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Is Labour Market Testing (LMT) required for Employer Nominated (subclass 186) Nominations?

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Labour Market Testing (LMT) requirements were recently amended in response to the COVID-19 pandemic by way of Legislative Instrument 18/036 to ensure the Australian labour market is always given priority ahead of skilled international workers.

Currently, Labour Market Testing is mandatory for Temporary Skill Shortage (TSS) (subclass 482) & Skilled Employer Sponsored Regional (SESR) (subclass 494) nominations.

Since this amendments our office has received many enquiries from business sponsors around Australia asking whether Labour Market Testing (LMT) is required for Employer Nominated (subclass 186) nominations via the Temporary Residence Transition (TRT) Stream and the Direct Entry (DE) Stream.

Our advice has been that although there is no legislative requirement obliging employers to undertake Labour Market Testing for the Employer Nominated (subclass 186) nominations the visa program does have a ‘Genuine Need’ provision which must be met.

The ‘Genuine Need’ provision relates to whether the business has a genuine need for the overseas worker taking into consideration the size and scope of the business, the position itself, the local labour market and other relevant factors.

Given the impact of the COVID-19 pandemic we are advising all employers to undertake Labour Market Testing to demonstrate that they have sought to find an Australian worker for the position by advertising the role on national platforms in an effort to demonstrate the ‘genuine need’ of the nominee.

Further information?

If you require any further information on sponsoring international skilled workers for your business, or are going through the visa process at the moment please do not hesitate to contact our office for tailored advice and representation.

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