The state of employer sponsorship: no need to grind it out

As 189 and 190 invitations become increasingly competitive, does a migration pathway that doesn’t require a points score, doesn’t require an IELTS 8, and doesn’t involve queuing sound like a daydream? In fact, such a pathway has always existed — employer sponsorship.

Unlike independent skilled migration or state nomination, the core of employer sponsorship hinges on the employer’s operating position and the applicant’s work experience. Work experience therefore replaces the migration points score as the most important requirement in this category. For anyone with relevant qualifications and work experience, employer sponsorship is a more direct and more suitable migration option.

Let’s look at the 20-21 migration program outcome report. Among the visas granted under employer sponsorship, the top ten occupations include IT (two slots), Accounting, Head Chef, Nursing and Motor Mechanic — all common professions. On one hand this reflects Australia’s priority treatment of these roles; on the other it shows strong employment prospects in these industries.

Employer-sponsorship applicants: each group has its own strengths

If you’re in a popular profession such as IT or Accounting, the 189/190 congestion means many people end up taking on relevant work experience and accumulating it while waiting for an invitation. Without even realising it, they’re gradually meeting the employer-sponsorship requirements too — making it a viable plan B.

If you’re a chef, motor mechanic or similar trade, relevant work is itself one of the skills-assessment requirements, so you can kill two birds with one stone and transition into employer sponsorship. And compared with 189/190, the English requirements for employer sponsorship aren’t too high.

For roles such as nursing or university lecturer, employers tend to be strong institutions (hospitals, universities, etc.), giving an edge on the approval side. These occupations are also among the most favourable for processing.

There are opportunities and advantages — so what about the requirements?

Today we focus on: the core requirements of the 482 TSS visa and the 186 permanent-residence visa!

482 occupations on the medium- and long-term list can transition to PR

The 482 Temporary Skill Shortage Visa — commonly known as the employer-sponsored work visa — comes in two main streams: Short-Term and Medium-Term (Labour Agreement stream aside). Which stream applies depends on the applicant’s occupation. Holders of a Medium-Term 482 can, once eligible, apply for the 186 employer-sponsored visa and obtain PR.

482 — the Department of Home Affairs mainly looks at the employer

The employer must first obtain standard business sponsor accreditation, then nominate the applicant, and finally the applicant lodges the visa.

Employer sponsorship does not normally impose highly specific requirements on employers, but that doesn’t mean the bar is low. For the sponsoring employer, the Department of Home Affairs mainly examines whether the sponsorship need is genuine and necessary, which can be assessed through the following:

1. Only a company with a healthy financial position and real growth potential can convincingly demonstrate to the case officer that it needs to sponsor an employee from overseas. The employer therefore needs to provide evidence of its trading performance, financial position and internal staffing structure, to show that sponsoring an overseas employee is necessary for the company’s current development.

2. The case officer will also consider the employer’s organisational structure, core business activities and similar factors to assess, holistically, whether there is a genuine need for the nominated position. The nominated occupation should align with the employer’s main business.

For example, a sponsored accountant should be sponsored by an accounting firm or a sizeable enterprise, not by a restaurant, café or similar employer whose business is not closely related to accounting.

3. In addition, some occupations carry extra caveat requirements on the employer — for example the employer’s annual turnover, number of employees, mode of operation, the specifications of the business premises, the employee’s annual salary, and so on.

For the Accountant occupation, for instance, the caveat requires the employer to have an annual turnover of at least AUD 1 million and at least 5 employees.

Most 482 applicants don’t need a skills assessment — work experience is the test

Age: the 482 work visa itself has no age limit, but the subsequent transition to PR requires the applicant to be under 45.

English: the Short-Term 482 requires an overall score of at least 5 with no band below 4.5; the Medium-Term 482 requires an overall score of at least 5 with no band below 5. The English bar is not high, which is friendly to applicants who have strong work skills but limited time to prepare for English tests.

Work experience: the applicant must have at least 2 years of work experience in the nominated occupation within the past 5 years, on a full-time or fixed part-time basis.

Skills assessment: for most occupations a skills assessment is not compulsory — the applicant only needs to demonstrate sufficient skills through relevant qualifications and work experience. However, for certain occupations and certain applicant nationalities, a 482 skills assessment is required and must be completed before lodgement.

The most common example we see is Chinese-national chef applicants. In addition, if a nominated occupation requires registration to practise in Australia, registration must be completed first.

If you want to know whether your occupation has a caveat requirement and what the requirement is, consult a professional migration adviser so you don’t jeopardise your visa application.

186 — a direct path to PR — how does it differ?

The 186 (Employer Nomination Scheme) visa is the permanent-residence visa under employer sponsorship. It has two streams: 186 TRT and 186 DE, with 186 DE being a one-step PR pathway.

Unlike the 482, the 186 application has only two steps: the employer nominates the applicant, and the applicant lodges the visa.

Different 186 streams impose different requirements on the employer and the applicant.

186 places higher and more detailed demands on employers

The 186 does not impose very rigid or fixed requirements on sponsors (employers) either. Overall, however, the following conditions apply:

– A genuine, long-established employer — in operation for no less than one year, with an employee headcount that isn’t too small.

