The Australia-United Kingdom Free Trade Agreement (A-UKFTA) eases the mobility of people between Australia and the UK, providing UK citizens and even permanent residents a streamlined path to employment in Australia. This innovative agreement lifts the burden of traditional recruitment red tape, so let's get to the heart of this opportunity and what it means for your business.
As small and medium-sized enterprises (SMEs) in Australia continue to expand and compete on a global stage, the ability to recruit overseas talent has become a game-changing strategy. The A-UKFTA, which took effect in late May 2023, is a development that offers a significant advantage to Australian businesses, especially those with ties to the United Kingdom.
The End of Labour Market Testing for UK Nationals
Labour market testing (LMT) has long been a stipulation for employers in Australia, requiring them to first seek local talent before looking abroad to fill vacancies. This rigorous process demands businesses advertise a position on 2 or more job sites, sift through applications, and justify their need to recruit internationally. It’s a time-consuming exercise.
With the advent of A-UKFTA, UK nationals and permanent residents are now exempt from this prerequisite. Companies can now bypass LMT entirely when nominating such individuals for a sponsored role.
How A-UKFTA Benefits Small Business
For smaller enterprises, the need to justify international recruitment due to a lack of local options remains, but with the A-UKFTA , the process is much more streamlined. Businesses can now nominate any suitable UK worker for roles that appear on the skilled occupation list, significantly broadening their recruitment horizon.
The AUKFTA also extends nomination periods up to four years, even for roles typically limited to shorter terms. This provides businesses and employees alike with more stability and planning opportunities. However, some occupations, like cleaners and aged care assistants, still face hiring hurdles since they're not listed under skilled occupations, pointing to a gap that the AUKFTA hasn't bridged.
A-UKFTA for Manufacturing: A Boost for Companies Seeking Global Expertise
Manufacturing businesses can now tap into the UK's skilled workforce without the previously mandatory LMT, enabling them to employ professionals with extensive experience in varied roles. This shift brings a windfall for sectors such as mining, where specialist knowledge is paramount, allowing for a more diverse range of occupations to be considered under the A-UKFTA.
Where previously only senior management or executive level roles were waived from LMT under Australia’s various international trade obligations, the A-UKFTA has provisions for roles in engineering, mining and manufacturing advisory and consulting services, plus various technical, maintenance and repair roles.
Strengthening Ties and Building Capacity Across Continents
The A-UKFTA isn't just a facilitator of easier hiring, it's a bridge between continents, fostering business expansion and staff mobility without the usual bureaucratic tangle. For Australian SMEs eyeing the UK and EU markets (or vice versa) the agreement allows for the seamless transition of workers to set up or sustain operations. This alliance reduces needless delays, helping you get the right person into the right job swiftly.
The government has also put together a guide on using A-UKFTA to do business with the United Kingdom .
Other International Trade Agreements for Skilled Migration
The A-UKFTA isn't alone in its quest to refine the skilled migration process. Other international trade obligations also exist, each with its own set of criteria. Certain occupations, particularly those integral to setting up businesses, benefit from exemptions under these agreements. The A-UKFTA simplifies things further, offering broad occupational flexibility, far beyond the executive or senior management tiers included in other agreements.
Get Skilled Worker Advice from our Migration Lawyers
The A-UKFTA opens numerous doors for Australian businesses to source global talent, but like many FTAs, the intricacies of the agreement underlines the importance of engaging with skilled migration law experts. Our skilled migration lawyers help companies navigate this complex area, ensuring compliance and maximising the benefits of such international accords.
For businesses looking to grow and thrive through international recruitment, the A-UKFTA could well be the key to unlocking a new phase of opportunity and success.
