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457 visa program – Integrity Reforms – 14 September 2009

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Employer Obligations

There are a number of obligations that employers must comply with. These are set out below.

Employer Obligation

Explanation

Duration of obligation

Obligation to cooperate with inspectors

The standard business sponsor must cooperate with inspectors appointed under the Migration Act 1958

  • This obligation commences from the time a sponsor is approved.
  • This obligation ceases five years after the sponsorship ceases.

Obligation to ensure equivalent terms and conditions of

employment

The standard business sponsor must ensure that the terms and conditions of employment provided to a primary sponsored person are no less favourable than the terms and conditions the person provides, or would provide, to an Australian citizen or Australian permanent resident to perform work in an equivalent position in the person’s workplace at the same location.

  • If the nominated person holds a visa, this obligation commences from the time the nomination is approved.
  • If the nominated person does not hold a visa, this obligation commences from the time the visa granted.
  • This obligation ceases when the primary sponsored person ceases employment, or is granted a further substantive visa.

Obligation to pay travel costs to enable sponsored persons to leave Australia

The standard business sponsor must pay reasonable and necessary travel costs to enable the sponsored persons to leave Australia if the costs have been requested in writing by the department or the sponsored persons, and the costs have not already been paid by the sponsor in accordance with this obligation.

The costs will be considered reasonable and necessary provided they:

  • include travel from the primary sponsored person’s usual place of residence in Australia to the place of departure from Australia;
  • include travel from Australia to the country (for which the person holds a passport) specified in the request to pay travel costs; and
  • are paid within 30 days of receiving the request; and are for economy class air travel or, where unavailable, a reasonable equivalent.
  • If the nominated person holds a visa, this obligation commences from the time the nomination is approved.
  • If the nominated person does not hold a visa, this obligation commences from the time the visa granted.
  • This obligation ceases when another nomination is approved, a further substantive visa is granted or when the visa holder has left Australia and no longer holds the Subclass 457 visa

Obligation to pay costs incurred

by the Commonwealth to locate

and remove unlawful non-citizen

The standard business sponsor must pay costs incurred by the Commonwealth in locating and/or removing the primary or secondary sponsored persons from Australia, if the Minister has requested the payment by written notice. The sponsor is liable to pay the Commonwealth the difference between the actual costs incurred by the Commonwealth (up to a maximum of $10 000) less any amount already paid under the obligation to pay travel costs to enable sponsored persons to leave Australia

  • If the nominated person holds a visa, this obligation commences from the time the nomination is approved.
  • If the nominated person does not hold a visa, this obligation commences from the time the visa granted.
  • This obligation ceases when the primary sponsored person ceases employment, or is granted a further substantive visa.

Obligation to keep records

The standard business sponsor must keep records of its compliance with the other obligations. All of the records must be reproducible and some must be capable of verification by an independent person.

  • This obligation commences from the time a sponsor is approved.
  • This obligation ceases two years after the last sponsored person ceases with the sponsor.

Obligation to provide records and information to the Minister

The standard business sponsor must provide 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
  • on request and in the manner and timeframe requested by the Minister.
  • This obligation commences from the time a sponsor is approved.
  • This obligation ceases two years after the last sponsored person ceases with the sponsor.

Obligation to provide information to Immigration when certain events occur

The standard business sponsor must provide certain information to the department when certain events occur. This information must be provided by registered post or electronic mail, to a specified address and within certain timeframes of the event occurring.

  • This obligation commences from the time a sponsor is approved.
  • This obligation ceases when the sponsorship ceases, and where the employer is no longer sponsoring a visa holder.

Obligation to ensure primary sponsored person does not work in an occupation other than an approved occupation

The standard business sponsor must ensure that the primary sponsored person does not work in an occupation other than the occupation that is the subject of the most recent approved nomination for the person. If a sponsor wants to employ a primary sponsored person in a different occupation, the sponsor must lodge a new nomination in respect of that occupation for the primary sponsored person.

The standard business sponsor must also ensure that they do not engage the primary sponsored person’s services other than as an employee.

  • If the nominated person holds a visa, this obligation commences from the time the nomination is approved.
  • If the nominated person does not hold a visa, this obligation commences from the time the visa granted.
  • This obligation ceases when another nomination is approved, a further substantive visa is granted or when the visa holder has left Australia and no longer holds the Subclass 457 visa

Obligation not to recover certain costs from a primary sponsored person or secondary sponsored person

The standard business sponsor must not recover, or seek to recover, from the primary or secondary sponsored person, all or part of the costs (including migration agent costs):

  • that relate specifically to the recruitment of the primary sponsored person
  • associated with becoming or being a sponsor or former approved sponsor.

  • If the nominated person holds a visa, this obligation commences from the time the nomination is approved.
  • If the nominated person does not hold a visa, this obligation commences from the time the visa granted.
  • This obligation ceases when another nomination is approved, a further substantive visa is granted or when the visa holder has left Australia and no longer holds the Subclass 457 visa.

Sanctions

The table below describes action the department can take if a Subclass 457 sponsor fails to satisfy a sponsorship obligation.

Type of Action

Description

Sanctions for failing satisfy sponsorship obligations

If the standard business sponsor fails to satisfy a sponsorship obligation, the Minister may take one or more of the following actions:

  • bar the sponsor, for a specified period, from sponsoring more people under the terms of one or more existing approvals as a sponsor for different kinds of visas
  • bar the sponsor, for a specified period, from making future applications for approval as a sponsor in relation to one or more classes of sponsor
  • cancel one or all of the sponsor’s existing approvals as a sponsor
  • apply to a Court for a civil penalty order of up to $33,000 for a corporation and $6,600 for an individual for each failure
  • issue an infringement notice of up to $6,600 for a body corporate and $1,520 for an individual for each failure
  • require and take a security; or enforce a security already taken.

Other circumstances in which the Minister may take administrative action

There are a number of other circumstances (besides failure to satisfy a sponsorship obligation) in which the Minister may take the administrative actions described in the first three dot points above:

  • provision of false or misleading information to the Department of Immigration and Citizenship or the Migration Review Tribunal
  • the sponsor no longer satisfies the criteria for approval as a standard business sponsor or for variation of that approval
  • the sponsor has been found by a court or competent authority to have contravened a Commonwealth, State or Territory law
  • a primary sponsored person is found to have contravened a law relating to the licensing, registration or membership required in order to work in the nominated occupation.


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