AMBE Corporation Pty Ltd (Migration)

AMBE Corporation Pty Ltd (Migration) [2020] AATA 1565 (17 February 2020)
DECISION RECORD
DIVISION:Migration & Refugee Division
APPLICANT:  AMBE Corporation Pty Ltd
CASE NUMBER:  1801977
DIBP REFERENCE(S):  BCC2016/1786118
MEMBER:Peter Emmerton
DATE:17 February 2020
PLACE OF DECISION:  Adelaide
DECISION:The Tribunal sets aside the decision under review and substitutes a decision approving the nomination.

Statement made on 17 February 2020 at 4:18pm
CATCHWORDS
MIGRATION – nomination of an occupation (employer nomination) – Direct Entry Nomination stream – position of Retail Manager (General) – attempts to recruit suitably qualified and experienced Australian worker – proof of recruitment advertising – high staff turnover – relatively isolated location – decision under review set aside
LEGISLATION
Migration Act 1958, ss 245
Migration Regulations 1994, r 5.19
STATEMENT OF DECISION AND REASONS
APPLICATION FOR REVIEW

This is an application for review of a decision made by a delegate of the Minister for Immigration on 17 January 2018 to reject the applicant’s application for approval of the nomination of a position in Australia under r.5.19 of the Migration Regulations 1994 (the Regulations).
The applicant applied for approval on 19 May 2016. The requirements for the approval of the nomination of a position in Australia are found in r.5.19 of the Regulations which contains two alternative streams: a Temporary Residence Transition nomination (r.5.19(3)) stream and a Direct Entry nomination (r.5.19(4)) stream. If the application is made in accordance with r.5.19(2) and meets the requirements of either stream, then the application must be approved. If any of the requirements are not met then the application must be refused: r.5.19(5).
In this case, the applicant has applied for approval of a nomination, seeking to satisfy the criteria in the Direct Entry Nomination stream.
The delegate refused the application on the basis the applicant’s nomination did not satisfy r.5.19(4)(h)(ii)(C) of the Regulations. This is because they were not satisfied that the nominator had demonstrated that they had made adequate attempts to recruit suitably qualified and experienced Australian citizens or Australian permanent residents to the position who live in the same local area as that place.
The applicant appeared before the Tribunal, via video, on 17 February 2020, represented by Mr Riteshkumar Patel, joint Director/Owner, in a combined hearing with MRT file ref.1805358, to give evidence and present arguments. The Tribunal also received oral evidence from Mr Ankitkumar Pravinchandra Patel, the visa applicant. The Tribunal found all those presenting evidence to be credible and they appeared to answer questions in an open and honest manner without obfuscation.
The applicant was represented in relation to the review by its registered migration agent.
For the following reasons, the Tribunal has decided to set aside the decision under review and substitute a decision approving the nomination.
CONSIDERATION OF CLAIMS AND EVIDENCE
The issue in this case is whether the applicant meets the requirements for approval of the nomination under the Direct Entry nomination stream set out in r.5.19(4), which is extracted in the attachment to this decision. For the nomination to be approved all the requirements must be met.
In determining the applicant’s claims the Tribunal must first make findings of fact on material matters in dispute. This may involve an assessment of credibility and in so doing, the Tribunal is aware of the need and importance of being sensitive to the circumstances and the difficulties applicants often face before the Tribunal in their particular circumstances.
The applicants rely on the evidence given before the Tribunal together with written submissions and supporting evidence provided to the Tribunal and previously to the department.
The nominating entity runs a substantial fast food retail operation in suburban Perth, Western Australia comprising 3 individual retail outlets that are geographically separated. The total number of staff across the group, which is divided into 2 legal entities, is approximately 60 with an annual turnover in excess of $5m. The total number of staff employed in the store associated with this application is approximately 20 including the visa applicant with a current annual turnover of the 2 stores in this entity of approximately $3.5m. The 3 Directors of the organisation have ultimate responsibility for all 3 outlets across the 2 entities although it is asserted that only 1 of the Directors, Mr Riteshkumar Patel, is actively engaged in running the businesses. The other 2 Directors are investors, 1 of whom is currently looking for an additional business
The Tribunal notes that the total number of operational hours in the combined stores is substantial and like most fast food outlets, they operate 7 days per week for extended trading hours of 13 hours per day.
The visa applicant’s substantial responsibilities, previous experience, current years of management responsibilities, formal qualifications and attributes, clearly align with the duties associated with a Retail Manager (General), ANZSCO 142111.
The visa applicant possesses a Bachelor of Commerce and a Masters Degree of International Business.
The Tribunal is cognisant of the challenges associated with recruiting and retaining suitably experienced management and staff working in retail businesses with limited opportunities for advancement.
The Tribunal received and accepted evidence from the nominator, of the salary determination and recruitment processes. The Tribunal notes the associated proof of advertising, across a total of 4 print media and online sites, in support of their recruitment for the position. The Tribunal accepts that the internal national Red Rooster employment site was utilised. It also notes the statement provided by the nominator attesting to their recruitment efforts and associated challenges.
The Tribunal accepts that the employment contract does not include an express exclusion of the possibility of extending the period of employment beyond the initial 2 year minimum period with the provision for extension. The contract of employment, dated 15 July 2016 stated the salary as $55,000 plus 9.5% Superannuation. The Nominator asserted in the hearing that an additional amount between $2,000 and $3,000 is paid annually in a quarterly performance bonus.
