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Sponsorship Obligations

Sponsors of subclass 457/482 visa holders must comply with a number of obligations to ensure that the visa holders are treated fairly and the visa program is not misused. These obligations apply not only during the sponsorship period but in some cases beyond it. Below is a detailed breakdown of these obligations:

Key Obligations

Cooperate with Inspectors

  • Allow access to premises and provide requested records.
  • Ensure compliance with visa conditions and workplace laws.

Ensure Equivalent Terms and Conditions of Employment

Sponsors must provide the visa holder with the same or better terms and conditions of employment as Australian workers performing the same role in the same location. This includes salary and employment conditions, ensuring no exploitation or underpayment.

Keep Records

  • Keep thorough and accurate records of compliance with sponsorship obligations.
  • Include employment contracts, payment details, and training records.

Provide Records and Information to the Minister

Upon request, sponsors must provide records or information about their compliance with their sponsorship obligations or about the visa holder.

Notify the Department of Key Events

  • Inform the department when the visa holder’s employment ends.
  • Notify if the business ceases trading or changes structure.

Ensure Participation in the Nominated Occupation

The sponsored visa holder must work in the occupation or position they were nominated for. They cannot be transferred to another role without approval.

Not Recover or Charge Certain Costs

Sponsors are prohibited from passing on or recovering certain costs from the visa holder, such as migration agent fees and sponsorship application costs.

Pay Travel Costs

If requested, sponsors must pay travel costs for the visa holder and family to leave Australia, typically back to their home country.

Pay Costs for Removal of Unlawful Non-Citizens

If the visa holder becomes an unlawful non-citizen, sponsors may be required to cover the costs of locating, detaining, and removing them.

Provide Training to Australians and Permanent Residents

Demonstrate a commitment to workforce development through direct training initiatives or contributions to the Skilling Australians Fund (SAF).

Not Engage in Discriminatory Practices

Sponsors must not discriminate against employees or applicants based on race, ethnicity, or other protected characteristics.

Key Requirements for Cooperation

Key Obligations

  • Provide Access to Premises: Allow inspectors access to your workplace or business premises as part of their investigation.
  • Produce and Provide Documents: Provide documents requested by inspectors, such as contracts, payroll records, or other relevant documentation.
  • Facilitate Access to Records and People: Ensure that inspectors can access people and records needed for the investigation.
  • Allow Interviews: Permit inspectors to interview individuals on the premises, such as employees or management.

Timeframe of the Obligation

  • Start Date: The obligation begins when your sponsorship is approved or the work agreement commences.
  • End Date: It continues for five years after the sponsorship ends or the work agreement ceases.

By cooperating fully with inspectors, you ensure compliance with the Migration Act and avoid potential legal or administrative penalties.

Ensure Equivalent Terms and Conditions of Employment

You must provide the sponsored worker with terms and conditions of employment that are no less favorable than those offered to an equivalent Australian worker in the same location.

The terms and conditions must also be no less favorable than what was declared at the time of nomination. This requirement does not apply if the sponsored worker earns AUD 250,000 or more annually.

For sponsors operating under a work agreement, you must ensure the sponsored worker is paid according to the amount specified in the agreement.

Duration of this obligation:

  • Begins when the sponsored person is granted the visa or when your nomination is approved.
  • Ends when the person stops working for you or is granted a different visa, other than a Subclass 457 visa.

Record Keeping Requirements

Sponsors are required to keep detailed records, including but not limited to:

  • Written requests for payment of outward travel costs and details of how, when, and to whom such costs were paid.
  • Notifications of reportable events (e.g., termination of employment).
  • Tasks performed by the sponsored worker and location.
  • Payment details to the sponsored worker (unless they earn AUD 250,000+ annually).
  • Non-monetary benefits provided (unless the worker earns AUD 250,000+ annually).
  • Written employment contracts.
  • Compliance with training obligations (for sponsors operating a business in Australia).
  • Records required under any work agreement.

Duration of this obligation:

  • Begins when your sponsorship is approved or the work agreement starts.
  • Ends two years after your sponsorship or work agreement ceases, and you no longer sponsor anyone.

Provide Records and Information to the Minister

You must provide any requested records or information to a departmental officer when they seek to:

  • Determine whether a sponsorship obligation has been or is being met.
  • Assess any other administrative action or circumstance related to sponsorship.

Duration of this obligation:

  • Starts when the sponsorship is approved or the work agreement starts.
  • Ends two years after the sponsorship or work agreement ceases, and there are no more sponsored visa holders.

This notice outlines your obligations to inform us in writing about certain events that occur in relation to your sponsorship or business. You must send this information by registered post or electronic mail to the specified address within the relevant timeframes.

Obligation Start Date:

  • This obligation begins on the day your standard business sponsorship is approved or your work agreement commences.

