Sponsors Obligations

All sponsors of subclass 457 visa holders have sponsorship obligations. You need to fully understand your obligations as a sponsor. Some obligations apply beyond the term of your approval as a sponsor.

These obligations help ensure that overseas skilled workers are protected from exploitation. Sponsorship obligations also ensure that the program is being used to meet genuine skills shortages, and is not being used to undercut local labour wages and conditions.

Monitoring of sponsors

The department will monitor your compliance with the sponsorship obligations. The department will also monitor the subclass 457 visa holders you have sponsored, to ensure they are abiding by their visa conditions.

Approved sponsors are routinely monitored. The department also responds to information, such as allegations or media reports. This can take place during the approved sponsorship period and for up to five years after the sponsorship approval ceases.

The department monitors sponsors in three main ways:

• by exchanging information with other Australian, state and territory government agencies
• through written requests to the sponsor to provide information in accordance with the sponsorship obligations
• by visiting businesses with or without notice.

Sanctions for not meeting your obligations

If you fail to meet your obligations, the department may impose the following sanctions:

• you could be barred from sponsoring more people until a specified date
• could be barred for a specified period from applying to be a sponsor until a specified date
• one or more of your existing approvals as a sponsor could be cancelled
• you be ordered by a court to pay a fine for each failure of up to AUD33 000 if you are a body corporate and AUD6600 if you are an individual
• you could be issued an infringement notice for each failure of up to AUD6600 if you are a body corporate and AUD1320 if you are an individual.

In addition, you could also have sanctions imposed if:

• you provided false or misleading information to the department or the Migration Review Tribunal
• you no longer satisfy the criteria for approval as a standard business sponsor or for variation of that approval
• you have been found by a court or competent authority to have contravened a Commonwealth, state or territory law
• the person you sponsored is found to have contravened a law relating to the licensing, registration or membership required in order to work in the nominated occupation.

The type of actions that may be taken varies depending on whether the sponsor is a standard business sponsor or a party to a labour agreement.

If you have sponsored someone under a labour agreement, the department may suspend or terminate the labour agreement in accordance with the clauses of the particular labour agreement.

Your obligations

Below is a brief explanation of the sponsorship obligations, however applicants for approval as a standard business sponsor should read Booklet 9 Temporary Business (Long Stay) (Subclass 457 visa) (586KB PDF file) for information regarding the sponsorship obligations.

Employer obligation	Explanation	Duration of obligation
Obligation to cooperate with inspectors	You must cooperate with inspectors appointed under the Migration Act 1958.	This obligation commences from the time a sponsor is approved. This obligation ceases five years after the sponsorship ceases.
Obligation to ensure equivalent terms and conditions of employment	You must ensure that the terms and conditions of employment provided to a skilled worker are no less favourable than the terms and conditions the person provides, or would provide, to an Australian citizen or Australian permanent resident to perform work in an equivalent position in the person's workplace at the same location.	If the nominated person holds a visa, this obligation commences from the time the nomination is approved. If the nominated person does not hold a visa, this obligation commences from the time the visa granted. This obligation ceases when the skilled worker ceases employment, or is granted a further substantive visa.
Obligation to pay travel costs to enable sponsored persons to leave Australia	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 sponsored persons, or the department 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 skilled worker'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; and are paid within 30 days of receiving the request; and are for economy class air travel or, where unavailable, a reasonable equivalent.	If the nominated person holds a visa, this obligation commences from the time the nomination is approved. If the nominated person does not hold a visa, this obligation commences from the time the visa granted. This obligation ceases when another nomination is approved, a further substantive visa is granted or when the visa holder has left Australia and no longer holds the Subclass 457 visa.
Obligation to pay costs incurred by the Commonwealth to locate and remove unlawful non-citizen	You must pay costs incurred by the Commonwealth in locating and removing the skilled worker or their family members from Australia, if the Minister has requested the payment by written notice. You are liable to pay the Commonwealth the difference between the actual costs incurred by the Commonwealth (up to a maximum of AUD10 000) less any amount already paid under the obligation to pay their travel costs to leave Australia.	In relation to a skilled worker, this obligation starts to apply on the day on which the skilled worker becomes an unlawful non-citizen; and ceases five years after the skilled worker leaves Australia. In relation to the skilled worker's family members, this obligation starts to apply on the day on which they become an unlawful non-citizen; and ceases five years after they leaves Australia.
Obligation to keep records	You must keep records of its compliance with the other obligations. All of the records must be reproducible and some must be capable of verification by an independent person. See Obligation to Keep Records.	This obligation commences from the time you become an approved sponsor. This obligation ceases two years after the last sponsored person ceases with the sponsor.
Obligation to provide records and information to the Minister	You must provide records or 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 on request and in the manner and timeframe requested by the Minister.	This obligation commences from the time you become an approved sponsor. This obligation ceases two years after the last sponsored person ceases with the sponsor.
Obligation to provide information to Immigration when certain events occur	You must provide certain information to the department when certain events occur. This information must be provided by registered post or electronic mail, to a specified address and within certain timeframes of the event occurring. See Obligation to Provide Information to Immigration when Certain Events Occur.	This obligation commences from the time you become an approved sponsor. This obligation ceases when the sponsorship ceases, and where the employer is no longer sponsoring a visa holder.
Obligation to ensure skilled worker does not work in an occupation other than an approved occupation	You must ensure that the skilled worker does not work in an occupation other than the occupation that is the subject of the most recent approved nomination for the person. If you want to employ a skilled worker in a different occupation, you must lodge a new nomination in respect of that occupation for the skilled worker. You must also ensure that you do not engage the skilled worker's services other than as an employee.	If the nominated person holds a visa, this obligation commences from the time the nomination is approved. If the nominated person does not hold a visa, this obligation commences from the time the visa granted. This obligation ceases when another nomination is approved, a further substantive visa is granted or when the visa holder has left Australia and no longer holds the Subclass 457 visa.
Obligation not to recover certain costs from a skilled worker or secondary sponsored person	You must not recover, or seek to recover, from the skilled worker or any of their family members, all or part of the costs (including migration agent costs): that relate specifically to the recruitment of the skilled worker associated with becoming or being a sponsor or former approved sponsor.	This obligation ceases when: the approved sponsorship ceases there are no sponsored persons in relation to the sponsor.