A Guide for Employers Sponsoring Overseas Workers

Samantha Lo

LawyerAitken PartnersView Profile

Sponsoring overseas workers carries important legal obligations under Australia’s employer sponsored visa framework. Remaining up to date with these requirements helps employers maintain compliance, avoid sanctions, and support a smooth pathway for sponsored employees.

EMPLOYER-SPONSORED VISA OPTIONS IN AUSTRALIA

Australia offers several employer‑sponsored visa pathways that enable businesses to address skill shortages by engaging overseas workers.

Subclass 482 Skills in Demand (SID) Visa

The Subclass 482 Skills in Demand (SID) visa, previously known as the Temporary Skill Shortage (TSS) visa, allows employers to sponsor skilled workers for up to two or four years, depending on the occupation. Key requirements include:

• meeting the Temporary Skilled Migration Income Threshold (TSMIT)
• demonstrating that the nominated role is genuine and aligns with the approved occupation
• completing Labour Market Testing (LMT), unless exempt
• complying with sponsorship obligations throughout the worker’s employment

Subclass 186 Employer Nomination Scheme (ENS) Visa

For permanent residency pathways, employers may nominate workers under the Subclass 186 Employer Nomination Scheme (ENS) visa. Two streams are available:

• Temporary Residence Transition (TRT): for eligible 482 visa holders who have completed the required employment period with their sponsoring employer
• Direct Entry: for applicants who meet skill and experience requirements without prior 482 sponsorship

The TRT stream requires the occupation to be on the Medium and Long Term Strategic Skills List (MLTSSL) and all nomination criteria to be met. These pathways provide long‑term workforce stability while offering skilled workers a route to permanent settlement in Australia.

LABOUR MARKET TESTING

Labour Market Testing is a core requirement for most Subclass 482 nominations. It is designed to ensure that employers have made genuine efforts to recruit suitably qualified Australian workers before turning to overseas talent.

LMT Requirements

To satisfy LMT, employers must demonstrate that:

• Three advertisements were published
• Ads ran for at least 4 weeks
• Ads were posted within the 4 months prior to lodging the nomination
• Ads were targeted at an Australian audience
• Ads included:
• the job title
• skills/experience required
• salary range (unless annual earnings exceed AUD $96,400)
• business name or recruitment agency name
• location of the position

Acceptable platforms include:

• Workforce Australia
• SEEK
• Indeed
• LinkedIn
• Industry‑specific job boards

LMT Exemptions

Certain situations allow employers to nominate without LMT:

• The occupation is on the LMT exemption list
• The worker is a citizen of Japan, Thailand, or Chile, or holds certain international trade agreement nationalities
• The employer is operating under a Labour Agreement

Common Advertising Issues

Frequent compliance issues include:

• advertisements without salary information
• ads running for less than four weeks
• use of social media posts instead of formal job ads
• advertising on overseas job boards
• lodging the nomination more than four months after advertising

Failure to meet LMT requirements can result in nomination refusal, even if the candidate is highly skilled.

EMPLOYER SPONSORSHIP OBLIGATIONS

Salary requirements and TSMIT

Sponsored workers must be paid at or above the Temporary Skilled Migration Income Threshold (TSMIT). As at 1 July 2026, the TSMIT is $79,423. This ensures overseas workers receive fair remuneration and prevents undercutting of the Australian labour market.

Labour Agreement Exception: Some Labour Agreements allow a 10% TSMIT concession, particularly in regional or rural areas. These agreements are available to industries facing persistent skill shortages.

Adhering to the Approved Employment Terms

Once a nomination is approved, employers must ensure the sponsored worker is employed exactly in accordance with the terms submitted to the Department of Home Affairs. This includes:

• Hours of work
• Work location
• Duties and tasks aligned with the ANZSCO occupation
• Salary and employment conditions

These obligations operate in addition to the National Employment Standards (NES) and any applicable award or enterprise agreement.

Record-keeping requirements

Sponsoring employers must maintain accurate and accessible records to demonstrate compliance. These may include:

• Payslips
• Employment contracts
• Position descriptions
• Timesheets
• Evidence of payment of travel costs (if applicable)
• Evidence of labour market testing (for 482 visas)

The Department may request these records at any time as part of a monitoring or compliance audit.

WHAT HAPPENS WHEN CIRCUMSTANCES CHANGE

Employers must notify the Department within 28 calendar days if circumstances change, including:

• Early termination of employment
• Reduction in hours
• Significant changes to duties
• Changes to business structure
• Relocation of the employee to a different worksite

Timely notification maintains compliance and reduces the risk of penalties.

Understanding and meeting sponsorship obligations is essential for maintaining your status as an approved sponsor. If your business requires assistance with LMT evidence, nomination preparation, Labour Agreement eligibility, or permanent residency pathways, professional guidance can help ensure compliance and support your workforce planning.