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India’s Ministry of Home Affairs has released a new Frequently Asked Questions (FAQ) (pdf) concerning work-related visas. As previously discussed, the Ministry issued a separate FAQ on the same subject – business visas and employment visas – in October 2009. The most recent FAQ discusses 22 topics, including:

• the differences between business visas and employment visas;
• both visas’ eligibility criteria, duration, and required documentation;
• whether a business visa can be converted to an employment visa, and vice versa;
• which visas are required for Non-Governmental Organization workers; and
• which visas can be issued to family members of visa holders.

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Daily News & Analysis reports that, in response to criticism over the government’s recent enforcement of a rarely-used 1955 law requiring nonresident Indians (NRIs) who became United States citizens to obtain surrender certificates and pay up to $425 for an Indian travel visa, India has amended its travel rules for NRIs. As a result:

• NRIs who became U.S. citizens before June 1, 2010 will not need to obtain a surrender certificate, but will be required to pay $20 to have their India passport stamped “cancelled.” NRIs who have lost their India passports will need to provide an affidavit and a copy of their U.S. naturalization certificate.
• NRIs obtaining U.S. citizenship on or after June 1, 2010 will be required to obtain a surrender certificate and pay $175.

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India’s “visa on arrival” scheme has proven popular, with 1,793 visas issued in the first three months of a 12-month pilot program, according to The Economic Times. Intended to increase tourism, the program allows citizens of Singapore, Finland, New Zealand, Japan and Luxembourg to obtain a tourist visa upon arrival in India instead of securing the visa beforehand. More than half of the visas were obtained by tourists arriving at the Delhi airport. So far, Singapore nationals have been issued the largest number of visas (642) under the program.

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A “project visa” for foreign nationals working on joint ventures in India continues to be contemplated by the government, according to The Economic Times. The visa would be valid for the duration of a specific project and, possibly, divided into two categories: unskilled labor visas, and skilled labor visas.

India has struggled with employment-related immigration issues over the past several months. Previously, it tightened restrictions on foreign labor to increase employment opportunities for Indian nationals, putting a cap on how many visas would be issued to Chinese nationals working on projects in India. As a result, numerous projects fell behind schedule, particularly power plant construction.

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The Indian government may be relaxing the rules that prevent business visa holders from working in India, according to The Economic Times. For instance, the government is identifying activities within the IT industry for which companies may employ—for limited periods—foreign nationals who do not hold work permits. Although the IT industry, which pushed for relaxation of the rules, applauded the move, it continues to press India to discard rules that limit the number of business visas available and restrict allocation of employment visas to 1% of a project’s total number of workers.

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Government officials and local businesses are uncertain whether Singapore, which is one of the world’s fastest-growing economies, can maintain strong economic growth levels over the next decade. As reported by The Wall Street Journal, the export-heavy Asian country is trailing other regional competitors in productivity and has been negatively impacted by the global financial crisis as its primary consumers, the United States and Europe, struggle to fully recover.

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JoongAngDaily reports that South Korea has eased the path to citizenship and relaxed immigration restrictions as follows:

• seventeen additional citizenship examination centers are opening in local immigration offices this month (previously, there was only one venue for taking citizenship examinations);
• companies can submit visa applications online (www.visa.go.kr) instead of sending company officials to apply on-site at immigration offices;
• procedures for obtaining re-entry permits following short home visits and overseas trips will be eased for international students and foreign nationals married to South Korean nationals;
• applicants who file re-entry applications on-site or through the Immigration Service’s official website will be permitted to make unlimited overseas trips and re-enter on multiple occasions regardless of their length of residence in South Korea; and
• individuals applying for re-entry will be exempt from paying fees.

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By 2011, Malaysians might be required to obtain a visa in order to enter the United Kingdom, according to The Star Online. Presently, Malaysians may visit the U.K. for up to six months without a visa. However, the U.K. is considering rescinding Malaysia’s visa-free status due to the high number (an estimated 20,000) of Malaysian nationals overstaying and working illegally. If this occurs, Malaysian visa applicants will need to pay a nonrefundable processing fee of 1,200 Ringgits (approximately 350 USD; 220 GBP).

