How to Sponsor an Employee for Work in Australia: A Step-by-Step Guide

If your business is struggling to fill a role with local talent, sponsoring an employee from overseas can be a great solution. However, the process is highly regulated, requiring employers to meet strict eligibility criteria and follow multiple legal steps.

Understanding how to sponsor an employee properly is essential to avoiding delays, compliance risks, and unnecessary costs.

In this guide, we will cover:

What it means to sponsor an employee in Australia
The different visas that allow employer sponsorship
Step-by-step instructions on how to sponsor an employee
Common mistakes employers make when sponsoring workers
Ongoing employer obligations after sponsorship

If you need expert guidance on sponsoring an employee, schedule a free consultation with AIM Lawyers today.

What is Employer Sponsorship?

Employer sponsorship allows Australian businesses to hire skilled overseas workers when they cannot find suitable local candidates. Sponsorship is only available for specific occupations, and businesses must meet strict government criteria to qualify.

To sponsor a worker, a business must:

Become an approved sponsor by applying for Standard Business Sponsorship (SBS)
Nominate the worker for a visa that allows employer sponsorship
Ensure compliance with all government regulations regarding salary, employment terms, and work conditions

The most common visa used for employer sponsorship is the Temporary Skill Shortage (TSS) visa (subclass 482).

For a detailed breakdown of how employer sponsorship works, visit our Sponsoring an Employee page.

What Visas Allow Employer Sponsorship?

There are several Australian work visas that allow employer sponsorship. The most commonly used options include:

1. Temporary Skill Shortage (TSS) Visa (Subclass 482)

Allows employers to sponsor skilled workers for up to four years
Requires proof that no Australian worker is available for the role
Offers a pathway to permanent residency for certain occupations
Must meet the Temporary Skilled Migration Income Threshold (TSMIT)

2. Skilled Employer Sponsored Regional (Provisional) Visa (Subclass 494)

Allows employers in regional areas to sponsor skilled workers
Valid for five years and offers a permanent residency pathway
Requires the employer to be in a Designated Regional Area

3. Employer Nomination Scheme (ENS) Visa (Subclass 186)

Permanent residency visa for skilled workers nominated by an employer
Requires at least three years of relevant work experience
No requirement for Labour Market Testing (LMT)

Choosing the right visa for sponsorship is critical to ensuring a successful application. If you’re unsure which visa best suits your needs, speak with a migration expert today.

Step-by-Step Guide to Sponsoring an Employee in Australia

Step 1: Apply to Become an Approved Sponsor

Before you can sponsor a worker, your business must be an approved Standard Business Sponsor (SBS). This involves:

Submitting an application to the Department of Home Affairs
Providing proof that your business is actively operating in Australia
Demonstrating that you have a genuine need for skilled workers
Agreeing to meet all sponsorship obligations

Once approved, the business can nominate skilled workers for sponsorship.

Step 2: Check if the Position is Eligible for Sponsorship

The Australian Government has a Skilled Occupation List that determines which jobs can be filled by overseas workers. The lists include:

Short-Term Skilled Occupation List (STSOL) – Limited to two-year sponsorship with restricted permanent residency pathways
Medium and Long-Term Strategic Skills List (MLTSSL) – Eligible for four-year sponsorship with a direct permanent residency pathway
Regional Occupation List (ROL) – Specific to businesses in designated regional areas

To check if your job qualifies for sponsorship, visit our Sponsoring an Employee page.

Step 3: Meet Labour Market Testing (LMT) Requirements

Employers must prove that they have tried to hire an Australian worker first before sponsoring a foreign employee.

To meet Labour Market Testing (LMT) requirements, employers must:

Advertise the job for at least 28 days on government-approved job boards
Provide evidence of recruitment efforts and why no local workers were suitable
Ensure the job offer meets the market salary rate

Failure to meet LMT requirements can result in the visa nomination being rejected.

Step 4: Nominate the Employee for a Work Visa

Once the business is an approved sponsor, the employer must:

Submit a nomination application with details of the role
Ensure the salary meets the Temporary Skilled Migration Income Threshold (TSMIT)
Provide evidence that the position is genuine and necessary

Once the nomination is approved, the employee can apply for their visa.

Step 5: Employee Applies for Their Work Visa

The sponsored employee must meet certain eligibility requirements, including:

Holding the required qualifications and experience for the role
Providing a valid skills assessment (if required)
Completing a police clearance and medical check
Demonstrating English language proficiency

Visa processing times can take between 38 to 79 days, depending on the stream.

Employer Obligations After Sponsoring an Employee

After sponsoring an employee, employers must meet ongoing legal obligations, including:

Paying the market salary rate
Ensuring the employee only works in the nominated role
Keeping detailed records of employment
Reporting any significant changes to the Department of Home Affairs
Covering repatriation costs if the worker needs to leave Australia before the visa ends

Failure to comply with these obligations can lead to fines, visa cancellations, or bans on future sponsorships.

To avoid compliance risks, speak with an immigration lawyer today.

Final Thoughts

Sponsoring an employee in Australia is a great way to fill skill shortages, but it comes with legal obligations and strict government regulations. By following this step-by-step guide, employers can ensure a smooth sponsorship process while avoiding common pitfalls.

Need expert assistance? Book a free consultation with AIM Lawyers today.