457 and Associated Visa Reforms - What You Need to Know

John Doe • April 21, 2017

The surprise announcement by the Prime Minister regarding the axing of the 457 Visa program has created a great deal of uncertainty for employers and foreign workers. Apart from the gazetted list of new occupations, there has been no new legislation or official policy guidance notes released by the Immigration Department. Our team at FCB Smart Visa has however curated all available information to cut through some of the ambiguity and misinformation circulating at present.At the outset, the abolition of the 457 visa program announced by Prime Minister Malcolm Turnbull on Tuesday 18 April 2017 is not a wholesale abolition of the employer sponsored visa regime. The politically charged 457 visa program will instead be replaced from March 2018 with a new category of visa, namely the Temporary Skill Shortage (‘TSS’) visa (subject to passage through both houses of parliament).

The headline features of the new TSS visa program will include: - Establishment of a consolidated training fund for sponsors - At least 2 years of relevant work experience for the nominee in the nominated occupation irrespective of whether the applicant otherwise meets the formal qualifications threshold under the Australia and New Zealand Standard Classification of Occupations (ANZSCO) classification - Universal 'Vocational English’ requirement - Universal Labour Market Testing requirement (unless inconsistent with an international obligation) - Mandatory criminal history checks for applicants - Introduction of a two-tiered list of occupations for regional and non-regional Australia The Commonwealth Government has already commenced phase one of the reform process and the staggered implementation timeline - as advised by the DIBP - is set out below:

Changes to temporary sponsored migration with immediate effect from 19 April 2017

1. List/s of ‘Sponsorable’ Occupations:

The previous list of occupations used to nominate a person in certain sponsored visa categories (referred to as the Consolidated Sponsored Occupation List or ‘CSOL’) has been effectively replaced by a combination of two new lists; the ‘Short-Term Skilled Occupation List’ (STSOL) containing 268 occupations and the ‘Medium and Long-term Strategic Skills List’ (MLTSSL) containing 183 occupations (the MLTSSL and STSOL are contained as Schedules 1 and 2 here ). All but 16 of the 451 occupations contained within these two lists currently apply to the following visa categories: - Temporary Worker (Skilled) Subclass 457 visas - Skilled Nominated Subclass 190 visas - State Nominated Skilled Regional Provisional Subclass 489 visas - Employer Nomination Scheme Subclass 186 visas (Direct Entry) - Training Subclass 407 visas As a result of the changes the overall number of occupations that can support a subclass 457 visa application has effectively been reduced by 216 (to 435) Of the 435 occupations now remaining, 24 farming and agriculture occupations are restricted to regional Australia , and a further 59 are effectively restricted by a set of ‘caveats’ which impose additional criteria relating to factors such as work experience, place of work, rate of pay, and mandated minimums for number of staff and business turnover. It is unclear at this stage whether the additional business related criteria will apply to the sponsoring entity itself, or can also be applied to an associated entity of the sponsor where it is the direct employer of the visa holder.

2. Visa validity periods

457 visas based on STSOL occupations and approved on or after 19 April 2017 will be granted for a period of 2 years. Visa grants of up to 4 years are possible only where the nominated occupation is drawn from the eligible occupation in the MLTSSL. The respective lists are reviewed twice a year.

Changes to temporary sponsored migration with effect from 1 July 2017

First of regular revisions to the STSOL and MLTSSL - Mandatory police clearances for 457 visa applicants will be phased in - Removal of the English Language exemptions for base salaries over $96,400

Changes to temporary sponsored migration with effect from December 2017

The DIBP will collect Tax File Numbers from visa holders and match with ATO data - The DIBP will publish a register of sponsors found to be non-compliant with sponsorship obligations

Changes to temporary sponsored migration with effect from March 2018

By March 2018, subclass 457 visas will be replaced by the new TSS visa regime (subclass is yet to be confirmed) and comprise a two-year short-term stream (STSOL occupations)and 4-year medium term stream for occupations on the MLTSSL. In addition to universal language assessment, mandated work experience (two years), criminal history checks, LMT and new training requirements for the sponsor, the respective streams will have the following attributes:

Short-term stream TSS visa Can only be renewed once (although possibly more than once if the holder is offshore) Will not have access to employer-nominated permanent skilled migration Medium-term stream TSS visa Can be renewed multiple times whilst onshore Provides a pathway to employer-nominated permanent residence after a 3 year qualifying period Associated changes to employer nominated permanent migration (ENS/RSMS) Changes to the employer nominated permanent residence visa categories are largely consequential to the reform of the 457 visa program.