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Global Times reports that government officials are working to combat illegal immigration in southern China’s Guangdong province, home to 57,800 permanent — and more than 1.14 million temporary — foreign residents. During the first half of 2009, almost one-third of foreigners visiting China entered or exited through the province.

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The Times of India reports that, beginning February 1, 2010, an online application process for U.S. visas will be launched at consulates in India. Applicants will complete applications and answer additional questions online, print out a confirmation page, and then bring the document to a consular office.

Although the global economic crisis caused a decrease in the number of U.S. visa applications overall, student visa applications from India — the United States’ top source of foreign students —was up 9%, from 94,563 to 103,260, in 2009 as compared to 2008.

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The BBC reports that the number of immigrants to Australia from China has surpassed those from New Zealand and the United Kingdom, thereby making China the country’s main source of immigrants. In the four months prior to October 2009, 6,350 Chinese nationals came to Australia. While emigration from China to Australia rose by 15% over the same period last year, it decreased from the UK and New Zealand by 28% and 47%, respectively. Emigration from the UK and New Zealand is largely employment-driven, whereas Chinese emigration is primarily to reunite families.

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The Times of India reports that India’s tightening of restrictions for Business Visas (BV) and Employment Visas (EV) for foreign workers has delayed completion of numerous infrastructure projects. To remedy the situation, the home ministry has proposed a Project Visa (PV) that will allow foreign nationals to work on specific projects, mainly infrastructure and those of strategic importance. Currently the proposal is being examined by a government committee.

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New Zealand’s Minister of Immigration recently announced that a new visa scheme has been created to attract highly skilled individuals between the ages of 20 and 35. The “Silver Fern” policies, which will take effect in April 2010, create two types of permits.

• A “job search” permit allows qualifying individuals entry to New Zealand for nine months to seek skilled employment. Initially, permit availability will be limited to 300 per year.
• A “practical experience visa/permit” grants those who gain employment the right to work and reside in New Zealand for a further two years. There will be no annual limit to the number of applicants for this type of permit.

Image credit: ButterStick

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According to The Economic Times, changes to India’s visa scheme for Chinese nationals has resulted in a substantial decrease in the number of Chinese workers—from 650 to 100—at a power plant project in Mundra. Because of visa issues, the project, which is owned and operated by a consortium of Chinese businesses and is supervised by Chinese contractors, has replaced Chinese workers with Indian workers. Similar staffing changes have occurred at power projects in Haryana and Uttar Pradesh.

Photo Credit: Bert Marshall

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According to IBN Live, visa applications by Pakistan-born U.S. citizens seeking to visit India will now be processed by authorities in New Delhi, rather than by the Indian embassy in Washington, D.C. or by consulates. Visa approvals had been tightened by the Indian embassy in Washington, D.C.

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The Times of India reports that India has issued a travel advisory in response to the Chinese embassy’s practice of stapling paper visas to passports of individuals from Jammu, Kashmir and Arunachal Pradesh. Indian officials have declared these visas invalid because they do not conform to the usual practice of pasting visas to passports. The advisory reminds Indians traveling to China to ensure that the visas are pasted onto their passports.

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As reported recently on this blog, the Government of India's Ministry of Home Affairs has released guidance on permissible use of Business Visas and Employment Visas by foreign nationals visiting India. This development has significant implications for multinational corporations sending employees to India on short-term assignments. For an update regarding this uncertain legal development based on feedback from companies whose employees have been directly affected by this situation, continue reading Littler's ASAP "India Guidance on Its Visa Regimes May Create Major Change for Companies Doing Business in India," written by Ian Macdonald.

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India's Ministry of Home Affairs (MHA) has released an FAQ (pdf) to clarify the two types of visas available for work-related visits to India: business visas (“B” visas) and employment visas (“E” visas).

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The Philippines has revised its guidelines for issuing alien employment permits (AEP), reports the Oman Tribune. The new rules require foreign workers—and domestic and foreign employers looking to employ them—to obtain an AEP. Individuals and companies can face a fine of $200 for every year that a foreign worker is employed without an AEP.

