Employer Requirements and Obligations for the 186 Visa in Australia

Australia’s skilled migration program continues to respond to demand for overseas talent. In 2024, approximately 49,000 temporary skilled visa holders arrived, highlighting ongoing recruitment needs. The Employer Nomination Scheme (ENS) Subclass 186 visa is one option that enables eligible employers to nominate skilled overseas workers for permanent residence.

Also known as the Employer Nomination Scheme (ENS) visa, the Subclass 186 visa enables highly skilled workers to live and work in Australia, and allows employers to sponsor them. However, this process requires careful planning, not only for visa applicants but also for employers who wish to recruit them. This blog offers key insights into the 186 visa checklist for employers, from its eligibility criteria to common mistakes employers must avoid for a seamless nomination. Read on to gain a clear picture of what these entail.

Understanding the 186 Visa for Employers

The Employer Nomination Scheme visa allows eligible Australian employers to nominate skilled workers for migration and employment within their organisations. As per the rules set by the Australian government, employers can nominate workers for roles listed on the Department of Home Affairs' Skilled Occupations List. Primarily, this visa enables employers to retain their skilled workers who are currently on a temporary visa, allowing them to reside in Australia permanently.

This arrangement enables employers to retain skilled staff and nominate them for permanent residency, provided the eligibility criteria are met. In some cases, permanent residents may later apply for citizenship if all legal criteria are satisfied.

Currently, there are three pathways for applicants to migrate via the 186 visa. While all three require applicants to present competent English language proficiency and meet the Department's health and character requirements, they differ in certain areas. Here is a detailed breakdown:

• Direct Entry Stream: The Direct Entry Stream is generally for visa applicants who possess the required skills, have at least three years of work experience, and are nominated by an approved Australian employer. This stream also requires applicants to present a positive skills assessment by a relevant assessing authority.
• Labour Agreement Stream: This stream is for employers who wish to employ workers in nominated occupations under a relevant labour agreement with the Australian government.
• Temporary Residence Transition Stream: The temporary residence pathway is for applicants on a Skills in Demand (SID) Visa (Subclass 482) or a related bridging visa. Such applicants, who have at least two years of full-time work experience in an eligible sponsored occupation and are now being nominated, can use this stream to move for permanent residence.

Employer Eligibility Criteria for the 186 Visa

Similar to how applicants must meet the eligibility criteria for their visa application, the nominating employer must be eligible to lodge their nomination to the Department. Below, we have listed the criteria that determine if an employer is eligible to nominate:

Active and Lawfully Operating Business

Firstly, the employer must have an active and lawfully operating business in Australia. The business must be lawfully operating in Australia, with evidence of active operations and compliance with regulatory requirements. Ineligible or inactive businesses are not able to lodge valid nominations.

Genuine Need for the Position

Next, the employer must also present a genuine requirement for the nominated position. The position must provide full-time employment for at least two years following the visa grant date, in accordance with the annual market salary rate standards. This is an expectation of the Department, ensuring that the nomination was made in good faith, based on a genuine need for the position.

Employers are generally required to provide evidence that they have been unable to recruit suitably qualified Australian workers for the nominated position, in accordance with Department of Home Affairs requirements. Exemptions may be applicable to certain occupations, as specified by the Department.

Approved Standard Business Sponsor (If Applicable)

If an employer wants to nominate applicants with a Subclass 482 (Skills in Demand) or 494 (Skilled Employer Sponsored Regional) visa, they must be an approved standard business sponsor. This simply means that the Department has granted an employer the ability to sponsor workers, after evaluation. Standard business sponsorship lasts five years from the date of approval, and the duration of stay for workers will depend on the employer's visa.

Compliance with Employment Laws

Lastly, the employer must be compliant with Australia's employment laws. This means they must comply with workplace relations laws, employment standards, safety regulations, and other applicable regulations. Additionally, the employment contract must adhere to the guidelines by Fair Work Australia, ensuring sufficient leave policies, safe working conditions, and a commitment to workplace diversity and equality. These are crucial to employee well-being and ethical business operations, so any concerns in this area can render employers ineligible to nominate.