Changes to permanent sponsored migration with effect from 19 April 2017

From 19 April 2017 until March 2018, new applicants for an employer nominated, subclass 186 visa under the Direct Entry stream can be nominated in an occupation on either of the STSOL or MLTSSL (minus the 16 occupations as per the above). Applications for a subclass 186 in the Temporary Residence Transition stream do not currently refer to a specific occupation list and instead will continue under current legislative criteria for the time being. We understand that in practice this means people with 457s granted under the 216 occupations removed from the 457 list on 19 April 2017 can still obtain permanent residence, as long as they reach 2 years of employment on their 457 with their current sponsor and lodge an application before March 2018. In relation to RSMS visas, there will be no immediate change to the rules for a subclass 187 application in the Temporary Residence Transition stream, and the current gazetted list of occupations relevant to a subclass 187 visa in the Direct Entry stream remains the same for the time being.

Changes to permanent sponsored migration with effect from July 2017 - Introduction of a universal English language assessment requiring an International English Language Testing System (IELTS) (or equivalent test) score of 6 in each component - Time of application age limit of 45 for all Direct Entry stream applicants (remaining at 50 for applicants under the temporary Residence Transition stream)

Changes to temporary sponsored migration with effect from December 2017

The DIBP will collect Tax File Numbers from visa holders and match with ATO data - The DIBP will publish a register of sponsors found to be non-compliant with sponsorship obligations

Changes to permanent sponsored migration with effect from March 2018

The permanent residence eligibility period will be extended from two to three years - Only MLTSSL occupations can be used to nominate under the ENS/RSMS (with additional occupations available to support regional employers for the RSMS). It appears as though applicants who need to traverse this date to make up their 3 years on a 457 will be blocked from applying for the 186 if their occupation is not on the MLTSSL - The Temporary Skilled Migration Income Threshold will apply to ENS and RSMS - All applicants must be under the maximum age requirement of 45 at the time of application (we are as yet unaware of any exemptions that might apply) - At least three years’ relevant work experience will be required for all ENS/RSMS applicants In addition to the employer sponsored categories dealt with above, the Government’s reform package has major implications for applicants in other parts of the migration program, and for those wishing to become Australian citizens by conferral. If you or your staff are affected and require assistance to navigate these substantial changes, please contact one of our immigration specialists on (+612) 9922 5188 or info@fcbsmartvisa.com.au

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Why British workers struggle to switch off despite leading in workplace trust

By Liz Jones • September 8, 2025

A workplace culture writer specialising in employee wellbeing, flexible working trends, and HR innovation. Helping organisations create healthier, more productive work environments through trusted insights and data-driven content.