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As reported by Business Standard, sources suggest that a new visa is being developed for Chinese nationals working on contract labor projects in India. The move comes in response to Indian laborers' concerns that many projects, particularly those financed and operated by Chinese companies, import Chinese labor instead of hiring locally, thereby negatively impacting the Indian workforce. Although details have yet to be released, the new visa would ostensibly set defined lengths of stay for Chinese laborers and only be issued for specific projects.

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The New York Times reports that Chinese health officials will abolish mandatory testing for hepatitis B during medical exams given to prospective college students, factory workers and government employees. This policy change means that individuals who test positive for hepatitis B will no longer be automatically barred from classrooms and jobs. Experts contend that cancelling blood testing for employment and academic purposes will not cause the disease to spread.

The change, brought about by public pressure, is significant because 120 million people in China are estimated to be infected with hepatitis B. Infected individuals have been prohibited from attending medical school, securing teaching positions or filling jobs in the food production industry.

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The Business Standard reports that India’s Parliament is expected to propose legislation that will increase criminal penalties for human smuggling in an effort to curb exploitation of Indian workers abroad by recruiting agencies and employers. The proposed legislation is also intended to make the emigration process simple and transparent. Under the new law, recruiting agencies will be required to register with the Emigration Management Authority (EMA), a new body that will replace the Protector General of Emigrants. Moreover, recruiting agencies will be subject to periodic performance reviews and rated by the government. In addition, foreign employers in certain countries favored by Indians seeking employment abroad will need to be accredited before they can hire Indian nationals.

Photo Credit: Dhirad

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The U.S. State Department has announced a travel alert for India. U.S. citizens visiting or living in India are cautioned about possible terrorist attacks throughout India during the country’s current holiday season which also coincides with the anniversary of the September 11th attacks. It has been less than one year since the Mumbai attacks in which hotels and other public places were targeted.

Accordingly, U.S. citizens are advised to:

• be aware of local surroundings;
• maintain a low profile;
• monitor local news reports;
• consider the security level of venues before visiting them; and
• register with the nearest U.S. Embassy or Consulate via the State Department’s website. Those without internet access can register directly at any of the five diplomatic offices.

The travel alert will expire on October 30, 2009.

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Australia has amended the requirements for its subclass 457 visa (Temporary Business – Long Stay) for the stated purpose of preventing exploitation of foreign workers and ensuring that they are not brought in to undercut national wages. Subclass 457 visas are the most commonly used visa for sponsoring foreign workers in Australia. The visas can be valid for a period between three months and four years.

Under the amended rules, employers sponsoring foreign employees on subclass 457 visas are required to pay the market rate for the position. Employers currently paying below the market salary rate to existing subclass 457 visa holders will have until January 1, 2010 to commence paying market rates.

Where an Australian national occupies a similar position, a foreign worker’s rate will be based on that employee’s salary, benefits, etc. Where no equivalent Australian employee exists, employers must review outside collective agreements, salaries, etc. to establish the market rate.

In addition, if an employee’s salary is $180,000 AUD ($155,275 USD) or more, the employer will be exempt from the market rate requirement. Also, subclass 457 visas will not be issued for positions with salaries below $45,220 AUD ($39,008 USD).

Previous significant changes to the 457 visa were made in April; specifically:

• An increased English language requirement for trade occupations and chefs;
• The introduction of formal skills assessments for all trade occupation applicants from countries that are not considered low-risk;
• A requirement that employers attest to a strong record of, and commitment to, employing local labor and non-discriminatory employment practices;
• The development of formal training benchmarks for sponsors; and
• A requirement that labor agreements be in place for ASCO (Australian Standard Classification of Occupations) five to seven occupations.

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According to the New York Times, an increasing number of U.S. college graduates are seeking employment in China. The low cost of living and vibrant Chinese economy, coupled with the dwindling U.S. job market, have made metropolitan areas such as Shanghai and Beijing appealing to recent graduates eager to join the workforce.

Some U.S. graduates are able to obtain far more important positions in Chinese companies than would be possible in the U.S. Rather than starting with an internship, then progressing to an entry-level position and slowly advancing through the ranks, American graduates are able to skip a rung or two on the corporate ladder and gain invaluable business experience that would have taken considerably longer in the U.S.

