AUSTRALIA EMPLOYERS NOW FEELING THE EFFECT OF CHANGES IN VISA SUBCLASS 457 WHICH NOW TAKES MINIMUM OF SIX WEEKS AND NOW EMPLOYERS TURNOVER CAPACITY TO PAY HIGHER SALARIES SCALE OF BUSINESS RECENTLY LAID OF WORKERS AND IF WORKERS FIT THE NEED OF EMPLOYERS ARE BEING CONSIDERED August 9, 2013 On July 1, 2013, Australia implemented several changes to its Temporary Work (Skilled)(Subclass 457) visa program, including tougher visa criteria and increased compliance monitoring for the program. Since July 1, the Department of Immigration and Citizenship (DIAC) has issued additional guidance on the changes, and employers have begun to see their effect. Perhaps most notably, processing times for 457 applications are currently averaging around four to six weeks, far longer than the previous average processing time of one to two weeks. Transitional Measures for 457 Applications Submitted Before July 1 When they took effect, the new subclass 457 rules applied retroactively to cases submitted but not decided by July 1. However, DIAC has since announced that certain prior rules will remain in effect for applications that were pending on July 1. Applications filed before July 1 can still benefit from an exemption from the 457 program’s English language requirements based on their occupation. The English language proficiency exemptions were curtailed by the July 1 changes following concerns of potential misuse of the English language salary exemption. The exemptions were cut back also to ensure that the subclass 457 program’s language requirements are consistent with last year’s changes to employment-based permanent residence programs. In practice, these changes are expected to result in more 457 visa applicants having to sit for language proficiency tests. Similarly, new rules that mandate a skills assessment for foreign nationals nominated in program and project administrator and specialist manager occupations apply only to applications that were submitted on or after July 1. Tougher Standards, New Integrity Measures for Subclass 457 Cases The new genuineness test for subclass 457 nomination applications – designed to ensure that an employer’s nominated occupation relates to a position that will address skill shortages in Australia – is having the greatest impact on employers who have had workforce reductions in the past. Under the new test, DIAC assesses whether a position genuinely fits within the nominated occupation, the scope of the position’s activities, the scale of the employer’s business, and whether the salary level is consistent with that paid to other workers in the occupation. Using the new standard, DIAC will consider whether an employer who has laid off workers has a genuine need to fill the positions related to their nominated occupations. New employment contract requirements – which were designed to reinforce new restrictions on placing 457 visa holders at the worksites of unrelated businesses – are adding to the time necessary to prepare Subclass 457 cases. Market salary evidence is now required for positions with salaries under AU$250,000 (previously AU$180,000), which means cases for more highly paid workers will take longer than they had in the past. The 457 program’s Temporary Skilled Migration Skilled Income Threshold (TSMIT) increased to AU$53,900, from AU$51,400.
Posted on: Mon, 12 Aug 2013 01:58:39 +0000
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