457 Work Condition 8107
Condition 8107, which is the work restriction applying to 457 visas, has been completely rewritten effective 14 September 2009. The changes have been made to facilitate 457 visa holders changing employers without needing to apply for a new 457 visa.
The work restriction comes into effect once a nomination by an employer is approved. Once this happens, the 457 holder can only work for the nominating employer in the occupation which is specified in the nomination.
There are only a few exceptions to this rule:
- If the employee is employed as a general manager or medical practitioner; or
- The employee needs to serve out a notice period with the previous employer; or
- The employer is an "associated entity" of the sponsor - this would include subsidiaries, parents and sibling companies
The new condition 8107 also makes it clear that if the person ceases employment, this can only be for a maximum of 28 days before the 457 holder is considered to be in breach of their visa conditions and subject to visa cancellation.
Changing Employers on a 457 - Example
As an example - if John is employed by Company A on a 457, and obtains a new job with Company B, the process would work as follows:
- Company B would apply for a nomination for John
- Once the nomination is approved, John could work for Company B. John would not need to apply for a new 457
- If John then gives notice to Company A, he can serve his notice period with Company A before working with Company B
- Note, however, that if John gives notice too early and the nomination takes some time to come though, he may be in breach of the 28 day limitation on being out of work
The above process avoids the necessity of applying for a new 457, thus avoiding paying the lodgement fee for the visa and the 457 holder redoing medicals. However, if the employee was granted their 457 visa prior to the 14th of September, the new employer would then be liable for medical expenses. This would be avoided if a new 457 visa was applied for.
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