The benefits, however, are not one-sided. As Chinese businesses attempt to enter U.S. markets, American graduates, with their keen understanding of Western society and culture, are perceived as uniquely qualified to act as company liaisons. Moreover, the assertiveness of U.S. graduates, at least compared to their Chinese counterparts, is highly valued by Chinese businesses seeking to drive their companies forward.

Language, interestingly, has not been much of a barrier, even for those with limited or even no knowledge of the Chinese language; many Americans working in China become conversant in Chinese in a short period of time.

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As reported by The Economic Times, due to an aging workforce and gaps in its IT, engineering, and medical sectors, Australia is encouraging skilled Indian professionals to apply for permanent residency. Indian nationals already comprise the second largest immigrant population in Australia, and currently the country’s medical system relies considerably on Indian healthcare professionals.

Although Australia recently decreased the number of available visas to skilled workers because of the economic downturn, this move is seen as temporary and numbers are expected to increase once the economy recovers. Australian officials note that even at lower numbers it is still running one of its biggest skilled migration programs in years.

Australia is also cracking down on scholastic institutions, particularly vocational schools, that do not provide adequate skills and language training to Indian students. Because a skills test will be required next year in addition to the English language test, the aim is to ensure that international students receive quality schooling that eventually will allow them to apply for permanent residency.

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Due to the rise in H1N1 virus (“swine flu”) carried by foreign visitors, travelers to India must disclose whether they are undergoing treatment for the illness or have shown symptoms, and, if so, they may be quarantined, hospitalized or denied a visa. As reported by Thaindian News, of India’s 340 reported H1N1 cases, 260 individuals caught the illness abroad, 111 coming from the United States.

Although to date no one has been denied a visa, Indian officials are advising that infected persons be cured before applying for a visa. Indian embassies have been issued guidelines concerning visas and the flu which, according to the World Health Organization, has been reported in 135 countries and claimed at least 800 lives.

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Price gouging by illegal manpower brokers, mainly based in Malaysia, has increased immigration costs for Bangladeshi workers seeking employment in Libya. Brokers will purchase large quantities of Libyan work visas then sell them at inflated rates to workers and employment recruiters. Normally, workers’ migration costs average 100,000 to 120,000 Bangladeshi Taka (1,455 -1,746 USD). However, some workers complain of being charged twice that amount.

Recruiting agencies believe that if they could go directly to the government, visa costs would decline. Libya’s Expatriates’ Welfare and Oversees Employment Minister said workers’ failure to protest costs was an issue, but claimed no knowledge of increased costs. He stated he would monitor the situation for the next two months.

The Daily Star reports that these unregulated broker practices coupled with the economy’s decline has resulted in many foreign governments limiting Bangladeshi workers’ ability to obtain work. The first five months of 2008 saw 378,994 Bangladeshis seek employment overseas, while only 212,332 have done so this year.

Each day about 300 Bangladeshi workers leave for Libya, which recently began building infrastructure projects worth over $100 billion. Libya estimates the projects will employ around 200,000 workers in two years. Libya’s government has begun hiring Bangladeshi workers, and last December recruited 20,000 Bangladeshi workers.

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As reported by China Daily, police in the Chinese city of Guangzhou have been closely monitoring residential and business areas inhabited by foreigners, looking for individuals without stay permits or holding fake passports. Concerns over illegal immigration, particularly crimes committed by foreigners, have resulted in police stepping up efforts to curb the practice. Officials from Guangzhou Intermediate People’s Court said that one-third of fraud cases between 2002 and 2008 were committed by foreigners.

The police campaign has caused tension in the city’s African communities, resulting in protests over an unconfirmed death of a Nigerian man during a passport check. Police officials have only confirmed two injuries; one involved a man allegedly involved in illegal money operations who injured himself as he attempted to evade a passport check.

Each year, over one million people enter or exit through the ports of Guangzhou, a major trading hub for foreigners, especially from the Middle East and Africa. A local university estimates that over 20,000 Africans with valid travel documents reside in the area, although the overall number is higher because many do not have visas.

To assist foreigners, the entry and exit administrative authority opened an online service where they can apply for permit extensions. Foreigners traveling or residing in the area should always carry their passports and comply with registration procedures.

