Employer Nomination Scheme (Permanent –Subclass 186)

Employer Nomination Scheme (Permanent –Subclass 186)

The Employer Nomination Scheme visa (subclass 186) is for skilled workers who want to work in Australia and is part of the Permanent Employer Sponsored Visa programme.

The permanent employer nomination scheme (ENS-Subclass 186) allows employers to sponsor highly skilled foreign workers who are currently in Australia on a temporary basis or located outside of Australia for permanent residence to fill vacancies in their business. This visa involves a two-step process, firstly, nomination by an approved Australian employer and then an application under the nominated stream.


This visa category is made up of 3 streams:

  1. Direct Entry Stream is for applicants who are untested in the Australian labour market, or have not held a subclass 457 visa for at least 2 years out of the last 3 years with their nominating employer or who are applying directly from outside Australia.
  2. Temporary Residence Transition Stream is for subclass 457 visa holders who have worked for their employer for at least 2 years out of the last 3 years in the nominated position with their nominating employer, and the employer wants to offer them a permanent position in that same occupation.
  3. Agreement Stream is for applicants who are being sponsored by an employer through a tailored and negotiated labour agreement.

DIRECT ENTRY STREAM

Nominated Occupation
For this stream, the nominated position must correspond to an occupation in the Consolidated Sponsored Occupation List. Please see the list on the department’s website:
http://www.immi.gov.au/Work/Pages/skilled-occupations-lists/skilled-occupations-lists.aspx 
The position must be full time, ongoing and available for at least two years.

Market Salary Rate
Nominating employers must show that they will provide no less favourable terms and conditions of employment to the nominee that they would to an equivalent Australian in their workplace in the same location. This is known as the “market salary rate”. The market salary rate can be demonstrated by providing a common law contract of the Australian if there is an Australian performing equivalent work in the workplace. If the terms and conditions of the Australian performing equivalent work are directly set by an industrial instrument, such as a modern award or enterprise agreement, then this may be used to demonstrate the market salary rate. If there is no Australian performing equivalent work in the workplace, the evidence to prove market salary rate can be data from remuneration surveys, published earning data or similar job advertisements.

Training Requirements
If the business has been operating in Australia for 12 months or more, you must be able to demonstrate that you meet the prescribed benchmark below for the training of Australians.

  • Training benchmark A: recent expenditure equal to at least 2 per cent of the payroll of the business in payments allocated to an industry training fund that operates in the same industry as the business and a commitment to maintain that level of expenditure for the term of approval as a sponsor
  • Training benchmark B: recent expenditure equal to at least 1 per cent of the payroll of the business, in the provision of training to employees of the business. The expenditure must be expenditure that can count towards the benchmark

If the business has been operating for less than 12 months, you must be able to demonstrate that you have an auditable plan to meet the training benchmark.

Visa criteria

  • The applicant must be less than 50 years old at the time of visa lodgement, or be exempt from additional criteria
  • A satisfactory skills assessment from must be provided from an Australian assessing authority which is specified for the nominated occupation.
  • At least 3 years of post-qualification work experience is required in the nominated occupation.
  • Competent English required unless exempted. Competent English is equivalent to an IELTS 6 on each of the components. IELTS is valid for 3 years.

TEMPORARY RESIDENCE TRANSITION STREAM

Under this stream, it’s for the sponsor has sponsored the applicant for a Temporary Work (Skilled) visa (subclass 457):

  • The employee must have worked in the same nominated position in the sponsor’s business on a Temporary Work (Skilled) visa as a primary visa holder, for at least two years before the nomination is made.
  • The nominated position must be full time, ongoing and available for at least two years
  • The sponsor must have met the subclass 457 visa training requirements in each year of standard business sponsor approval.


Visa criteria

  • The applicant must be less than 50 years old at the time of visa lodgement, or be exempt from additional criteria
  • Vocational English required unless exempted. Vocational English is equivalent to an IELTS 5 on each of the components. IELTS is valid for 3 years.

The current processing period for DRE and TRTS is 3 – 6 months.

LABOUR AGREEMENT

A labour agreement is a formal agreement between an Australian employer and the Australian government which allows for the recruitment of a specified number of skilled workers from overseas in response to identified skills shortages in the Australian labour market. A labour agreement is designed to ensure that overseas recruitment supports the longer term improvement of employment and training opportunities for Australians. Employers are required to make commitments to the employment, education, training and career opportunities of Australians as part of the agreement.

Employer requirement

An employer wishing to enter into a labour agreement will be asked to provide information including:

  • The background of the company
  • The benefits the agreement will provide to Australia
  • The types of occupation and skill level sought
  • Evidence of skills shortage
  • The level of English language skills required to perform the work
  • Salary and work conditions
  • The employer’s training program


The negotiation period for a labour agreement can be around 6 months. The agreement comes into effect when it has been signed by all parties involved with the negotiations and is typically valid for three years.

Visa criteria

  • If required, the applicant must hold, or be eligible to hold, the relevant registration, licence or membership, at the time of 186 visa application.
  • The position to which the visa application relates must be the position nominated by an employer under a current labour agreement to which the employer is a party. The nomination relating to the visa application must have been approved and have not subsequently withdrawn.
  • The position must continue to be available to the visa applicant.
  • The terms and conditions applicable to the position must be no less favourable than the terms and conditions that are or would be provided to an Australian staff for performing equivalent work in the same workplace.
  • The applicant must be under 50 years old at the time of application unless the labour agreement states that persons who have turned 50 may be employed.
  • The applicant must satisfy qualification, skills and other attributes requirements specified in the labour agreement.
  • The applicant must have English language ability is specified in the relevant labour agreement.

People who are in working in Australia as the holder of a subclass 457 visa that was granted under a Labour Agreement can still apply for, and be granted permanent residence through the ENS. Two options for this:

  • They can apply through the Agreement stream of the ENS if their employer’s Labour Agreement offers a permanent residence option; or
  • Their employer can nominated them through the Direct Entry stream of the ENS.

 

 

 

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