Employing skilled workers from overseas can be a valuable strategy for businesses facing local labour shortages. In South Australia, two key visa pathways support employers in recruiting global talent: the Designated Area Migration Agreement (DAMA) and the Regional Certifying Body (RCB) endorsement for the Skilled Employer Sponsored Regional (SESR) visa. Each option presents unique benefits and obligations, making it important for employers to choose the right one that aligns with their needs.
In this article, we will compare these employer-sponsored pathways, including their visa subclasses, features, and legal obligations. We’ll also discuss some Australian legalities you should be aware of when sponsoring foreign workers.
What is the Designated Area Migration Agreement (DAMA)?
The Designated Area Migration Agreement (DAMA) is a tailored migration program designed to address specific labour shortages in designated regions. South Australia participates in the DAMA program to help businesses in regional areas sponsor skilled and semi-skilled overseas workers who may not meet the standard criteria for other skilled migration programs. DAMA covers two visa subclasses:
- Temporary Skill Shortage Visa (subclass 482) – This visa allows employers to sponsor skilled workers for up to four years.
- Skilled Employer Sponsored Regional (Provisional) Visa (subclass 494) – This is a pathway to permanent residency for workers employed in designated regional areas.
Key Features of the DAMA Program:
- Labour Agreement Stream: DAMA operates under the labour agreement stream of the employer-sponsored visas, meaning employers need to enter a formal agreement with the Australian government to sponsor overseas workers.
- Occupational Flexibility: One of the significant benefits of the DAMA is its flexibility in occupation lists. While standard programs may have a rigid list of eligible occupations, the DAMA often includes semi-skilled roles that are essential for regional businesses.
- Wage Concessions: Under DAMA, businesses may also benefit from wage concessions, where they are allowed to pay a slightly lower salary than what is usually required under other visa streams.
- Skills and English Concessions: DAMA also allows for some concessions regarding the skills and English language proficiency of workers, enabling businesses to sponsor workers who may not meet the strict criteria of other visa programs.
What is the Regional Certifying Body (RCB) Sponsored Program?
The Regional Certifying Body (RCB) program applies to businesses sponsoring skilled workers under the Skilled Employer Sponsored Regional (SESR) Visa (subclass 494). This visa is designed for employers in regional areas who want to sponsor highly skilled workers, and it provides a pathway to permanent residency.
Key Features of the RCB Sponsored Program:
- RCB Endorsement: For this visa, employers must seek endorsement from a Regional Certifying Body (RCB). The RCB’s role is to ensure that there is a genuine need for a foreign worker and that no local Australians can fill the position.
- Occupational Requirements: Unlike the DAMA, the SESR program adheres to a more standardised list of skilled occupations, limiting its flexibility for semi-skilled roles.
- Pathway to Permanent Residency: One of the key advantages of the SESR visa is the clear pathway to permanent residency. Workers who are sponsored under this visa may be eligible for permanent residency after three years of employment.
- Higher Salary Threshold: Unlike DAMA, the SESR visa has stricter salary requirements. Employers must pay their sponsored workers the Temporary Skilled Migration Income Threshold (TSMIT) or above, ensuring that foreign workers are remunerated at an appropriate market rate.
Choosing the Right Sponsorship Pathway
When deciding between the DAMA and RCB employer-sponsored programs, it’s important to assess your business needs, your industry’s workforce gaps, and the type of talent you are seeking.
DAMA is Suitable if:
- Your business operates in a regional area of South Australia.
- You have specific labour needs that include semi-skilled positions.
- You require more flexibility in wage and skill levels.
- You are looking for a temporary or potentially long-term employment solution.
RCB Sponsorship is Suitable if:
- Your business needs highly skilled workers.
- You are focused on positions listed on Australia’s standard skilled occupation lists.
- You can meet the minimum salary requirements (TSMIT).
- You are aiming to offer a clear pathway to permanent residency for your sponsored employees.
Australian Legalities to Be Aware of When Sponsoring Employees
Sponsoring foreign workers under DAMA or RCB employer-sponsored programs requires you to follow certain legal obligations and ensure compliance with Australian immigration law and labour regulations.
- Labour Market Testing (LMT): Before sponsoring a worker under either visa pathway, you will need to conduct Labour Market Testing to prove that you have tried and failed to fill the position with an Australian worker. This involves advertising the role locally and providing evidence of the recruitment process.
- Visa Conditions and Compliance: Employers must adhere to the terms set out in the sponsorship agreement, which include paying the nominated employee at the correct market rate, ensuring they are working in the role specified in the visa application, and providing a safe workplace.
- Fair Work Regulations: Sponsors must comply with Australia’s Fair Work Act, ensuring that sponsored employees receive the same workplace rights as any other employee in Australia. This includes the right to leave entitlements, working hours, and workplace health and safety standards.
- Ongoing Monitoring: Businesses must ensure that they continue to meet the obligations of their sponsorship, including notifying the Department of Home Affairs if there are any changes to the employee’s role or employment status.
Which Pathway is Right for Your Business?
Both the DAMA and RCB programs offer distinct advantages, but the choice will ultimately depend on your business’s specific circumstances. If you need flexibility and access to a broader range of skills, DAMA might be the better option. However, if you are focused on highly skilled positions and offering a clear path to permanent residency, the RCB route may suit your needs.
Navigating employer-sponsored visas can be complex, but our expert team at NB Migration Law can guide you through the process and help you choose the best pathway. Book a complimentary consultation with us today to discuss your options and find out how we can assist your business in sponsoring skilled overseas workers.
Contact us at NB Migration Law to get started on your sponsorship journey.