Employer Sponsorship Obligations

Employers need to be aware of potentially significant sponsorship obligations which apply when they sponsor 457 or TSS 482 visa holders. Non-compliance can result in the cancellation of an existing sponsorship, refusal of a sponsorship renewal, fines and possibly court action. Below, we outline the main sponsorship obligations:

Costs of Sponsorship Approval, Recruitment and Nomination

The employer must not seek to recover or have another person pay for the cost of:

Obtaining sponsorship approval
Costs to nominate the 457/482 such as recruitment, Skilling Australians Fund (SAF), nomination application fee

Obligation starts: The date of approval of 457/482, or nomination if already the holder of a 457/482

Obligation ends: grant of further visa, grant of nomination for new employer or permanent departure

Equivalent Terms and Conditions of Employment

Conditions for 457/482 visa holders must be "no less favourable" than conditions for Australian permanent residents and citizens. Employees must either be paid at least $250,000 or a market rate salary determined by conditions which would apply to Australian citizens or permanent residents.

Obligation starts: 457/482 visa grant date, or upon nomination transfer if the employees already holds a 457/482 visa

Obligation ends: Cessation of employment, the approval of another visa, the successful nomination transfer to a different employer

Travel Costs

If the 457/482 visa holder is leaving the business and departing Australia, they are permitted to seek reasonable costs from the employer to pay the cost of travel. If the request is made ‘appropriately’, the employer is required to comply. The request needs to meet the following:

Specify the persons covered
Specify the country of passport they wish to travel - a copy of the passport from this country must also be provided
Be made whilst by the Department of Home Affairs or the 457/482 visa holder in writing
Be made before the visa holder departs Australia

The employer's obligation is to pay "reasonable and necessary" costs only. Such costs would usually involve:

Travel to the point of departure from Australia
Cost of return to the country of passport via economy class air travel
The costs must be paid within 30 days of request

Obligation starts: 457/482 visa grant date, or upon nomination transfer if the employees already holds a 457/482 visa

Obligation ends: The approval of another visa, the successful nomination transfer to a different employer, or permanent departure

Costs to Commonwealth - Location and Removal

This obligation would cover the cost of detection and removal incurred by the Commonwealth if the 457/482 visa holder overstays their visa. It only covers costs incurred between when the person becomes illegal and when they leave Australia. If return costs have already been paid by the employer, then only the difference between this and the actual cost is payable. A maximum limit of $10,000 is applicable for this obligation.

Obligation starts: The date person becomes unlawful

Obligation ends: 5 years from date person leaves Australia

Training

This is applicable to employers who have a valid standard business sponsorship that was granted prior to 12 August 2018. In this regard, such employers who were required to meet the relevant training benchmarks, in order to become an approved standard business sponsor, are required to continue with these provisions for each 12 month period following approval as a business sponsor.

Obligation starts: The date of approval of sponsorship

Obligation ends: When sponsorship approval expires

Cooperation with Inspectors

Employers are required to cooperate with Workplace Inspectors. The following would be considered a breach of this obligation:

Concealing the location of persons and documents
Obstructing inspector or preventing a person from assisting
Assaulting, intimidating or threatening inspectors

Obligation starts: The date the sponsorship was approved

Obligation ends: 5 years from ceasing to be a sponsor

Maintenance of Records

The employer is obliged to keep certain records, including:

Request for payment of return travel costs and when received
Details of payment of return travel costs - date, who for, amount
Details of notification to the Department of Immigration - when and how transmitted
Tasks undertaken by 457/482 holder and the location
Training provided to Australians working in the business

Obligation starts: The date of approval of sponsorship

Obligation ends: 2 years after ceasing to be a sponsor and there are no primary or secondary 457/482 holders

Notification to Department of Home Affairs

The employer must notify the Department of Home Affairs of certain events within 28 days of the event occurring. Some examples include:

Cessation or expected cessation of employment
Change to training which may affect approval as a business sponsor
Changes to the legal structure of the employer
Payment of return travel for a 457/482 visa holder
Insolvency/bankruptcy/administration

Obligation starts: The date of approval of sponsorship

Obligation ends: 2 years after ceasing to be a sponsor and there are no primary or secondary 457/482 holders