Laksmanan Pty Ltd atf Laksmanan Family Trust (Migration)

Laksmanan Pty Ltd atf Laksmanan Family Trust (Migration) [2021] AATA 4901 (15 December 2021)
DECISION RECORD
DIVISION:Migration & Refugee Division
APPLICANT:  Laksmanan Pty Ltd atf Laksmanan Family Trust
CASE NUMBER:  1835582
HOME AFFAIRS REFERENCE(S):          BCC2016/3934936
MEMBER:Peter Emmerton
DATE:15 December 2021
PLACE OF DECISION:  Adelaide
DECISION:The Tribunal sets aside the decision under review and substitutes a decision approving the nomination.

Statement made on 15 December 2021 at 2:58pm
CATCHWORDS
MIGRATION–nomination – Cook – Direct Entry nomination stream – position is located in regional Australia – no adverse information – position associated with the nominated occupation is genuine – financial capacity to employ the nominee full-time for a minimum of 2 years –applicant lawfully operating a business in Australia – decision under review set aside
LEGISLATION
Migration Act 1958, ss 65, 140GB, 245AR
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 Home Affairs on 22 November 2018 to reject the applicant’s application for approval of the nomination of a position in Australia under reg 5.19 of the Migration Regulations 1994 (Cth) (the Regulations).
The applicant applied for approval on 22 November 2016. The requirements for the approval of the nomination of a position in Australia are found in reg 5.19 of the Regulations which contains two alternative streams: a Temporary Residence Transition nomination stream (reg 5.19(3)) and a Direct Entry nomination stream (reg 5.19(4)). If the application is made in accordance with reg 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: reg 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)(d)(i) of the Regulations because they were not satisfied that it had not been demonstrated that the nominator had the financial capacity to ensure that the employee would be employed on a full-time basis in the position for at least two years.
The applicant represented by Mr Balasubramaniam Laksmananan, Director, Laksmanan Pty Ltd atf Laksmanan Family Trust, appeared before the Tribunal, via video, on 15 December 2021 in a combined hearing with MRT file ref. 11900361 to give evidence and present arguments. The Tribunal also received oral evidence from Mr Satwinder Singh Khinda, the visa applicant.
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 individual 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 modest Indian cuisine restaurant in regional Joondalup, Western Australia, 25 kilometres from the Perth CBD.
The Tribunal accepts the evidence tendered, that the revenues are earned through provision of restaurant food and alcohol.
The visa applicant’s substantial responsibilities, formal qualifications, attributes, and substantial experience align with the duties of a Cook, ANZSCO 351411, Skill level 3.
The visa applicant possesses a Certificate lV in Hospitality-Commercial Cookery.
The Tribunal is cognisant of the challenges associated with recruiting and retaining suitably experienced staff and working in specialist restaurant and hospitality establishments.
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 ENS Direct Entry stream (r.5.19(4)(h)(i)) and the relevant fee was paid. The Tribunal finds the applicant meets r.5.19(2).
The Tribunal notes that the business is currently operating on a modest staffing ratio of 4 full-time and part-time employees. There is currently only 1 cooking position in addition to the Chef owner. The Tribunal acknowledges that finding and subsequently retaining an individual with the visa applicant’s experience, qualifications and competencies may be very challenging in the current employment environment.
The Tribunal is satisfied that the application has identified a need for a paid employee to work in the position of Cook ANZSCO 351411, under direct control of the nominator. 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 substantial range of Financial documentation including ATO Taxation Returns for FY 2019 and FY 2020, Profit and Loss and Balance Sheet documents for FY 2019, FY 2020 and FY 2021 the corresponding period and current BAS statements, all of which correlated in an appropriate manner.
ASIC Registration details for this business entity were researched by the Tribunal. The Tribunal checked the status of the listed ABN, 18 247 746 754 and perused the company web site. It was first registered 17 March 2008, is currently registered and due for review on 17 March 2022. 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 delegate refused the application on the basis the applicant’s nomination did not satisfy r.5.19(4)(d)(i) as they were not satisfied that the nominator had demonstrated that the nominee would be employed on a full-time basis for at least 2 years under the direct control of the nominator. The delegate formed the view that insufficient evidence was provided to demonstrate the financial capacity of the nominator to undertake the requirements of r.5.19(4)(d)(i).
The Tribunal has formed a different view having considered substantially more evidence that was presented to it, than was given to the delegate at the time of their decision. The Tribunal notes that 5 years have passed following the submission of the original application and the original associated financial documentation. There has been a maturation of the business in that subsequent time-period. There has been substantial restructuring and a downsizing of staff to make the organisation more profitable.
The Tribunal observes that the financial position for the nominator improved by 400% in profit between FY 2019 and FY 2020. Both years were profitable and incorporated the wages and oncosts of the visa applicant. The Tribunal notes a downward swing into unprofitability for FY 2021 due to a major tax deductable purchase under the “Instant Asset Write-Off” scheme and a substantial increase in wages. The Tribunal accepts the evidence presented at the hearing that the added expenses were a direct result of a major expansion of the restaurant. The scheme mentioned was initiated by the Federal Government, designed to stimulate the economy. Without these 2 single year anomalies the P&L would have remained in profit.
The Tribunal observes that the current financial documentation shows an increasingly profitable and relatively stable small business aside for the most recent fore mentioned anomaly. This is in part due to the reduction in wages resulting from restructuring combined with a substantial expansion of the premises. It also observes that the visa applicant has been employed during this time, therefore the Balance Sheet and Profit and Loss documents incorporate his costs.
The Tribunal accepts as fact that the business, like many businesses was impacted as a direct result of Covid-19, as substantiated by the BAS statements. The BAS documents demonstrate, as reasonably expected, a drop in sales due to enforced periods of lockdown associated with the Covid-19 pandemic, which quickly rebounded to normal revenue levels post lockdown. The Tribunal has formed a view that an organisation’s viability should not be judged solely upon the financial circumstances which resulted from the Covd-19 pandemic.
