The Two-Year Work Obligation After a Visa 186: Rules and Exceptions

What is the two-year obligation on a Visa 186?

When a Visa 186 is granted, one of the conditions attached to the visa requires the visa holder to work for the sponsoring employer for a certain period after the visa is granted. This is often called the “two-year work obligation.”

Specifically, this condition requires:

• The visa holder to work for the employer who lodged the nomination for 2 years after the visa grant date (or after first entry into Australia, depending on the case).
• The work to be in the same or a related occupation to the nominated position.

This condition exists to make sure the sponsorship system is not misused — the employer invests in the sponsorship process and should benefit from retaining the employee for a reasonable period.

How is this obligation recorded in the visa?

The obligation is usually recorded as a specific visa condition in the visa grant letter. The visa holder should read the conditions listed in the DHA grant notification carefully.

A distinction to note: the Visa 186 is a permanent residence visa. This differs from many temporary visas — the Visa 186 has no expiry and allows you to live, work and study in Australia without limit. However, the two-year obligation is a separate requirement that does not affect permanent resident status.

What happens if you leave the employer before two years?

This is the most important practical question. Technically:

• Breaching the two-year obligation does not automatically cancel the Visa 186 or remove permanent resident status.
• However, it can be a ground for the DHA to cancel the visa if they decide to act.
• In practice, the DHA rarely cancels a Visa 186 simply because the holder moves to a new employer, particularly where there is a legitimate reason.

That said, breaching this obligation may affect your character record when applying to renew a travel facility or for citizenship, although in practice this too rarely happens.

Exceptions the DHA treats flexibly

The DHA recognises that it is not always possible to keep working with the sponsoring employer for two years. The following are typically accepted as legitimate reasons:

1. The employer becomes insolvent or ceases operating: this is entirely beyond the nominee’s control. The DHA understands this and cannot require the worker to keep working for a company that no longer exists.

2. The employer breaches labour rights: if the employer pays below the required rate, provides unsafe conditions, or breaches labour law, the nominee has the right to protect themselves and leave without being regarded as in breach.

3. Unfair dismissal: if the nominee’s employment is terminated by the employer, the obligation cannot be regarded as breached by the nominee.

4. Working conditions change significantly: for example, the company restructures, the position is eliminated, or the work location changes unreasonably.

Enforcement in practice

In practice, the DHA has no active mechanism to monitor compliance with the two-year obligation. The DHA does not require periodic reports from the employer or nominee on employment status. Checks mainly occur when:

• The nominee applies for citizenship and the DHA reviews their history.
• There is a complaint from a third party (for example, a former employer reports it).
• The DHA conducts a periodic compliance inspection.

This does not mean the obligation is unimportant — it means compliance is usually only examined in a specific context.

Advice for nominees

• If you must leave the employer before two years for a legitimate reason, document the reason fully in writing at the time it happens.
• Consult a migration agent before leaving to understand the risks and the best way to handle it.
• Do not leave the employer simply for higher pay without a clear plan for explaining it to the DHA if needed.