UK Labour Market Holds Strong Despite Slower Pay Growth

By Liz Jones • August 27, 2025

The latest data shows that the UK labour market continues to perform steadily in 2025, with employment levels holding firm and job vacancies remaining historically high. While pay growth has slowed slightly, overall workforce activity remains strong, supported by high participation and resilient hiring demand. Liz Jones, Recruitment Director at people2people UK, says that this steady picture aligns closely with trends identified in the firm’s 2025 UK Market Report. “We are still seeing a healthy labour market,” she explains. “Employment is growing, and job openings remain strong, especially in sectors such as healthcare, logistics and professional services.” Employment Rate Rises, Unemployment Falls According to the July 2025 bulletin, the UK employment rate rose to 76.4 percent, the highest in over a year. The unemployment rate dropped to 3.7 percent, a level not seen since early 2020. This marks continued improvement in labour force participation following a volatile period during the pandemic recovery. Jones notes that this trend is being felt across multiple industries. "Businesses are rebuilding workforces and candidates are returning to the labour market," she says. "It is encouraging to see stronger engagement from both employers and jobseekers." Pay Growth Slows but Remains Positive One notable shift in the July update is a softening of pay growth. Annual wage increases for the period stood at 5.2 percent, down from 6.1 percent earlier in the year. This reflects a more balanced economic climate as inflation eases and employers stabilise budgets. “While pay growth is slowing, it is still above historical averages,” Jones comments. “Employers are adjusting to cost pressures, but most remain committed to offering competitive salaries to retain talent.” Vacancies Stay High, Reflecting Continued Demand Despite slower wage growth, the number of job vacancies remains elevated. Sectors such as care, education, and IT continue to post consistent hiring demand, with temporary and contract roles seeing a modest rise in 2025. “Our market report shows that employers are being more selective, but they are still hiring,” says Jones. “The competition for skilled talent is keeping demand steady, especially for roles that require specialist expertise or qualifications.” Implications for Employers With a stable employment base and slower but sustained pay growth, Jones suggests that now is a critical time for companies to refine their recruitment strategies. She recommends: Reviewing salary benchmarking to stay competitive in priority roles Streamlining recruitment processes to reduce vacancy durations Investing in retention through training and internal mobility Enhancing employer branding to attract passive candidates “The market is not slowing down,” she says. “It is settling. Employers who respond with clarity and flexibility will continue to secure great talent.” Summary The July 2025 labour market update confirms a period of stability for the UK workforce. While pay increases are moderating, employment levels remain high and hiring activity continues across core sectors. For recruitment leaders, this is a time to invest in strategy, not to pull back. With the right planning, employers can navigate this market with confidence.

Return-to-Office Pressure Drives Resentment

By Liz Jones • August 20, 2025

Pressure to Return to the Office Is Driving Resentment Among UK Workers As flexible working continues to define the future of employment, new findings suggest the UK may be facing a growing disconnect between employer expectations and employee preferences. According to people2people UK’s 2025 Market Report, more than half of workers feel increasing pressure to spend additional time in the office, a shift that is impacting engagement and retention across multiple sectors. Liz Jones, Recruitment Director at people2people UK, says that rigid workplace policies are now a leading contributor to candidate reluctance and employee churn. "Our data shows that 54 percent of UK employees feel pushed to return to the office more than they want to," she explains. "This pressure is not just inconvenient. It is reshaping how people view their current roles and future opportunities." Where the Pressure Comes From The 2025 Market Report found that much of the drive to return to the office stems from top leadership, with executive teams leading the call for more on-site presence. This push is not always aligned with performance metrics or employee feedback. "This is not about output or productivity," says Jones. "It is about outdated assumptions. Leadership often equates visibility with value, but that mindset is increasingly out of step with how modern teams work best." The mismatch between executive expectations and employee needs is contributing to declining morale, particularly in office-based roles that could easily operate on a hybrid basis. Flexibility Still Matters Despite the push to increase office attendance, flexibility remains a top priority for candidates and employees. The Market Report confirms that roles offering flexible working continue to receive more applications, fill faster, and maintain lower turnover rates. "Flexibility is not a temporary trend," Jones adds. "It is now a standard part of what professionals expect. Candidates are telling us clearly that how they work matters just as much as where or for whom." The data reveals that teams which embrace flexible models tend to report stronger engagement, better collaboration, and improved retention outcomes, especially in sectors such as tech, finance, and professional services. What Employers Should Do To stay competitive, Jones advises that employers need to reevaluate their return-to-office strategies with both data and empathy in mind. people2people UK recommends: Involving employees in setting attendance expectations Tailoring policies by role, function, and team needs Communicating the reasons for on-site requirements clearly and consistently Measuring the impact of attendance policies on productivity and engagement "One-size-fits-all approaches no longer work," Jones notes. "Companies that listen to their teams and create flexibility within structure will outperform those that rely on top-down mandates." Looking Ahead As the labour market continues to evolve, the ability to offer meaningful flexibility will be a deciding factor in who attracts and retains top talent. The 2025 UK Market Report shows a strong correlation between adaptive working policies and long-term business resilience. "Employers have a choice," Jones concludes. "They can lead with trust and flexibility, or risk losing great people to those who do."