The Tribunal perused popular employment web sites in order to ascertain the current state of the market in this field. The Tribunal observed a very large number of related vacancies, in a wide variety of locations and organisations currently under recruitment. The Tribunal is not without understanding of the specialist knowledge required in this unique area of retailing. The Tribunal is cognisant that many of the observed positions may appear to be equally or more attractive environments to some candidates than the nominated position in this relatively geographically isolated Perth, WA location.
The Tribunal notes that a ‘Satisfied’, RCB Certificate issued by the relevant certifying body. The date of the certificate is 11 May 2016.
The application is compliant: r.5.19(4)(a)
Regulation 5.19(4)(a) requires that the application for approval must be in the approved form, must be accompanied by the prescribed fee, and, where applicable, must include the required written certification relating to conduct that contravenes s.245AR(1). The application must also identify a need for the nominator to employ a paid employee to work in the position under their direct control.
The Tribunal finds that the application was lodged electronically using the elodgement facility. The nomination was made under the RSMS Direct Entry stream (r.5.19(4)(h)(ii)) and consequently no fee is payable. The Tribunal finds the applicant meets r.5.19(2).
The Tribunal notes that the retail business is operating on a substantial staffing ratio of approximately 18 retail assistants reporting directly to the visa applicant. The Tribunal accepts as evidence the staff turnover spreadsheet detailing the ongoing high staff turnover and the statement and evidence tendered regarding the large turnover levels experienced in this industry. Once again, the Tribunal notes the extended working hours associated with the mandated 7 day per week operation. The number of employees and the complexity of tasks associated with a retail operation of this size would in the experience of the Tribunal, strongly suggest the need for a General Manager.
The Tribunal notes that 1 of the 3 Directors states that his focus is upon the higher level duties associated with a Director level role, whilst the other Directors are investors in the stores, including the 1 store contained within the other business entity, AMBE Pty Ltd. The Tribunal accepts this statement made prior to the hearing and again during the hearing. The challenging logistical requirements of such a structure are self-explanatory.
It would appear logical that regardless of the skilful utilisation of technology, the 1 active Director is unable to undertake the daily duties of a General Manager unless present for the substantial operating hours. Nor is it likely that the operation could successfully sustain itself, maintain quality outputs or meet its’ legal responsibilities in regards to OH&S, safe food handling, franchising obligations and general HR matters without a relatively autonomous, locally employed General Manger ultimately overseeing the retail site.
The Tribunal is satisfied that the application has identified a need for a paid employee to work in the position of Retail Manager (General), under direct control of the applicant. The application has included the required written certification relating to conduct that contravenes s.245AR(1) Accordingly, the requirement in r.5.19(4)(a) is met.
Nominator is actively and lawfully operating a business in Australia: r.5.19(4)(b)
Regulation 5.19(4)(b) requires that the applicant is actively, lawfully and directly operating a business in Australia.
The Tribunal has been provided with a range of Business Tax Returns, and Profit and Loss Statements, including those produced for FY 2019, FY 2018 and FY 2017, all of which correlated. ASIC Registration details were also researched by the Tribunal for this business entity. The Tribunal checked the status of the listed ABN and perused the company web site. The Tribunal is satisfied that the applicant is actively, lawfully and directly, operating a business in regional Australia. Accordingly, the requirement in r.5.19(4)(b) is met.
Position is not labour-hire: r.5.19(4)(c)
Regulation 5.19(4)(c) applies to nominators whose business activities include those relating to labour hire to an unrelated business. In these cases, the nominated position must be within the business activities of the nominator. The Tribunal finds that r. 5.19(4)(c) is not relevant to the current nomination.
Term of employment of the visa holder: r.5.19(4)(d)
Regulation 5.19(4)(d) requires the nominee to be employed in the nominated position for at least 2 years full time, and the terms and conditions of that employment do not expressly exclude the possibility of an extension.
The Tribunal notes that the business appears to have substantial stable revenues and proportionally aligned profit. This supports the claim that the Director has been able to focus on other aspects of the operations as a direct result of the visa applicant’s engagement in the retail outlet he manages. It was also acknowledged during the hearing, by all parties, that the visa applicant brings additional skills to the business which have increased turnover.
The stability of the nominating entity in an ever increasingly competitive market, further attests to its’ ability to employ the visa applicant. Additional resilience is provided by business diversification across a number of product categories and 2 outlets in this business entity and another outlet in a similar associated entity. The Tribunal is satisfied that the business will be able to sustainably, employ the nominee for the required 2-year minimum period therefore r.5.19(4)(h)(i) is met.
The Tribunal has had regard to the Employment Agreement and position description. It is satisfied that the nominee will be appointed for a period of at least 2 years employment from grant of visa and the terms of employment do not include an express exclusion of the possibility of extending the period of employment.
The Tribunal observes that one of the potential challenges facing the business is retaining the visa applicant and the nominator’s obvious reliance upon their services. This is particularly critical, as the nominator is not working extensively in the store under the visa applicant’s management but overseeing it as a Director of the overall business.
The Tribunal is aware that the workforce is highly mobile and the specialist skills associated with this type of operation are highly sought after and are readily transferred between competing businesses. It is also cognisant of competitors cannibalising competing businesses and targeting their key staff in order to obtain a market advantage. The Tribunal notes the ongoing distortion of the employment market associated with the mining industry cycles and the net migration from WA to the eastern States.