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Recent violence in Urumpqi, in China’s Xinjiang Uyghur Autonomous Region, resulted in The State Department issuing a Travel Alert in the area until August 10, 2009. Americans in that area are advised to avoid demonstrations and large gatherings, remain indoors and avoid unnecessary movement in the city. Those planning on traveling to the area have been advised to defer their travel to the region.

While there is no indication of violence directed at U.S. citizens, Chinese state media has reported over 150 deaths and over 1,000 injured. Although there is an increased security presence, further violence might occur.

The State Department has recommended that Americans register through its website with whichever office is nearest: the U.S. Embassy in Beijing, the U.S. Consulate General in Chengdu, the U.S. Consulate General in Guangzhou, the U.S. Consulate General in Shanghai, or the U.S. Consulate General in Shenyang.

Travelers can obtain information on security conditions by calling, toll free, (888) 407-4747, in the U.S. or, if outside the United States and Canada, (202) 501-4444 - toll charges will apply.

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Singapore’s Ministry of Manpower has announced the July 1, 2009 opening of a new Employment Pass Services Centre (EPSC). The new EPSC will register and issue new long-term pass (LTP) cards to the following groups of LTP holders:

• Employment Pass holders;
• EntrePass holders;
• Personalised Employment Pass holders;
• Training Employment Pass holders;
• Work Holiday Pass holders; and
• Dependant Pass and Long Term Visit Pass holders.

Existing LTP holders belonging to the above groups will be issued with new LTP cards when their passes are renewed.

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A review conducted by Australia’s Department of Immigration and Citizenship regarding the student visa program found that Indian students breached their visa conditions at a rate three times higher than the average breach rate. As reported by The Australian, the review ranked Indian students alongside Bangladeshis and Cambodians as a level-four risk, which is the second highest risk category (no country currently ranks at the highest risk category).

As a result of these findings, rules for Indian students have been tightened: Indian students now must prove they have enough money to support themselves for the duration of their studies and must pass stricter English language tests. Critics of the tightened standards argue that they fail to distinguish between university students and vocational training students (who account for almost 80% of all Indian students in Australia).
 

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As reported at philstar.com, the Philippines’ Bureau of Immigration is introducing a Special Visa for Employment Generation (SVEG), to be officially launched on July 3. The SVEG is available to qualified non-immigrant foreigners who will employ at least 10 Filipinos in a lawful and sustainable enterprise, trade or industry. Qualified foreigners who are granted the SVEG will be considered special immigrants with multiple entry privileges and conditional extended stay privileges.

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The Australian government’s 2009-10 budget  includes a 20% increase in application charges for a number of visa categories, effective July 1, 2009. This measure will increase revenue by $400 million (Australian) over four years and is intended to help offset the costs associated with operating the migration and temporary entrant program.

A list of visa application charges is available on the Department of Immigration and Citizenship website.

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Due to the prevalence of fraudulent visas and passports, the Indian government is planning to install magnifying equipment and ultraviolet lamps at all international airports in order to more accurately verify the authenticity of travel documents. As reported by the Press Trust of India, other steps being taken at India’s international airports are the installation of new computer software (to verify passengers’ passport details) and additional training of immigration officers.

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As reported by The Japan Times, representatives of municipalities and human rights groups have voiced their opposition to government-sponsored immigration bills, on the grounds that the bills will violate foreigners' rights and lead to “excessive control” over them. Under the current system, local ward offices handle alien registration; the new bills would transfer responsibility to the Justice Ministry. Hiroko Uehara, the former mayor of the city of Kunitachi in western Tokyo, stated that centralizing the responsibility for alien registration would lower the quality of service for foreign residents. "Municipalities have so far made an effort to provide, at their own discretion, services to foreign residents," Uehara commented. "But if immigration takes control of registration, all that effort will be lost."

For details of the immigration bills at issue, see our previous entry about the proposed changes.

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The Australia Government’s Department of Immigration and Citizenship has announced changes to its Subclass 457 employer sponsorship program. Effective May 15, 2009, Australian Standard Classification of Occupations (ASCO) major groups 5 to 7 no longer can be nominated under the Subclass 457 Standard Business Sponsorship (SBS) arrangements. If an employer is interested in employing a temporary overseas worker in ASCO groups 5 to 7, the employer may seek to enter into a labor agreement. Further details about the changes are available on the department’s webpage entitled “Frequently Asked Questions about changes to Subclass 457 program – Change to pathways for ASCO 5-7 Occupations.”

