicable), work experience, educational qualification, English proficiency, skills assessment, character and health requirements. 

 

Process & Requirements

The TSS visa is a three-step process.
 

Step 1 – Standard Business Sponsorship Approval

  • Business applies to be a Standard Business Sponsor
  • Depending on the size and/or volume of intended TSS applicants to be sponsored, the business may also apply for accreditation, which can streamline future TSS visa applications
  • The main requirement is to demonstrate that the business is lawfully and actively operating
  • Sponsorship period valid for 5 years
     

Step 2 – Nomination of a Position

  • The proposed occupation needs to be on the relevant occupation lists – MLTSSL or CTSOL
  • Must be a genuine need for the proposed position and it must fit in with the scope/nature of the business
  • Labour Market Testing. Job advertising is undertaken by the employer for a minimum of 28 days over the 4 months preceding the application
  • Skilling Australians Fund (SAF) levy paid at this step ($1,200 – $1,800 per year depending on business turnover)
  • MLTSSL occupations give the future opportunity for visa holders to transition to a permanent employer-sponsored a visa (ENS). 
  • STSOL occupations do not provide a direct pathway towards a permanent visa. 
     

Step 3 – Temporary Skills Shortage (TSS) visa

  • The employee applies for a visa
  • MLTSSL occupations grant a visa of up to 4 years duration, STSOL occupations grant a visa for up to 2 years
  • Skills assessments are required for certain occupations, mostly trades from certain countries. Skills assessments for other occupations may be requested on a discretionary basis.
  • English proficiency, employment experience, educational and health/character requirements
  • Dependent family members (spouse, dependent children) may join the main applicant, dependent on health/ character requirements.
  • Genuine Temporary Entrant requirement – under policy no more than two TSS visas will be granted to an applicant whilst in Australia.

Commentary on TSS visa 

The TSS continues to be a solid option for employers to fill shortages within their organisations. Trades workers, engineering & medical professionals are among those with the greatest opportunity to progress to permanent visas, however, the visa remains a solid option for strictly temporary engagements of skilled employees.
We have noticed particularly in 2019 that TSS visa applications are being processed within efficient timeframes and we hope this continues into the new year.
 
 

Skilled Employer-Sponsored Regional (Provisional) Subclass 494 (SESR)

Overview

  • New provisional employer-sponsored visa to be introduced on 16 November 2019
  • Temporary employer-sponsored regional visa, replacing the Regional Sponsored Migration Scheme (RSMS) Subclass 187 visa
  • Similar features to the RSMS visa. Requires employer sponsorship, Regional Certifying Body advice, employment experience, English proficiency, market salary provision and skills assessments (where applicable)
  • 5-year visa, eligible for permanent residence after 3 years (dependent on various requirements)
  • 9,000 places allocated for 2019-20 financial year 

 

Process & Requirements

 
The SESR visa is a three-step process.
 

Step 1 – Standard Business Sponsorship Approval

  • Essentially same process as the TSS Standard Business Sponsorship approval process (see above) 
  • Additional sponsorship obligations are to be included in upcoming legislation.
     

Step 2 – Nomination of a Position

  • Position located in a regional area (all areas except Sydney, Melbourne and Brisbane)
  • The proposed occupation must be on the relevant occupation lists (673 occupations available)
  • Must be a genuine need for the proposed position and it must fit in with the scope/nature of the business
  • Labour Market Testing (as per TSS)
  • Regional Certifying Body (RCB) to provide advice on annual market salary rates.
  • Skilling Australians Fund (SAF) levy
  • Visa holders can transition to a Permanent visa after being employed with a sponsor for a minimum of 3 years, in addition to meeting other requirements.
     

Step 3 – Skilled Employer-Sponsored Regional (Provisional) visa (SESR)

  • The employee applies for a 5-year visa
  • Skills assessments are required for certain occupations, mostly trades. Skills assessments for other occupations may be requested on a discretionary basis.
  • English proficiency, employment experience, educational and health/character requirements
  • Dependent family members (spouses, dependent children) may join the main applicant, dependent on health/ character requirements.
  • No Genuine Temporary Entrant requirement 
  • Eligible for Medicare once visa approved 
     

Commentary on SESR visa 

The new regional employer-sponsored visa appears to be a more regulated version of the Regional Sponsored Migration Scheme (RSMS) Subclass 187 visa. The expanded definition of ‘regional area’ will be attractive for many employers, and the extensive occupation list will likely attract more visa applicants.
 
Priority processing for the SESR has been promised, so hopefully, this provides greater responsiveness to the needs of regional employers. More information can be gleaned on this SESR visa commentary
 
 
Should you require assistance with a new regional visa, please contact Konnecting on 1300 131 131 (Inside Australia) or +61 2 8252 2500 (Outside Australia). Alternatively, feel free to take our free visa assessment:
 
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Published on: 26/10/2019

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