No less favourable terms and condition of employment: r.5.19(4)(e)
Regulation 5.19(4)(e) requires that the terms and conditions of employment applicable to the nominated position will be no less favourable than those that are, or would be, provided to an Australian citizen or permanent resident performing equivalent work in the same workplace at the same location.
The Tribunal has been provided with the visa applicant’s employment contract. The Tribunal accepts that the nominee’s stated annual salary of $55,000 plus Superannuation at the rate of 9.5% as reflective of their qualifications and experience. It also notes the additional benefits regarding meal allowances provided to the applicant totalling approximately $7,000 - $8,000 per annum.
The Tribunal researched the salaries offered for similar positions and had regard for the salary determination evidence provided by the applicant. The remuneration appears to fall within the mid-quartiles of similar positions on offer. It is satisfied that the terms and conditions of employment are equivalent to other employees with the same experience performing equivalent work in the same workplace or a similar workplace. Accordingly the requirements of r.5.19(4)(e) are met.
No adverse information known to Immigration: r.5.19(4)(f)
Regulation 5.19(4)(f) requires that there is no adverse information known to Immigration about the nominator or person associated with the nominator; or it is reasonable to disregard any such information. For these purposes, ‘adverse information’ and ‘associated with’ have the meaning given in rr.1.13A and 1.13B. There is no evidence before the Tribunal that the applicant has anything but a satisfactory record of compliance with the immigration laws of Australia. Accordingly the requirements of r.5.19(4)(f) are met.
Satisfactory compliance with workplace relations laws: r.5.19(4)(g)
Regulation 5.19(4)(g) requires that the applicant has a satisfactory record of compliance with the laws of the Commonwealth, and of each State or Territory in which the applicant operates a business and employs employees in the business, relating to workplace relations. The Tribunal notes that there is no evidence before the Tribunal that the applicant has anything but a satisfactory record of compliance with workplace relations law in Australia. Accordingly the requirements of r.5.19(4)(g) are met.
Tasks of the position, genuine need for the position and training requirements r.5.19(4)(h)
Regulation 5.19(4)(h) contains alternative requirements. These are set out in detail in the attachment to the decision. As stated above the nomination was made under the RSMS Direct Entry stream and the Tribunal has proceeded to assess the application against the criteria in r.5.19(4)(h)(ii) which require that:
·the position and nominator’s business are located in regional Australia;
·there is a genuine need for the paid position under the nominator’s direct control which cannot be filled by a Australian citizen or permanent resident;
·the tasks of the position correspond to those of an occupation at the ANZCO skill level 1, 2 or 3; and
·a regional certifying body has advised the Minister about certain matters relating to the position.
The Tribunal has had regard to the substantial size and scope of the nominating entity’s business operations and the extended staffing hours required due to the mandated operating hours of the business across multiple sites. It is self-evident that the nominator cannot operate this growing combined business entity without a substantial and relatively self-contained general management structure in place. Under questioning, the nominator expressed a desire to establish an additional outlet and the fact that 1 of the other Directors is currently searching for an additional business.
The Tribunal is satisfied that there is a genuine need for the nominator to employ a paid employee to work in the position under the nominator’s direct control.
The Tribunal notes that the delegate refused the application on the basis the applicant’s nomination did not satisfy r.5.19(4)(h)(ii)(C) of the Regulations. This is because they were not satisfied that the nominator had demonstrated that they had made adequate attempts to recruit suitably qualified and experienced Australian citizens or Australian permanent residents to the position who live in the same local area as that place. The Tribunal has formed a different view based upon the substantial amount of evidence submitted prior to the hearing and substantiated at the hearing.
Evidence was presented to the Tribunal regarding the recruitment process and the subsequent lack of suitably qualified and experienced applicants other than the nominee, who was initially found as a result of the nominators network and subsequently elevated to the current role following the recruitment process. In addition, the applicant tendered evidence supporting the issues associated with a net drain of talent to the east coast and the distorted employment market resulting from this coupled with the mining boom cycles. The Tribunal acknowledges that there are a large number and range of retail management roles readily available in Perth and throughout Australia. The demands of the job, suburban location and hours of this role may not have proven overly attractive to some candidates. The relatively isolated location in Perth, Western Australia may also provide a negative employment circumstance further limiting the potential candidate pool.
The Tribunal again observes that a substantially more comprehensive evidence base was provided to it, than was presented to the delegate at the time of their decision. The Tribunal again acknowledges the employment market distortions created by the mining industry cycles in Western Australia and Eastern States population drift. The Tribunal is satisfied that the position cannot be filled by an Australian citizen or permanent resident. The Tribunal is satisfied that the nominator’s business is located in regional Australia.
Regulation r.5.19(4)(h)(ii)(D), requires that the tasks to be performed in the position correspond to those at ANZSCO skill level 1, 2 or 3. The Tribunal notes that the delegate did not reject the application on the basis of this regulation.
The Tribunal has reviewed both the relevant descriptors supplied in ANZSCO 142111 for Retail Manager (General) and the stated duties of the visa applicant. Once again, it notes that the business owners appear to occupy the role of Director in regards to this retail outlet. The Tribunal is also acutely aware of the substantial revenues of the business, the complexity of the systems and the diversity of the product offerings necessary for a successful fast food outlet of this type.