– The company’s annual turnover should reflect income commensurate with its size. Naturally, the higher the annual turnover, the more clearly it demonstrates the employer’s financial strength.

– The company cannot be loss-making — it must demonstrate profitability. A company with a solid profit position can more convincingly establish the genuine need to sponsor an overseas employee.

– The ratio of Australian citizen / PR employees to foreign employees. In practice, a higher proportion of local employees helps demonstrate the genuineness of the sponsorship — in other words, that the company is primarily staffed by locals and genuinely wants to sponsor the applicant because of their capabilities.

– For certain occupations, the employer’s turnover and headcount must meet strict additional requirements — the caveat requirements.

A common example: for employers sponsoring Accountants the additional caveat requires an annual turnover of more than AUD 1 million and no fewer than 5 employees.

– In general, the 186 DE imposes stricter and more demanding requirements on the employer than the TRT stream.

186 TRT and DE each suit different situations

Pathway 1: 482 to 186 (186 TRT)

To transition from the 482 to the 186 TRT, the applicant must work for their sponsoring employer for 3 full years while holding the 482 visa.

For example, for applicants who can’t reach 4 × 7 in English, have missed the Professional Year opportunity and therefore can’t obtain an Accounting skills assessment, the 482-to-186 route offers a way around the skills assessment to obtain PR.

Of course, to substitute for the skills assessment, the applicant still needs to provide relevant qualifications and work experience to show they are capable of performing in the nominated role.

Pathway 2: the one-step PR 186 Direct Entry (186 DE)

If you have 3+ years of full-time experience in the nominated occupation and have a willing, eligible employer, you can consider applying for the one-step 186 DE directly. The applicant must hold a skills assessment for an occupation on the medium- and long-term list, and the critical 3-year work experience must meet the following:

– Three years or more of work experience — at least three 52-week periods.

– The experience must be in the nominated occupation — i.e. the occupation confirmed by the skills-assessment outcome.

– Full-time work experience: more than 38 hours per week at a skill level that meets the requirements of the role.

The 3-year experience requirement for 186 DE can be accumulated — for example 18 months at one company followed by 18 months at another can combine to meet the requirement.

Because the 186 delivers PR, its processing and requirements are inevitably stricter. We strongly recommend having an experienced professional adviser evaluate your case.

Popular occupations — nominations and visas granted quickly recently

Client S, commerce background, Accountant role, employer not an accounting firm. Lodged 482 employer sponsorship in April 2020 after reaching 2 years of work experience; visa granted July 2020. During that period, completed an accounting course and reached 4 × 7, and finished the skills assessment. In June 2021, lodged the 186 after reaching 3 years of experience; 186 nomination approved on 25 August; awaiting visa grant after submitting the police clearance.

Ms L, a purely offshore applicant, secured PR for her family of three. With many years of overseas work experience, she worked through skills assessment, English, and securing an Australian job — we thank her for the trust and cooperation throughout. Employer nomination and visa were both approved on 14 September 2021!

Secondary School Teacher — 482 employer-sponsored visa approved smoothly. Secondary School Teacher is on the medium- and long-term list, so the client can later apply for a 186 PR.

Mr Z, occupation 262112 ICT Security Specialist, family application — nomination and visa both approved without any request for further information.

Mr Z, Chef role: 482 employer-sponsored work visa nomination approved in just two business days, on 13 September 2021.

Finally, let’s answer some questions that often come up during actual applications.

★ Q1: Does the work experience for the 482 have to be full-time?

The work experience before lodging a 482 can be full-time or fixed part-time. Casual work without fixed hours doesn’t count as work experience, and internships and volunteering don’t count either. Full-time work should be no less than 38 hours per week; fixed part-time hours can be converted proportionally. For the specific calculation, please contact our professional advisers.

★ Q2: How can 186 work experience be accumulated? Does work experience during a student visa count?

Generally, the ideal approach is to use the 485 visa period to accumulate 2 full years of full-time experience and then apply for the 482. Then, during the 482, either accumulate another year of experience and apply for the 186 directly, or work 3 years for the employer during the 482 and transition to the 186.

Some applicants extend onto a further student visa after their original visa ends. Work experience during a student visa — capped at 40 hours per fortnight — has to be converted proportionally. The principle is that working hours must be on fixed attendance dates and no less than 20 hours per week.

The specific calculation is detailed — feel free to DM us for a thorough consultation.

★ Q3: Direct 186 or 482-to-186 — how to choose?

The choice between applying for the 186 directly or going 482-to-186 depends not only on the applicant’s specific circumstances but also, to a large extent, on the employer’s overall strength and willingness.

If the applicant meets the direct-application requirements, and the employer is strong and able and willing to sponsor a 186 directly, that is of course the ideal scenario.

If the applicant cannot obtain a skills assessment, or the employer is only in a position to sponsor a 482 for now / is more willing to sponsor a 482 and then transition the applicant after three years, the 482-to-186 route is the better fit.

If you have any other questions about employer sponsorship, DM us and we’ll analyse your specific circumstances and plan the most suitable pathway for you.