Sponsor Obligations

Each employer that is approved as a business sponsor must comply with certain obligations set out in the relevant legislation. Businesses who do not comply with these obligations may face significant penalties or criminal sanctions.

Co-Operate

|Co - Operate with Inspectors

 

Duration
Commences on the day sponsorship is approved. Ceases five years after the sponsorship expires

Explanation
The sponsor must cooperate with inspectors who are appointed under the Migration Act1958 for the purpose of: investigating whether a sponsorship obligation is being (or has been) complied with; whether sponsors have hired illegal workers; and/or other relevant circumstances that could lead to administrative action by the Department of Immigration and Border Protection (The Department)

The inspector’s powers include the right to enter premises, inspect work, interview persons and require documents to be produced for inspection.

Terms

|Ensure equivelant terms and conditions of employment

 

Duration
If the sponsored employee already holds a subclass 457 or 482 visa: Commences from the time the nomination is approved.
If the sponsored employee does not hold a subclass 457 or 482 visa: Commences from the time the visa is granted.

Ceases when the visa holder ends employment; or is granted a further substantive visa (other than a subclass 457 or 482 visa.

This obligation does not apply to a sponsored employee who is receiving a salary above the applicable high income threshold. 

Explanation
The sponsor must ensure that the terms and conditions of employment provided to a sponsored employee are:

  • no less favourable than the terms and conditions the sponsor provides, or would provide, to an Australian citizen or Australian permanent resident to perform work in an equivalent position in the sponsor’s workplace at the same location AND
  • no less favourable than the terms and conditions offered to the sponsored employee in support of the relevant nomination application that was approved by The Department.

Pay Travel

|Pay travel costs for sponsored person to leave Australia

Duration
If the sponsored employee already holds a subclass 457, 482, 401 or 428 visa: Commences from the time the nomination is approved
If the sponsored employee does not hold a subclass 457 or 482 visa: Commences from the time the visa is granted.

Ceases when the sponsored employee obtains another nomination OR is granted a further substantive visa (not a subclass 457 or 482 visa) OR has left Australia and no longer holds the subclass 457 or 482 visa.

Explanation:
The sponsor must pay reasonable and necessary travel costs to enable the sponsored employee (and any dependents included on that employee’s subclass 457 or 482 visa) to leave Australia - IF the costs have been requested in writing by the « Department of Home Affairs or any of the sponsored persons, and the sponsor has not already paid the costs.

Costs are considered reasonable and necessary if they:

  • include travel from the sponsored employee’s usual place of residence in Australia to the place of departure from Australia;
  • include travel from Australia to the country (for which the sponsored employee holds a passport) specified in the request to pay costs;
  • are paid within 30 days of receiving the request;
  • are for economy class air travel or, where this is unavailable, a reasonable equivalent.

Keep Records

 

Duration
Commences on the day sponsorship is approved.

Ceases two years after the sponsorship ends and the sponsor is no longer sponsoring a 457 or 482 visa holder.

 Explanation
The sponsor must keep records of its compliance with all sponsorship obligations, as well as a copy of the sponsored employee’s employment contract, a record of tasks performed by the sponsored employee in the nominated occupation, the location of the sponsored employee’s employment, and the sponsor’s compliance with the required training benchmarks.

All records kept must be reproducible, and some must be capable of verification by an independent person.

Provide Records

 |Provide records and information to the Minister

Duration
Commences on the day sponsorship is approved

Ceases two years after the sponsorship ends and the sponsor is no longer sponsorin

 Explanation
The sponsor must provide to the Minister, IF the Minister makes a written request, records or information that goes to determining whether:

  • a sponsorship obligation is being, or has been, complied with; AND
  • other circumstances, in which the Minister may take administrative action, exist or have existed

The records or information must be provided on request, and in the manner and timeframe requested by the Minister.

Give Information

|Provide information to the Department when certain events occur

Duration
Commences on the day sponsorship is approved

Ceases when the sponsorship ends and the sponsor is no longer sponsoring a visa holder

 Explanation
The sponsor must inform the « Department of Immigration» when certain changes in circumstances occur, for example:

  • the sponsored employee ceases employment with the sponsor;
  • there is a change in work duties carried out by the sponsored employee;
  • the sponsor’s legal entity ceases to exist, or there is a significant change to the business e.g. appointment of a new company director;
  • the sponsor’s business becomes insolvent;
  • the sponsor’s address or contact details change;
  • the training benchmark information supplied to the « Department of Immigration» in support of the sponsorship application changes.

This information must be provided to The Department by post or email, usually within 28 days of the occurrence of the relevant event or change in circumstances.

Occupation

|Ensure the sponsored employee works only in the nominated occupation

 Duration
If the sponsored employee already holds a visa: Commences on the day the nomination is approved.
If the sponsored employee does not already hold a visa: Commences on the day the visa granted.

Ceases when the sponsored employee obtains another nomination OR is granted a further substantive visa (other than subclass 457 visa) OR has left Australia and no longer holds the subclass 457 visa.

 Explanation
The sponsor must ensure that the sponsored employee works only in the occupation specified in the most recently approved nomination for that person.

If a sponsor wants to employ a sponsored employee in a different occupation, the sponsor must lodge a new nomination application.

The sponsor must also ensure that it does not engage the sponsored employee’s services in any capacity other than as an employee.

Recover Costs

|Must not recover certain costs from a sponsored employee

Duration
Commences on the day sponsorship is approved.

Ceases when the sponsorship ends and where the sponsor is no longer sponsoring

Explanation
The sponsor must NOT recover (or seek to recover) from the sponsored employee, or the dependents included on that employee’s visa, all OR part of the costs (including migration agent costs):

  • relating specifically to the recruitment of the sponsored employee; or
  • associated with becoming or being a sponsor or former sponsor;
  • associated with any nomination application, including TCC charges.

Training

|Continue to meet training benchmark requirements

Duration
Commences on the day sponsorship is approved.

If the sponsorship approval period is less than six years: Ceases three years after the sponsorship is approved
If the sponsorship approval period is at least six years: Ceases six years after the sponsorship is approved

Explanation
Starting from the sponsorship approval date (and renewing on each anniversary of this date):

In each 12 month period during which the sponsor employs a subclass 457or 482  visa holder (for either the whole period or part thereof), the sponsor must meet the benchmarks set by The Department in relation to its training of Australian employees. Either or both of:

  • spending the equivalent of at least 1% of its payroll on training its Australian employees; or
  • contributing the equivalent of at least 2% of its payroll to a relevant industry training fund (or acceptable equivalent).

Note
These obligations must be met in the 12 month period leading up to 12 August 2018 when the new Training Contribution Charge came into force. For periods after 12 August 2018 training benchmarks no longer apply, but it is strongly recommended businesses comply with these obligations to ensure they operate according to 'best practice' principles.

Example: if your 12 month period of training started in January 2018, we recommend you comply with and retain records for the entire period until January 2019. Whilst not stricktly legislated in this way, we anticipate the Department may cause problems for those who do not.

 

Information provided on this site - page is not legal or immigration advice and you should seek assistance specific to your individual circumstances.