A new temporary-entry permit proposed by the Department of Immigration to allow overseas workers to stay in Australia for a year without a 457 visa would create "open slather" on the Australian labour market at the same time it faces growing unemployment, unions warn.

The Department of Immigration and Border Protection has reviewed skilled migration and in December, it quietly released its recommendations to relax entry requirements for short-term foreign workers. Its proposals include extending the six-month short term mobility visa to 12 months.

Workers protest about 457 Visas in 2013. The Department of Immigration will now allow overseas workers to stay in Australia for a year without the 457 visa. Credit:Jason South

The change would mean overseas workers would not have to apply for a 457 working visa, which imposes stricter entry requirements including English language tests. Employers are also required to demonstrate they have looked for local workers before giving jobs to employees from overseas, under a 457 visa.

CFMEU national secretary Michael O'Connor said proposals to abolish the requirement for language and skills tests for temporary overseas workers would worsen unemployment levels in Australia, particularly for young people.