Labour Market Testing Under a Labour Agreement: Common Mistakes and How to Get It Right

If your employer is sponsoring you through a Labour Agreement, you’ve probably heard about Labour Market Testing (LMT). It’s one of the key requirements for visa nominations under many Labour Agreements, including DAMA (Designated Area Migration Agreement) arrangements. But what exactly does LMT involve, and what happens if the advertising doesn’t meet the requirements?

What Is Labour Market Testing?

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Labour Market Testing is the process of demonstrating that an employer has genuinely tried to recruit an Australian citizen or permanent resident for a position before nominating an overseas worker. This typically involves advertising the position on approved platforms for a specified period before the nomination is lodged.

For standard employer-sponsored visas (like the Subclass 482), the LMT requirements are set out in the Migration Regulations. However, for positions nominated under a Labour Agreement, the LMT requirements may be different — and this is where things can get confusing.

LMT Under Labour Agreements vs Standard Nominations

One important distinction that many employers and applicants miss is that LMT requirements under a Labour Agreement are governed by the terms of the agreement itself, not necessarily by the standard regulations that apply to Subclass 482 (Standard Business Sponsor) nominations.

For standard 482 nominations, the LMT requirements are found in Regulation 2.72AA, which applies specifically to Standard Business Sponsor (SBS) applicants. The broader section 140GBA provisions may not apply to Labour Agreement nominations in the same way. This means you need to carefully review the specific terms of your Labour Agreement to understand what LMT is required.

Common LMT Issues

Migration professionals regularly encounter LMT problems that can delay or jeopardise nominations. Some common issues include:

  • Non-continuous advertising: If job advertisements have gaps between them (for example, gaps of several days on a platform like Jora), they may not meet the requirement for continuous advertising.
  • Using the wrong platforms: Not all job advertising platforms are considered acceptable for LMT purposes. Major platforms like Seek are generally accepted, but less well-known sites may be questioned.
  • Timing issues: LMT advertising generally needs to have been conducted within a certain period before the nomination is lodged (typically within four months for standard 482 nominations). Under a Labour Agreement, the timeframe may differ.
  • Assuming Labour Agreement approval covers LMT: Some employers assume that because their Labour Agreement was approved using certain advertising, that same advertising will automatically satisfy the LMT requirement for the nomination. This is not always the case — LMT is assessed at the nomination stage, not the Labour Agreement stage.

What Should Employers Do?

  • Read the Labour Agreement carefully: The executed Labour Agreement document (not just the approval letter) will contain the specific LMT requirements for your arrangement. Make sure you have the full agreement, not just the cover letter.
  • Ensure continuous advertising: Make sure your job ads run continuously for the required period without gaps.
  • Use recognised platforms: Stick to well-known job advertising platforms that are widely accepted for LMT purposes.
  • Keep evidence: Save screenshots and receipts of all advertising, including dates, platforms, and the content of the ads.
  • Get advice before lodging: If you’re unsure whether your LMT meets the requirements, get professional advice before lodging the nomination to avoid delays or refusals.

Need Help With Your Nomination?

Labour Market Testing requirements can be tricky, especially under Labour Agreements where the rules may differ from standard nominations. If you’re an employer preparing a nomination or an applicant wanting to make sure everything is in order, our team can guide you through the process.

Our support for employers sponsoring workers includes reviewing the proposed role and recruitment evidence before the nomination is prepared.


Disclaimer: This blog post is intended for general informational purposes only and does not constitute legal or migration advice. Visa rules and policies can change, and individual circumstances vary. We recommend booking a consultation with one of our registered migration agents for advice tailored to your specific situation.

VisaTasker Migration Services

Reviewed by VisaTasker Migration Services

MARA Registered Migration Agent · MARN 2318017

This article is written and reviewed by VisaTasker Migration Services, a MARA-registered migration agency based in Australia. As registered agents, we are bound by the Migration Agents Code of Conduct and required to provide accurate, up-to-date advice based on Australian migration legislation. Information is reviewed against the latest Department of Home Affairs policy.

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About the author

Awais Nisar

Awais Nisar is the Principal Migration Agent at VisaTasker Pty Ltd in Lara, Victoria. He is an Australian Registered Migration Agent (MARN 2318017), a Qualified Education Agent Counsellor (QEAC v077), and a member of the Migration Institute of Australia (MIA 27394). His practice focuses on partner visas, employer sponsorship, skilled migration, DAMA pathways, student visas, Subclass 407 training visas, Administrative Review Tribunal matters, and ministerial intervention requests.

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