Subclass 457 – Sponsorship Obligations Frequently Asked Questions – Sponsors

What is Standard Business Sponsorship (SBS)?

A Standard Business Sponsorship (SBS) is a sponsorship for the Subclass 457 – Business (Long Stay) visa. It is the most commonly used program for employers to sponsor overseas workers to work in Australia on a temporary basis.

Who do the new sponsorship obligations affect?

Approved sponsors and in some cases former approved sponsors of Subclass 457 visa holders.

When do the new sponsorship obligations come into effect?

The sponsorship obligations under the Migration Legislation Amendment (Worker Protection) Act 2008 (and associated regulations) come into effect on 14 September 2009.

How do the new sponsorship obligations apply to new and existing visa holders?

The new sponsorship obligations will apply to all new and existing Subclass 457 visa holders after 14 September 2009.

The obligation on the sponsor to ensure equivalent terms and conditions differs according to whether the nomination associated with the visa holder concerned, was approved before, or after 14 September 2009.
See:
Subclass 457 – Market Salary Rates
Subclass 457 – Market Rates Frequently Asked Questions – Sponsors
Subclass 457 – Market Rates Frequently Asked Questions – Visa Holders

I have a current nomination application in progress with the department. How do the changes affect me?

Your application will be assessed against the new nomination criteria. The department will write to you seeking further information as required.

I have an approved nomination. How do the changes affect me?

For Subclass 457 nominations that were approved before 14 September 2009 that specified a nominated person, these nominations can be linked to a Subclass 457 visa application within the validity period of the nomination and the visa application will be processed under the new visa regulations.

Subclass 457 nominations that were approved before 14 September 2009 that did not specify a nominated person will not be able to be processed under the new arrangements. These nominations cannot be linked to a Subclass 457 visa application.

However you may seek a refund of the nomination fee by putting your request in writing to the department within the validity period of the nomination.

How are the new sponsorship obligations different from previous sponsorship undertakings?

Under the previous sponsorship undertakings, the sponsor had to expressly make the undertakings to be bound by them. Under the new provisions, a sponsor will be automatically required to satisfy sponsorship obligations if they are a sponsor to whom the obligations apply.

The new sponsorship obligations also impose new obligations upon sponsors that did not exist under the previous sponsorship undertakings. This includes the introduction of the obligation to ensure equivalent terms and conditions of employment provided to subclass 457 visa holders and an Australian citizen or permanent resident performing work in an equivalent position at the same location.
See:
Subclass 457 – Market Salary Rates
Subclass 457 – Market Rates Frequently Asked Questions – Sponsors
Subclass 457 – Market Rates Frequently Asked Questions – Visa Holders

Can the primary sponsored person change jobs?

Yes. As their sponsor you must ensure that the subclass 457 visa holder does not work in an occupation other than the occupation that is identified in the most recent approved nomination for that person.

If you want to sponsor your subclass 457 visa holder in a different occupation, you must lodge a new nomination in respect of that occupation. Once the new nomination has been approved by the department of Immigration and Citizenship, they will be able to start working in the nominated occupation.

If a subclass 457 visa holder wishes to change sponsors, the new proposed sponsor must lodge a new nomination for the subclass 457 visa holder. Once the new nomination has been approved by the department and subject to any requirement to give notice to the current sponsor, the visa holder may commence working for the new sponsor.

The subclass 457 visa holder will not need to apply for a new visa unless their visa is about to expire.

When can inspectors enter my workplace?

Inspectors appointed under the Migration Act 1958 can undertake a desk audit or visit in person – announced or unannounced – in your workplace. Inspectors can perform a number of checks, such as examining financial and payroll records and interviewing sponsors, company directors and staff, including sponsored workers.

The standard business sponsor must cooperate with inspectors, which can mean providing access to premises, producing and providing documents, completing forms in the time requested, providing officers with access to interview any person and complying with any request by officers in relation to the inspection they are conducting.

What additional records do I need to keep?

The standard business sponsor must keep and provide records (to be provided on request and in the manner and timeframe requested) of 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.

Am I liable for any cost if the visa holder goes missing or will not voluntarily leave the country?

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.

Am I obligated to pay any costs if I cease sponsorship?

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
• are paid within 30 days of receiving the request
• are for economy class air travel or, where unavailable, a reasonable equivalent.

Standard business sponsors must not recover, or seek to recover from their sponsored Subclass 457 visa holders all or part of the costs (including migration agent costs):

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

Do I have to reapply to be a Standard Business Sponsor?

You do not have to reapply to be a standard business sponsor if you have already been approved as a standard business sponsor before the changes come into effect.

Once your approval ceases (as per the terms of your existing approval) you will need to reapply to be a standard business sponsor if you want to sponsor additional subclass 457 visa holders.