Additional Requirements for ES Stream Nominations Under the SESR Visa Subclass 494

If you're a standard business sponsor lodging a nomination under the Employer Sponsored (ES) stream of the Skilled Employer Sponsored Regional (SESR) visa subclass 494, there are a number of additional requirements that go beyond the general nomination criteria. These relate specifically to the employment contract, supporting documentation, and a salary assessment from a Regional Certifying Body. Here's what you need to know.

Employment Contract Requirements

One of the core requirements for ES stream nominations is that the nominee must be directly employed by the sponsoring business — or by an associated entity of that business — under a written employment contract. A signed copy of that contract must be provided to the Department of Home Affairs, and critically, the contract must not contain any clause that explicitly rules out the possibility of extending the employment beyond its initial term.

There are a couple of important structural points worth being aware of here:

• Sole traders cannot nominate themselves — this is because a person cannot legally enter into an employment contract with themselves.
• Most partnerships cannot nominate their partners either, as partners are generally not considered employees under standard employment law. There may be limited exceptions depending on the relevant State or Territory legislation, so it's worth seeking professional advice if this applies to your situation.
• As always, care must be taken to ensure the role was not created solely to secure a visa outcome for the nominee — this ties back to the genuine position requirement discussed previously.

What Evidence Must Be Provided?

A signed copy of the employment contract must be submitted with the nomination. A permanent, ongoing contract will satisfy all the relevant requirements without any additional conditions.

It's also worth noting that since 6 December 2023, changes to the Fair Work Act have restricted fixed-term contracts to a maximum of two years, unless a specific exception applies. This means that for most SESR nominations — where the visa itself can be granted for up to five years — sponsors will typically need to offer a permanent contract rather than a fixed-term one.

That said, a fixed-term contract can still meet SESR nomination requirements, provided it does not explicitly exclude the possibility of the contract being extended or renewed. A few additional notes on this:

• Academic institutions sometimes use contracts that appear time-limited in nature. In those cases, the Department may request confirmation that renewal has not been ruled out.
• Contractor agreements that require the worker to hold an ABN do not satisfy this requirement — the nominee must be engaged as an employee, not as an independent contractor.
• If the nominee will be employed by an associated entity of the sponsor (rather than the sponsor directly), the employment contract must be between the nominee and that associated entity — not the sponsoring business itself.