What is Labour Market Testing?

Implemented in November 2013, the Labour Market Testing requirement tasks standard business sponsors to test the local labour market before hiring an overseas worker for nominated position.

The purpose of the Labour Market Testing is to ensure that available job opportunities are provided to the local workforce first before looking to sponsor an overseas individual to fill the role required.

What do you need to do to meet the Labour Market Testing Requirement?

Standard business sponsors need to record efforts and attempts to hire local Australian citizens or permanent residents.

The recruitment activities need to be sufficient to justify that the local workforce cannot fulfil the requirements of the nominated position due to the lack of skills, qualifications or relevant work experience.

The Labour market testing must have been undertaken within twelve months prior to lodging a nomination if lodged before 18 March 2018. If your application is lodged after 18 June 2018 LMT must be undertaken within 6 months.

Advertising of the nominated position must meet all of the below:

  • The advertisement was in Australia, in English and included the following information:
    • the title, or a description, of the position -- multiple positions in one advertisement are 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 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 and
  • The posting of 2 job advertisements.
    • on a prominent or professional recruitment website with national reach (for example jobactive.gov.au) that publishes advertisements for positions throughout Australia.
    • advertisements for the job must be run for 28 consecutive days
  • Advertisements including on websites, are expected to have run for at least four weeks.
    • Applications or expressions of interest for the advertised position must have been accepted for at least four weeks.
  • The details of dates, contents and expenses of the advertising.
  • Conducting interviews and tabulating the outcome of all applications for the advertised position.

Are there any exemptions to the Labour Market Testing requirement?

There are currently not alternative avenues for exemption from the Labour Market Testing for short or medium term.

Note: Occupation-based exemptions which were previously available under the Temporary Work (Skilled) visa (subclass 457) are not available under the TSS program.

Note: You can be exempt from Labour Market Testing due to International Trade Obligations (ITO).

International Trade Obligations (ITO)

An international trade obligation means a commitment made by Australia under an international trade agreement.

LMT is not required where it would conflict with Australia's international trade obligations, in any of the following circumstances:

  1. The worker you nominate is a citizen/national of China, Japan or Thailand, or is a citizen/national/permanent resident of Chile, Korea or New Zealand.
  2. The worker you nominate is a current employee of a business that is an associated entity of your business that is located in an Association of South-East Asian Nations (ASEAN) country (Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam), Chile, China,​ Japan, Korea or New Zealand.
  3. The worker you nominate is a current employee of an associated entity of your business who operates in a country that is a member of the World Trade Organisation, where the nominated occupation is listed below as an “Executive or Senior Manager” and the nominee will be responsible for the entire or a substantial part of your company's operations in Australia.
  4. Your business currently operates in a World Trade Organisation (WTO) member country and is seeking to establish a business in Australia, where the nominated occupation is listed below as an “Executive or Senior Manager” for the purpose of international trade obligations.
  5. The worker you nominate is a citizen of a World Trade Organisation (WTO) member country and has worked for you in the nominated position in Australia on a full-time basis for the last two years.

Note: Countries which are currently WTO members are listed on the WTO website.

Short-term Skilled Occupation list (STSOL) International Trade Obligations (ITO)

Under Australia's ITOs, you may be eligible to nominate a worker in the Short-term stream of the TSS visa with a duration of up to four years if:

  • The nominee is an intra-corporate transferee:
    • from a company based in a World Trade Organization (WTO) Member country or territory; and
    • is nominated in an 'Executive or Senior Manager occupation'; and
    • is a citizen of a WTO Member country or territory
  • The nominee is a citizen/national of China
  • the nominee is an intra-corporate transferee from a company based in Singapore and a citizen/national/permanent resident of Singapore
  • the nominee is an intra-corporate transferee from a company based in Thailand and a citizen/national of Thailand
  • your business currently operates in Thailand and is seeking to establish a business in Australia, where the nominated occupation is an 'Executive or Senior Manager occupation', and the nominee is a citizen/national of Thailand.

Note: You may be eligible to nominate a worker in the Short-term stream of the TSS visa with a duration of up to three years if the nominee is a citizen/national of Thailand.

When should I conduct the Labour Market Testing?

Labour Market Testing must have been conducted within the four months immediately before lodging a TSS 482 visa nomination. Evidence of Labour Market Testing must be presented at the time of nomination lodgement.

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