The current skills shortage in Australia has been an ongoing labour force issue, causing many employers to seek individuals who aren’t permanent residents or Australian citizens, to fill in a vacancy within a business. When sponsoring an employee, there are a variety of factors that need to be considered that both the employer, and eligible nominee in order to continue on with the sponsorship process. Business Kitz have created this blog post, with all you need to know about sponsoring an employee.
What is sponsoring an employee?
When an employer sponsors an employee, they are essentially guaranteeing that they are hiring you and that you will be a legal, working resident in Australia and for their business. Whenever a business can show that a specific skilled occupation vacancy can’t be filled in, they are able to sponsor an employee under the TSS 482 visa. Sponsorship approval is dependent on various factors, and does not guarantee a positive outcome. It is important to note that various visa types for sponsorships have different requirements and implications, therefore each should be gone through thoroughly. The process may take up to a week to 2 months from the date of lodgement, without any guaranteed outcome.
What do employers need to demonstrate when they decide they want to sponsor an employee?
Whenever employers decide they want to sponsor an individual, they would have to show that, they as a business, have to demonstrate:
- A general business registration;
- That it is a lawfully operating business;
- It meets various training requirements;
- The business’ necessity to fill in the position;
- The terms and conditions of the nominee’s contract is consistent with Australian employees;
- That the position will pay the market salary rate;
- Taken efforts to fill in the position with an Australian citizen or permanent resident, such as by placing advertisement to fill in the role; and
- They comply with Australian immigration and workplace relations law.
What visas can be applied for by an employer?
As an employee that is seeking sponsorship, there are a variety of visa’s that could be applied for, such as:
- Temporary skilled shortage visa (subclass 482)
Considered to be the standard work visa, this visa would typically last for 2-4 years. Dependent family members could be included within this application, however the employee’s skills and occupations must meet the requirements of the required occupations. If the employee’s occupation is not part of the listed required occupations, it is still possible to obtain this visa as long as they show that they:
- Meet the skilled requirements of the required occupation;
- Meet registration and licensing obligations;
- Speak English language requirements; and
- Have been nominated by an approved business.
- Employer Nomination Scheme (subclass 186)
This visa needs to be applied for via nomination by an Australian employer, as it is considered as a permanent residence visa for skilled workers. An employee’s occupation for this visa needs to be on the skilled list of occupations, and they must have the relevant qualifications and work experience to match this. This would generally include whether they:
- Have been nominated by an approved Australian employer within the six months before they apply;
- Are generally under the age of 45 at the time of application, unless they are exempt;
- Have the necessary skills and requirements for the position;
- Have appropriate English language skills;
- Meet health and character requirements; and
- Meet the requirements of the stream in which they apply.
- Regional Sponsored Migration Scheme Visa (subclass 187)
This is a permanent resident visa for people who wish to work regionally in Australia. However, employee’s have to:
- Be nominated by an approved Australian employer for a job in regional Australia;
- Younger than the age of 45, unless exempt;
- Meet skills, qualifications, and requirements with English language;
- Meet health and character requirements;
- Meet the requirements in the stream in which you apply; and
- Have the required skills and qualifications at the time in which the application was lodged, holding any mandatory registration, license or professional membership.
What is the sponsorship process?
The specific requirements, processes and documents are all dependent on the type of visa an employer chooses.
Step 1: The employer needs to show that they cannot find a person in Australia to fill in their vacancy.
Step 2: The occupation they want must be on the list of eligible skilled occupations.
Step 3: Find a visa that suits the employee and their needs.
Step 4: Check that they themselves, in addition to their business are eligible to sponsor.
Step 5: Apply to become a sponsor.
Step 6: Nominate the occupation.
Step 7: Complete the visa application.
How much does the sponsorship process cost?
Becoming an approved sponsor under the TSS 482 visa program would typically cost around AU$420, however there are various price points for the different visas applied for.
Nominating a visa applicant for the TSS 482 visa would cost around AU$330, whilst nominating a visa applicant for the ENS 186 visa would cost around AU$540 (subject to stream and location). When nominating an applicant for the RSMS 187 visa, there is no application fee, however the skilling Australian Fund levy is payable. This is dependent on the size of the business and proposed period stay of the employee. The levy payments are tax deductible.
Legal advice
To conclude, sponsoring an employee takes time, effort and money to get through the entire process without any guaranteed outcome. Businesses have to often show first that a specific vacancy could not be filled in by a resident or citizen before moving forward. This is because the government prioritises residents and citizens first when it comes to employment, making it harder for international students or immigrants to stay and be permanently employed in Australia. If you need any assistance regarding sponsoring an employee, we can point you in the right direction. Book here NOW for a free 30-minute consultation.