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As reported by the Associated Press, China has implemented new visa regulations for U.S. citizens, effective May 4. A notice on the website for the Chinese Embassy and its consulates in the U.S., dated May 3, stated that all visa applications now will require six business days to process, with express and rush services for visa applications suspended until further notice. Visa applicants also must fill out a form declaring which countries and U.S. states they have visited during the preceding two weeks. The regulations appear to apply to all Chinese visas, including tourist and business categories.

Chinese Foreign Ministry spokesman Ma Zhaoxu declined to comment on the specific visa changes for U.S. nationals, apart from saying that "relevant adjustment [to the visa policy] is non-discriminatory and is not targeted at any country. The adjustment of visa policy will not affect the normal entry of foreigners and exchanges of people."

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As reported by The Moscow News Weekly, over the past several months it has become more difficult for companies to hire and retain foreign employees in Russia. A major issue cited by various foreign business associations is that the enforcement of migration rules can be unpredictable. For example, the Federal Migration Service has become stricter in enforcing certain rules: Two years ago, diplomas attesting to the applicant's educational qualifications were required only for language teachers, but since October 2008, the rule is being enforced for all professions.

There also are concerns about the quota system for work permits and the bureaucratic obstacles that employers sometimes encounter with the system. One possible solution is to give certain white-collar employees from the European Union, the United States and Japan "green cards" that would exempt card holders from the quota system. The Federal Migration Service has drafted a bill along these lines that may be introduced in the Duma in July.

Another reason for the difficulties is the procedure by which representative offices hire foreign workers. A representative office is issued a permit by an accrediting body (such as the Chamber of Commerce and Industry or the State Registration Chamber) which states how many foreign employees the representative office may hire. Under this arrangement, foreign employees working for the representative office do not receive work permits, but rather an accreditation card from the accrediting body. Recently there have been reports of police officers questioning the validity of these accreditation cards during their routine document checks in the streets. The Japan Business Club and the Association of European Businesses have been advising their members to obtain work permits for accredited foreign employees working in representative offices.

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The Australian government has enacted amendments that will increase the range of visas and citizenship provisions available to same-sex couples. Amendments to the Immigration (Education) Act 1971, Migration Regulations 1994 and Migration Act 1958 will take effect on July 1, 2009. Key changes to migration legislation include:

• a new definition of spouse, applying to opposite-sex married couples;
• a definition of de facto partner, applying to both same-sex and opposite-sex de facto couples;
• new definitions of parent and child which will include recognition of certain parent-child relationships via artificial conception procedures and surrogacy arrangements;
• a new definition of member of the family unit, recognizing de facto partners (same and opposite-sex) as family members;
• a simplified and more equitable visa framework. All visas that currently include provisions for spouse will be available to opposite-sex and same-sex de facto partners alike.

Further details about the changes are available on the Department of Immigration and Citizenship (DIAC) website.

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Effective March 28, application forms for any temporary Australian visa must meet new health requirements, the Australian Visa Bureau reports. The working holiday visa and the holiday visa are affected by these changes. Changes to the health requirements include:

• revised “country risk levels” for tuberculosis;
• changes to “classroom requirements” for applicants seeking to work in the education industry; and
• tests for applicants seeking to study as a dentist, nurse or doctor.

The revised health requirements and the revised health procedures advice manual are available on the Department of Immigration and Citizenship website.

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Due to planning levels being achieved, some occupations have been removed from the Permanent Sponsorship and Provisional Sponsorship lists of the South Australian sponsored visa program, the Australian Visa Bureau reports. One occupation (hairdresser) was removed from the Permanent Sponsorship list, and several occupations (including construction project manager, statistician, health information manager, social professional, hairdresser and various scientist positions) were removed from the Provisional Sponsorship list. These amendments follow the Australian federal government’s recent changes to the General Skilled Migration Program, which reduced the number of occupations listed on the Critical Skills List.