Candidate Availability Is Rising at the Fastest Rate in Over Four Years

By Liz Jones • August 13, 2025

Candidate availability in the UK labour market has increased at the fastest rate since December 2020. Our 2025 people2people UK Market Report highlights the same trend that has been flagged, with the volume of candidates rising sharply due to redundancies and subdued hiring activity. Market Supply Meets Reduced Demand Liz Jones at people2people UK notes that the shift represents a clear imbalance. "Candidate supply is surging as job openings contract," she commented, in line with findings from our 2025 market report. "More people are actively looking but there are fewer roles available. This impacts how recruiters and HR managers plan talent attraction and engagement strategies." Salary Impact and Recruitment Strategy The increase in candidate availability has also influenced pay trends. Salary growth has remained modest due to reduced hiring budgets and greater competition for fewer active roles. "With more talent available and slower demand from employers, organisations are better positioned to be selective," Liz shared from our analysis. "This is a chance to focus on quality of hire rather than speed of hire." What This Means for Employers In a market with rising candidate supply and fewer opportunities, jobseekers become more discerning. They are assessing potential employers based on culture, flexibility, development opportunities, and brand values. Liz Jones advises that businesses should: Clearly articulate what makes them stand out to candidates Review their employer value proposition against market expectations Consider investing in candidate experience platforms and employer branding Maintain recruitment agility so they can swiftly fill roles when market conditions improve Preparing for Market Recovery Our 2025 report shows that while hiring activity remains subdued, there are early signs of resilience in sectors such as engineering, logistics and healthcare. "This market may feel cautious," Liz explains, "but there are pockets of opportunity. Organisations that maintain readiness will be first to tap into recovering sectors and talent pools."

Impacts of the Lack of Flexibility in the Workplace

By Liz Jones • August 6, 2025

Flexible working is no longer a perk. It is a priority. Our people2people 2025 Market Report confirms that a lack of flexibility is pushing a significant portion of the workforce to look elsewhere. Employers who fail to adapt are already seeing the consequences. According to our research, more than one million people in the UK left their jobs in the last 12 months due to rigid working conditions. That is nearly three percent of the workforce walking out of roles that did not meet their expectations for flexibility. This shift is not limited to remote working. It also includes flexible hours, part-time arrangements and compressed working weeks. Employees are looking for control over when and how they work. A Disconnect Between Policy and Preference While flexible work continues to rank high on the list of job seeker priorities, our data shows that more than half of employers have increased expectations for in office attendance in 2025. This rise is driven primarily by leadership mandates rather than operational need. "There is a growing disconnect between leadership expectations and employee preferences," I said while reviewing our report findings. "The result is avoidable turnover and a widening talent gap in key sectors." This trend is most visible in professional services, finance and tech roles where hybrid work is both possible and preferred. Employers insisting on a return to pre 2020 working patterns are facing greater difficulty attracting and retaining skilled candidates. Flexibility Strengthens Recruitment Outcomes The business case for flexibility is clear. Our report found that job adverts which include flexible options receive up to 40 percent more applications and fill faster. These roles also report lower early-stage attrition, suggesting a better match between employer and candidate expectations. "Flexibility improves both the volume and quality of applicants," Liz Jones noted. "It gives companies an edge in a market where top talent has choices." Candidates now assess flexibility before they consider salary, commute or even job title. Those who have experienced hybrid or remote work environments are unlikely to go back to rigid models without significant trade offs. What Employers Can Do Now The solution is not a one-size-fits-all model. Instead, companies should aim to provide structure around flexibility that meets both business and employee needs. Based on our research, I recommend: Making flexibility a default part of job design and recruitment messaging Offering a mix of remote, hybrid and flexible hour options depending on role Providing training for managers to lead distributed teams effectively Tracking turnover data linked to flexible work policies to spot early warning signs The expectations of the workforce have changed. Flexibility is now a deciding factor for candidates and a retention tool for current employees. Firms that ignore these expectations will continue to lose talent. Those that embrace structured flexibility will gain a clear advantage in attraction, engagement and long-term workforce planning.

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