To successfully nominate a worker for the Subclass 186 Employer Nomination Scheme (ENS), an employer must act as a compliant sponsor. The Department of Home Affairs maintains rigorous standards to ensure the business is viable and the employment arrangement is legitimate.

1. Core Employer Obligations

Before lodging a nomination, your employer must meet several foundational requirements to demonstrate they are a responsible sponsor:

• Active and Lawful Operation: The business must provide evidence that it is currently operating lawfully in Australia.
• Capacity and Viability: The employer must demonstrate that the business is financially sound and has the capacity to employ the worker in the nominated position for at least two years.
• Compliance with Workplace Laws: The business must have a clean record of compliance with Australian immigration and labor laws. This includes adhering to Fair Work regulations regarding wages and working conditions.
• Direct Control: The employer must have direct control over the position and the worker’s daily activities. Third-party labor hire arrangements may face stricter scrutiny.

2. The “Genuine Position” Requirement

This is the most critical hurdle. The Department of Home Affairs performs a “Genuine Position” test to ensure the role is not created solely to secure a visa.

• Actual Need: The employer must prove that there is a genuine, documented business need for the position.
• Consistency: The duties of the role must align with the nominated ANZSCO occupation code. If the job description is fabricated or does not match the actual work being performed, the nomination will likely be rejected.
• Ongoing Availability: The position must be full-time and reasonably expected to remain available for at least two years from the date of the visa grant.

3. Mandatory Financial Contributions

The employer is legally obligated to bear all costs associated with the sponsorship. Transferring these costs to the visa applicant is a serious breach of Australian law.

• Skilling Australians Fund (SAF) Levy: Employers must pay this mandatory training contribution at the time of nomination.
  • Small Businesses (Turnover < $10M): $3,000
  • Other Businesses (Turnover ≥ $10M): $5,000
• Nomination Fees: All administrative fees for lodging the nomination must be covered by the employer.
• No Cost-Shifting: Any agreement—verbal or written—where the employee pays for, or contributes to, the SAF levy or nomination fees is illegal and can lead to visa cancellation and heavy civil penalties.

4. Market Salary Rate Standards

To protect the local labor market, the employer must ensure the nominated worker receives “fair pay.”

• Market Rate Parity: The employer must pay a salary that is no less than what an Australian citizen or permanent resident would earn in the same role in the same location.
• Threshold Compliance: The salary must meet the relevant income thresholds (such as the Core Skills Income Threshold) to ensure the position is considered skilled and properly compensated.