Additionally the substantial opening hours of the business coupled with the number of staff across multiple outlets, clearly indicates the need for a General Manager to operate and manage this business. This would by necessity most likely lead to a substantial degree of autonomy being associated with the role, as is reasonably expected of a General Manager in an ANZSCO level 2 designated position.
Whilst the visa applicant, would most likely report performance in all KPI areas via established systems and seek input from the Director of the business, this coincides with the Tribunal’s expectations of a Retail Manager (General) directly reporting to the Director of a business.
The Tribunal acknowledges that this is a substantially sized and complex retail operation with a relatively large annual turnover. It is in no doubt the visa applicant requires a degree of flexibility performing the many and varied work duties, as you might expect in such an operation. The Tribunal has concluded that a General Manager is required to oversee the retail business and does operate largely in-line with the ANZSCO 142111 specifications in order to meet logistic and work health and safety requirements whilst satisfying customer service, franchise commitments and product quality expectations.
The Tribunal notes the diverse range of business related documents, which acknowledge the visa applicant’s General Manager designation. It also observes the statements regarding the importance of role he occupies provided by the Directors of the business.
The position of Retail Manager (General), ANZSCO 142111, nominated by the applicant, is referred to in ANZSCO as a skill level 2 position and the Tribunal is satisfied that the visa applicant is operating at that level.
The Tribunal is satisfied that the applicant meets 5.19(4)(h)(i) and 5.19(4)(h)(ii).
The Tribunal has had regard to the satisfied Form 1404 issued by an RCB (WA Department of Training and Workforce Development), dated 11 May 2016 and is satisfied that the applicant has advised the Minister about matters relating to the terms and conditions of employment, the genuine need for the position and that the position cannot be filled locally.
Based on the findings above, the Tribunal is satisfied that the applicant meets the requirements of r.5.19 for approval of the nomination of the position in Australia.
DECISION
The Tribunal sets aside the decision under review and substitutes a decision approving the nomination.
Peter Emmerton

