Obligations for Temporary Business Sponsors

Obligations for businesses sponsoring employees for 457 visas have been changed significantly from 14 September 2009.

The new sponsorship obligations apply to all current and new sponsors.

The obligation to pay health costs does not apply to new 457 visas granted after 14 September 2009, but the Department of Immigration has indicated that employers of holders of 457 visas granted before 14 September remain obliged to pay health costs.

The main sponsorship obligations are as follows:

Cooperation with Inspectors

Employers are required to cooperate with Workplace Inspectors. The following would be considerd 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

Commences: date of approval of sponsorship

Ceases: 5 years from ceasing to be a sponsor

Equivalent Terms and Conditions of Employment

Conditions for 457 visa holders must be "no less favourable" than conditions for Australian permanent residents and citizens

Employees must either be paid at least $180,000 or a market rate salary determined by conditions which would apply to Australian citizens or permanent residents.

Commences: date of approval of 457, or nomination if already the holder of a 457

Ceases: Cessation of employment or grant of further visa

Travel Costs

The employer must pay the cost of return travel for 457 visa holders if properly requested.

The request must be properly made - in particular it must:

  • Be made by the Department of Immigration, the primary 457 holder (ie the sponsored employee) or by a secondary 457 holder (ie members of the employee's family unit)
  • Specify the persons covered
  • Specify the country of passport they wish to travel to
  • Be made whilst person holds 457

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

  • Travel costs for both primary and secondary visa holders
  • 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

Commences: date of approval of 457, or nomination if already the holder of a 457

Ceases: grant of further visa, grant of nomination for new 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 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.

Commences: date person becomes illegal

Ceases: 5 years from date person leaves Australia

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 of DIAC - when and how transmitted
  • Tasks undertaken by 457 holder + location

Commences: date of approval of sponsorship

Ceases: 2 years after ceasing to be a sponsor and there are no primary or secondary 457 holders

DIAC Notification

The employer must notify the Department of Immigration of certain events via registered post or electronic mail to specified address which depends where the sponsorship application was processed by DIAC.

Notification must be made within 10 business days, and examples of notifiable events 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 visa holder
  • Insolvency/bankruptcy/administration

Commences: date of approval of sponsorship

Ceases: 2 years after ceasing to be a sponsor and there are no primary or secondary 457 holders

Recovery of costs from 457 holder

The employer must not seek to recover certain costs from a 457 holder. Such costs include:
  • Obtaining sponsorship approval
  • Recruitment of the primary sponsored person

However, the above does not seem to include cost of obtaining the 457 visa or nomination.

Commences: date of approval of 457, or nomination if already the holder of a 457

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

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