186 Visa Employer Nomination Checklist (2025 Update)

The nomination application process involves several steps that employers must complete accurately. Here's a checklist for the 186 visa nomination in Australia:

Documentation Checklist

The process begins with gathering all the necessary documents. As a sponsoring employer, you must present documents to prove eligibility. Besides the nomination application itself, these include documentation about business operations, compliance with employment laws, labour marketing testing (LMT) to confirm the inability to hire required talent locally, etc. If required, ensure that the current standard business sponsorship approval documentation is available and up to date.

Nomination Steps

The next part of this 186 visa checklist includes all the key steps employers must fulfil to nominate workers. These include the following:

• The first step is to check the worker's eligibility; depending on the visa stream, they must have the required work experience, skills, qualifications, documents, and a valid visa status to be eligible. Before proceeding, employers must also ensure that they are eligible to nominate and that they are nominating for an eligible occupation.
• Next, you can lodge your nomination to the Department through your ImmiAccount. Ensure all your supporting documents are accurate, relevant, and updated to avoid unnecessary delays or a negative outcome.
• Once the application is complete, pay the required fee to submit it on ImmiAccount. It is recommended to register for ImmiAccount notifications, as the Department often requests further information during evaluation, and receiving notifications immediately is key to avoiding processing delays.
• After submission, you must await the Department's decision. Upon approval, you will receive a nomination valid for six months. If not, the Department will share the reasons for refusal.

The applicant's visa application can only proceed after nomination approval, so it is vital to follow this checklist thoroughly.

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Key Employer Obligations Under the 186 Visa

According to the rules for the Subclass 186 visa, sponsoring employers are required to fulfil certain obligations. These include:

Pay Market Salary and Maintain Fair Employment Conditions

One of the most essential responsibilities of an 186 visa employer is to ensure fair pay and employment conditions. Employers must remunerate the sponsored employee in accordance with the market salary rate standards for their role and offer employment for a minimum duration of two years.

Moreover, this obligation also includes paying the Skilling Australians Fund (SAF) levy, a one-time payment for nominating workers for this permanent visa. The SAF levy helps to support workplace training for migrating workers and is a mandatory obligation for nominated occupations.

Sponsoring employers must follow the Core Skills Income Threshold (CSIT) applicable to the 186 visa. As of 2025, the CSIT for this visa is AUD 76,515; employers must provide a salary that matches or exceeds this figure and be financially capable of paying it for at least two years.

Ongoing Compliance with Visa Conditions

Ongoing compliance is a significant part of the employer obligations for the 186 visa in Australia. As a sponsor, you must follow the regulations for the visa stream through which you are nominating and the conditions set by the Department. For example, if you opt for the direct entry stream, the nominated worker must have a valid skills assessment. Or, if you opt for the labour agreement stream, your business must be party to a relevant agreement to nominate workers.

Inform the Department of Any Changes

Timely coordination and updates to the Department are critical for avoiding nomination hassles. If there are any important changes that can affect your nomination, you are obligated to notify the Department. Any changes to your business address, taxation details, financial capability (to adhere to the CSIT), business trading name, etc., must be reported immediately as your nomination is under review.

Record-Keeping Obligations

When sponsoring workers, employers must maintain a record of all relevant documents for the visa holder's salary, visa requirements, Australian immigration details, employment contracts, and SAF and CSIT compliance.

Workplace Rights and Non-Discrimination

Maintaining a safe work environment that prioritises equality, diversity, and mental well-being is also compulsory for sponsoring skilled workers. Employers must provide employment conditions to sponsored workers that are no less favourable than those provided to Australian citizens or permanent residents in similar positions.

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Book a Consultation‍

If you are interested in getting more information about a visa, get in touch with Australian Migration Agents for a consultation.