Obligation End Date:

  • The obligation ends two years after:
    • Your sponsorship or work agreement ends.
    • You are no longer sponsoring anyone.

Compliance with the Migration Act 1958

Under the Migration Act 1958, sponsors are required to cooperate fully with inspectors during investigations related to compliance with sponsorship obligations. This includes:

  • Providing access to premises and records.
  • Facilitating interviews with relevant individuals.

Events You Must Notify Within 28 Calendar Days

Change in Sponsored Visa Holder’s Employment or Duties

  • Employment ends or is expected to end (notify if the end date changes).
  • Changes to the duties of the sponsored visa holder.

Changes to Sponsorship Information (Standard Business Sponsors)

  • Changes to your sponsorship application details, including the training requirement, or your business’s address and contact details.

Changes to Work Agreement Details (Work Agreement Sponsors)

  • Changes to address, contact details, or training information provided in the work agreement.

Return Travel Costs

You have paid the return travel costs for a sponsored visa holder or their family members, in line with your obligation to cover these costs.

Insolvency

You have become insolvent according to sections of the Bankruptcy Act 1966 and Corporations Act 2001.

Business Ceases to Exist

Your business is no longer a legal entity.

For Companies

You must also notify within 28 calendar days if:

  • A new director is appointed.
  • An administrator is appointed under Part 5.3A of the Corporations Act 2001.
  • The company resolves to be wound up voluntarily under subsection 491(1) of the Corporations Act 2001.
  • A court orders the company to be wound up in insolvency under Part 5.4 or on other grounds under Part 5.4A of the Corporations Act 2001.
  • A court appoints a provisional liquidator under Part 5.4B of the Corporations Act 2001.
  • A court approves a compromise or arrangement proposed by the company under Part 5.1 of the Corporations Act 2001.
  • The company’s property becomes subject to a receiver or controller under Part 5.2 of the Corporations Act 2001.
  • Deregistration procedures are initiated under Part 5A.1 of the Corporations Act 2001.

For Individuals

If you operate as an individual, you must notify us within 28 calendar days if:

  • You enter into a personal insolvency agreement under Part X of the Bankruptcy Act 1966.
  • You enter into a debt agreement under Part IX of the Bankruptcy Act 1966.
  • A sequestration order is made against your estate under Part IV of the Bankruptcy Act 1966.
  • You become bankrupt by presenting a debtor’s petition under Part IV of the Bankruptcy Act 1966.
  • You present a declaration of intention to present a debtor’s petition under Part IV of the Bankruptcy Act 1966.
  • A composition or scheme of arrangement is presented in relation to you under Division 6 of Part IV of the Bankruptcy Act 1966.

For Partnerships

You must notify us within 28 calendar days if:

  • A new partner joins the partnership.
  • Any of the individual or company-related events mentioned above occur.

For Unincorporated Associations

Notify us within 28 calendar days if:

  • A new managing committee member is appointed.
  • Any of the individual or company-related events mentioned above occur.

By adhering to these obligations, you ensure compliance with your sponsorship and business responsibilities.

Participation in Nominated Occupation/Program

Sponsors must ensure the visa holder only participates in the occupation or activity for which they were nominated. If a different role is needed, a new nomination application is required.

  • The obligation begins either when the visa is granted or the nomination is approved (if the person already holds a visa).
  • It ends when the visa holder gets a nomination approved with another sponsor, leaves Australia, or is granted another substantive visa.

Costs Not to Be Recovered or Charged to the Visa Holder

Employers must not charge sponsored workers for costs related to their sponsorship, such as migration agent fees, recruitment fees, job advertising, and administrative costs.

  • This obligation starts from sponsorship approval and ends when the employer no longer sponsors the visa holder or holds a visa.

Pay Travel Costs for the Sponsored Worker’s Departure

Employers must cover reasonable travel costs for the sponsored worker and their family to leave Australia if requested in writing. Costs must be paid within 30 days, covering travel from the worker’s residence to their destination country.

Costs of Locating and Removing Unlawful Non-citizens

If the sponsored worker or their family members become unlawful non-citizens, the employer may be liable to pay the Australian government for locating or removing them, up to AUD 10,000. This liability lasts for up to five years after the person leaves Australia.

Provide Training for Australians and Permanent Residents

Standard business sponsors must contribute to training Australians by either:

  • Spending at least 2% of their payroll on industry training funds, or
  • Spending at least 1% on training employees who are Australian citizens or permanent residents.

This obligation continues while the employer sponsors a visa holder and for three or six years (depending on sponsor status).

Non-discriminatory Recruitment Practices

Sponsors must not engage in recruitment practices that discriminate against Australian citizens or residents based on visa or citizenship status.

These obligations are designed to ensure that employers properly manage the sponsorship of visa holders while promoting fairness, training opportunities, and lawful employment practices in Australia.