Requirements for engaging non-citizens and non-residents

The Code sets out particular requirements for code covered entities before they employ persons who are not Australian citizens or Australian permanent residents to undertake building work.

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.

Monitoring compliance

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:

  • advertisements
  • 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.