Requirements for engaging non-citizens and non-residents
This is commonly known as ‘labour market testing’. We’ve outlined these requirements for you below.
Labour market testing requirements
Section 11F of the Code provides that a code covered entity must ensure that no person that is not an Australian citizen or Australian permanent resident (within the meaning of the Migration Act ) is employed to undertake building work for the code covered entity unless:
- the position is first advertised in Australia
- the advertising was targeted in such a way that a significant proportion of suitably qualified Australian citizens and Australian permanent residents would be likely to be informed about the position
- any skills or experience requirements set out in the advertising were appropriate to the position
- the employer demonstrates that no Australian citizen or permanent resident is suitable for the position before engaging a non-citizen or non-resident.
We monitor code covered entities’ compliance with the requirements outlined above by seeking evidence from employers that demonstrates compliance with labour market testing requirements, where non-Australian citizens or permanent residents have been engaged on a project since the company became a code covered entity.
The evidence we seek may include, but is not limited to:
- job applications
- documents from recruitment processes including reasons for not appointing any Australian citizen or permanent resident that applied for the position
- employment contracts.
Is there any further information available about labour market testing?
Yes—we’ve developed a fact sheet with further information and examples of occupations included and excluded in labour market testing requirements.