Sponsorship Obligations

Publish Date: Nov 04, 2012

Before your business can employ someone on a sub-class 457 visa, your business must agree to take on a number of obligations. Harsh penalties can be imposed on businesses that do not comply with their obligations. The main obligations and some of the possible penalties for breaching them are listed below. 

If you need help understanding your obligations or want more information about how we can help with compliance issues you should contact Craddock Murray Neumann Lawyers on +61 2 8268 4000.

Sponsorship obligations

Your business must:

  • only employ nominated workers (people on subclass 457 visas) in the occupation that the Department authorises them to work in
  • continue to employ nominated workers on terms and conditions that an Australian performing an equivalent role would enjoy
  • pay the costs incurred by the Commonwealth in locating and/or removing a nominated worker (and any family members) should they are no longer satisfied visa requirements
  • pay reasonable return travel costs for the nominated worker and his or her family members to their home country once their visa expires 
  • co-operate with inspectors appointed under the Migration Act.
  • notify the Department when certain events occur e.g. when a nominated worker ceases to be an employee, the business becomes insolvent etc
  • keep records relating your compliance with these obligations 
  • not seek to recover costs associated with complying with these obligations from a 457 visa holder
  • not seek to recover costs associated with recruiting a 457 visa holder.

The Minister may take one or more of the following actions in the event of non-compliance with these obligations:

  • bar the sponsor, for a specified period, from sponsoring people under an existing approval
  • bar the sponsor, for a specified period, from future applications for approval as a 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 $1,320 for an individual for each failure
  • require and take a security; or enforce a security already taken.
Let us help you. Phone: +61 2 8268 4000 or Book a conference