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Japan’s cabinet has signed off on a bill that, in an effort to prevent illegal entry, would transfer complete control of alien registration to the central government, according to The Japan Times Online. At present, the government is in charge of granting permission for residency, while municipalities are in charge of issuing alien cards. According to Justice Ministry estimates, municipalities have inadvertently issued registration cards to about 20,000 foreigners staying illegally in Japan, a problem that has been blamed on the state’s lack of legal authority to investigate registration data. Other features of the bill, which will soon be submitted to the Diet for enactment, include:

• harsher penalties for those living in Japan illegally;
• extension of the maximum period of stay for foreign residents from three to five years; and
• improved working status for foreign vocational trainees, who would be guaranteed legal protection for wages and labor conditions after engaging in on-the-job training programs for two months or longer.

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As reported in the Herald Sun, Immigration Minister Chris Evans stated that the global economic crisis is greatly reducing Australia’s need to import foreign workers. Less than 12 months ago Australia was struggling with a skills shortage, but now the country’s unemployment rate is on track to hit 7 % in 2010. A final decision on the 2008-09 immigration intake will be made by Cabinet ahead of the May Budget.

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Australia’s government has released draft regulations outlining new sponsorship obligations for employers of temporary skilled overseas workers who hold Subclass 457 visas. The Subclass 457 visa program is an uncapped scheme driven by market demand for employers to sponsor skilled overseas workers for up to four years.

A panel of industry, union and state government representatives will be assessing the proposed new regulations and will provide feedback to government. Proposed employer obligations to be considered by the panel include:

• Payment of a minimum salary to Subclass 457 visa holders;
• Payment of return travel costs for visa holders and their spouses; and
• Cooperating with inspectors exercising powers under the Worker Protection Act.
   

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While analysts still see strong economic reason to continue the inward flow of workers to Australia, the government is rethinking its policies regarding skilled migrants as the nation’s jobless rates rises. As reported in The International Herald Tribune, Australia’s Labor government has said that it would review its migrant intake, and the immigration minister, Chris Evans, has said that cuts would be modest at first but will continue to take into account any changes in public opinion.

The global economic downturn could be a rare opening for Australian businesses to attract top talent and fix skill shortages that have been a longstanding national issue. Stephen Roberts, an economist at Nomura, commented:

There's going to be an extraordinary pool of experienced people looking for work and a real chance for Australia to fill gaps in sectors like health and engineering, which are crying out for them.
 

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Australia’s Department of Immigration and Citizenship (DIAC) has replaced the visa labeling system with an online verification system, which is accessible by visa holders as well as by employers and other organizations. The Visa Entitlement Verification Online (VEVO) service allows Australian visa holders to check, free of charge, the status of their visas online. Due to the new system, DIAC will no longer issue paper labels for passports for Australian visa holders, and additional information regarding each visa (such as visa conditions) can be provided online and in a secure environment.

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Vietnamese information service Quan Doi Nhan Dan reported on the January 2009 visit to Vietnam by Australia’s Minister for Immigration and Citizenship, noting that the visit and the signing of the MoU signal stronger cooperation between Australia and Vietnam on immigration issues. This was the first visit to Vietnam by an Australian immigration minister since 2004.

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VOANews.com reports that the cities of Shanghai and Guangzhou are offering significant incentives to attract overseas Chinese and foreign professionals to fill high-level jobs. Shanghai will offer tax incentives to overseas professionals who agree to work at financial institutions in the city. Guangzhou, in southern coastal China, is offering cash incentives to mid- and upper-level professionals from overseas: the city has a $30 million fund to attract top talent in the manufacturing, technology, trade and finance sectors.

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Under Australia’s 176 visa scheme, migrants seeking permanent residence and who are unable to pass the immigration points test for independent migration are sponsored either by an eligible family member or by the government of an Australian state or territory. States sponsor the residence application of a migrant, in exchange for a commitment to live in the state for at least the first two years after migrating to Australia. Each state keeps a list of occupations deemed eligible for sponsorship.

Victoria has announced significant changes to its eligibility list  for the 176 visa, effective from January 12, 2009. This action reflects the changing labor market in Victoria, Australia’s second-most populous state. Off the list are many traditional occupations such as teachers, accountants, and several trades. Occupations new to the list include various engineering jobs, geologists, dental technicians, and social workers.

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