Member
ATTACHMENT - EXTRACTS FROM THE MIGRATION REGULATIONS 1994
5.19Approval of nominated positions (employer nomination)
…
(2)The application must:
(a)be made in accordance with approved form 1395…; and
(aa) include a written certification by the nominator stating whether or not the nominator has engaged in conduct, in relation to the nomination, that constitutes a contravention of subsection 245AR(1) of the Act; and
(b)be accompanied by the fee mentioned in regulation 5.37.
…
Direct Entry nomination
(4)The Minister must, in writing, approve a nomination if:
(a)the application for approval:
(i)       is made in accordance with subregulation (2); and
(ii)      identifies a need for the nominator to employ a paid employee to work in the position under the nominator’s direct control; and
(b)the nominator:
(i)       is actively and lawfully operating a business in Australia; and
(ii)      directly operates the business; and
(c)for a nominator whose business activities include activities relating to the hiring of labour to other unrelated businesses — the position is within the business activities of the nominator and not for hire to other unrelated businesses; and
(d)both of the following apply:
(i)       the employee will be employed on a full-time basis in the position for at least 2 years;
(ii)      the terms and conditions of the employee’s employment will not include an express exclusion of the possibility of extending the period of employment; and
(e)the terms and conditions of employment applicable to the position will be no less favourable than the terms and conditions that:
(i)       are provided; or
(ii)      would be provided;
to an Australian citizen or an Australian permanent resident for performing equivalent work in the same workplace at the same location; and
(f)either:
(i)       there is no adverse information known to Immigration about the nominator or a person associated with the nominator; or
(ii)      it is reasonable to disregard any adverse information known to Immigration about the nominator or a person associated with the nominator; and
(g)the nominator has a satisfactory record of compliance with the laws of the Commonwealth, and of each State or Territory in which the applicant operates a business and employs employees in the business, relating to workplace relations; and
(h)either:
(i)       both of the following apply:
(A)the tasks to be performed in the position will be performed in Australia and correspond to the tasks of an occupation specified by the Minister in an instrument in writing for this sub-subparagraph;
(AAA)the occupation is applicable to the person identified under subparagraph (a)(ii) in accordance with the specification of the occupation;
(B)either:
(I)the nominator’s business has operated for at least 12 months, and the nominator meets the requirements for the training of Australian citizens and Australian permanent residents that are specified by the Minister in an instrument in writing for this sub-sub-subparagraph; or
(II)the nominator’s business has operated for less than 12 months, and the nominator has an auditable plan for meeting the requirements specified in the instrument mentioned in sub-sub-subparagraph (I); or
(ii)      all of the following apply:
(A)the position is located in regional Australia;
(B)there is a genuine need for the nominator to employ a paid employee to work in the position under the nominator’s direct control;
(C)the position cannot be filled by an Australian citizen or an Australian permanent resident who is living in the same local area as that place;
(D)the tasks to be performed in the position correspond to the tasks of an occupation specified by the Minister in an instrument in writing for this sub-subparagraph;
(DA)the occupation is applicable to the person identified under subparagraph (a)(ii) in accordance with the specification of the occupation;
(E)the business operated by the nominator is located at that place;
(F)a body that is:
(I)specified by the Minister in an instrument in writing for this sub-subparagraph; and
(II)located in the same State or Territory as the location of the position;
has advised the Minister about the matters mentioned in paragraph (e) and sub-subparagraphs (B) and (C).

[2020] AATA 1565

17 February 2020

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Immigration

Administrative Law

Legal Concepts

Judicial Review

Statutory Construction

Procedural Fairness

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