The nominating entity’s longevity in an ever increasingly competitive market, attests to its’ ability to employ the visa applicant. The niche market in which it operates combined with its’ multi-layered service model potentially adds an additional level of resilience. The Tribunal notes that it is more than 5 years since the original application was submitted and the business continues to operate.
The Tribunal has had regard to the Employment Agreement dated 4 August 2021 and the detailed 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. It is again reminded of the more than 5 years since the original application. The passage of time has itself shown that the reason for the delegate’s concerns has demonstrably dissipated.
The Tribunal observes that one of the potential challenges facing the business is retaining the visa applicant with their unique competencies and experience and the nominator’s obvious reliance upon their services. This is particularly evident when considering the acknowledged challenges associated with recruiting and retaining similar individuals in Australia.
Current media and business reports analysing consumer confidence and employment data, coupled with present time job vacancies and recruitment challenges demonstrate a deficit of suitably qualified potential employees in many sectors. This appears to be one such sector. The problem is exacerbated if an organisation is reliant upon temporary or permanent immigration as part of their labour source. Business, Media, and Government reports are being circulated which indicate this is starting to be a drag upon business development. The Tribunal has referenced the National Skills Commission Report which supports this conclusion, dated 21 July 2021.[1]
[1] National Skills Commission Vacancy Report, June 2021, Release date: 21 July 2021
The Tribunal upon researching a popular employment website observes that there are currently 13,000 related roles on offer nationally and approximately 10% of these roles are located in Western Australia.
The Tribunal is aware that the workforce is relatively mobile. The specialist skills associated with this type of operation are highly sought after and readily transferred between competing businesses. There is a strong network which operates within this industry which has the effect of making it easy to entice valuable staff to join a competitor’s organisation.
The Tribunal acknowledges the statement made by the nominator during the hearing, that he would employ more staff if they were available, and he continues to advertise to fill current vacancies.
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)(d) is met.
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 current employment contract, stating a salary of $62,415 plus Superannuation at the current rate of 10%. The Tribunal accepts that the nominee’s current annual salary of $62,415 as stated by the nominating entity, as reflective of their qualifications, the role they undertake and their experience.
The Tribunal researched the salaries offered for similar positions and accepted the salary research date presented by the nominator. The remuneration appears to fall within the mid to upper 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 reviewed both the relevant descriptors supplied in 351411 for Cook and the stated duties of the visa applicant. The Tribunal acknowledges that the ANZSCO descriptors are a guide, not a mandatory definitive reference.
The Tribunal is satisfied that the tasks will be performed in Australia and that the position remains available to the visa applicant and he continues to function within the specified position. The Tribunal is satisfied that this occupation corresponds to the tasks of an occupation specified by the Minister in an instrument in writing for this sub-sub-paragraph.
The Tribunal acknowledges that this is a relatively small operation with a modest level of annual turnover and a modest overall profit margin. It is in no doubt the visa applicant requires a degree of flexibility and subsequent autonomy performing the many and varied work duties, as you might expect in such an operation.
The Tribunal has had regard to the size, scope, and the design of the nominating entity’s business operation. It is self-evident that the nominator cannot operate this growing business without a substantial reliance upon the visa applicant and a small number of similarly experienced and skilled staff. It is a “hands-on’ client focussed industry which ultimately requires customer focussed employees with a very specialised skill set.
The Tribunal has concluded that a Cook is required to perform this aspect of the business and does operate largely in-line with the ANZSCO 351411. The position of Cook, ANZSCO 351411, nominated by the applicant is referred to in ANZSCO as a skill level 3 position and the Tribunal is satisfied that the visa applicant is operating at that level. The Tribunal is satisfied that there is a genuine need for the nominator to employ the person identified under subparagraph (a)(ii), as a paid employee, to work in the position under the nominator’s direct control.
The Tribunal received and accepted evidence from the nominator, of the salary determination and recruitment processes. The Tribunal notes the associated proof of advertising in support of their recruitment for the position using popular major media solutions and print media, coupled with professional and personal networks.
The Tribunal was provided with analysis explaining why the visa applicant was the appropriate candidate for the role.
The Tribunal acknowledges that there are a substantial number and range of similar roles readily available in Western Australia and throughout Australia. The relatively specialised skill set may also provide a negative recruitment circumstance. Additionally, Western Australia may not be perceived as the optimal location for employment and advancement in this vocation, further limiting the potential candidate pool available.
The Tribunal reiterates that substantially more comprehensive evidence was provided to it, than was presented to the delegate at the time of their decision, in part because of the passage of time since the original application was submitted.
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 has reviewed both the relevant descriptors supplied in ANZSCO 351112 for Cook and the stated duties of the visa applicant. It has in addition perused the visa applicant’s Resume’ on the original visa application form. The Tribunal once again acknowledges that the ANZSCO descriptors are a guide, not a mandatory definitive reference.

The position of Cook, ANZSCO 351411, nominated by the applicant is referred to in ANZSCO as a skill level 3 position and the Tribunal is satisfied that the visa applicant is operating at that level.
The Tribunal has had regard to Form 1404 issued by an RCB (Skilled Migration WA Department of Training and Workforce Development). The date of the “Satisfied” Certificate is 5 December 2016, the Tribunal 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.
The Tribunal is satisfied that the applicant meets 5.19(4)(h)(ii).
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).

[2021] AATA 4901

15 December 2021

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