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Common Mistakes Employers Make When Sponsoring for a 186 Visa

Understanding the various Employer Nomination Scheme 186 obligations is vital, as is recognising the mistakes nominators often make. Here are some common mistakes to avoid:

• Not Checking Applicant Eligibility: Sponsors often skip thoroughly checking the applicant's eligibility. Besides checking their skills and work experience, you must also look into their past visa history, including whether they have had any visas cancelled or refused. Additionally, verify if they hold a valid skills assessment (for DE stream) and if they hold the correct bridging visa.
• Not Updating the Department: There can always be sudden changes in the business, such as adjustments to the trading name, fluctuations in income, or changes in location, among others. However, if you have already lodged the nomination, not notifying the Department will delay the process, as additional information may be requested.
• Not Ensuring Position Genuineness: The Department expects your nomination to be for a position for which you genuinely require it. Nominating a position without demonstrating a genuine need or without the ability to comply with all employment and salary requirements is a frequent basis for refusal.
• Not Applying for Standard Business Sponsorship: Even if you have a lawful and active business, you cannot be automatically eligible to nominate. Hence, if required, first apply to become a standard business sponsor, and upon the Department's approval, proceed with your nomination.

Ensuring Compliance and Avoiding Penalties

Maintaining compliance is integral for the Employer Nomination Scheme Subclass 186 visa. Failing to adhere to obligations can result in serious penalties, including refusal of nomination. Here is how employers can ensure compliance:

Importance of Accurate Information

Every detail you provide, such as your business trade name or LMT paperwork, must be accurate. Inaccuracy in supporting information can raise significant concerns, often leading to processing delays or potential refusals.

Regular Review of Sponsor Obligations

Compliance with your employer nomination requirements ensures that the worker can continue working in your organisation. Therefore, regularly review items such as CSIT-compliant pay, the visa holder's work conditions, and record maintenance, to avoid penalties or nomination hassles.

Seek Legal or Migration Advice

ENS compliance involves several steps, as already mentioned. Employers are advised to seek guidance from registered migration agents or qualified legal professionals to ensure compliance with nomination requirements and to mitigate the risk of errors that may result in refusal or penalties.

How Migration Agents Can Help Employers

From conducting LMT to paying the SAF levy, employers have to adhere to multiple obligations when nominating. Even with prior nomination experience, it is easy to get lost in the process and miss key steps that can ultimately delay the process or lead to a negative outcome. This is why employers must consider working with professional migration agents.

A registered migration agent simplifies the nomination process through strategic guidance and transparent support. At Australian Migration Agents, our team comprises qualified professionals who provide tailored advice to help you complete your nomination confidently. With decades of combined experience in Australian immigration, our agents have a deep understanding of the 186 visa. They can help you clearly understand the nomination process and the obligations you must follow.

Frequently Asked Questions (FAQs)

Who Can Sponsor an Employee Under the 186 Visa?

An approved Australian employer with a lawful and active business can sponsor employees under the 186 visa.

What Are the Employer’s Key Obligations After 186 Visa Approval?

Once their 186 visa is approved, employers must ensure that the nominated position stays available and genuine, the employment contract adheres to workplace laws, the pay is CSIT and market rate compliant, and that the employee meets the visa stream's requirements.

How Long Must an Employer Employ the Sponsored Worker?

As per the 186 visa rules, employers must employ the sponsored worker for at least two years following the visa grant date.

What Happens If the Sponsored Employee Leaves Early?

If the sponsored employee leaves before the end of their contract or the two-year duration, employers are no longer responsible for their visa. Additionally, they can look for a new worker to nominate, as long as they are eligible.

Can a Small Business Sponsor Under the 186 Visa?

As long as the business is lawful, active, and capable of adhering to the market salary rate, they can sponsor workers under the 186 visa.

How Can Migration Agents Help Employers With 186 Nominations?

Registered migration agents can provide guidance on employer obligations, nomination requirements, eligibility checks, and appropriate communication with the Department of Home Affairs.

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