Skip to content

Visas, Immigration and Refugees

Employer Sponsored Workers

Temporary Business (Long Stay) - Standard Business Sponsorship (Subclass 457)

Employer Obligations


There are nine sponsorship obligations that sponsors of Subclass 457 visa holders (457 sponsors) must comply with. These are set out below.

Employer Obligation Explanation Duration of obligation
Obligation to cooperate with inspectors The standard business sponsor 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 The standard business sponsor must ensure that the terms and conditions of employment provided to a primary sponsored person 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 primary sponsored person 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 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; 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 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.
  • In relation to a primary visa holder, this obligation starts to apply on the day on which the primary sponsored person becomes an unlawful non-citizen; and ceases five years after the primary sponsored person leaves Australia.
  • In relation to a secondary visa holder, this obligation starts to apply on the day on which the secondary sponsored person becomes an unlawful non-citizen; and ceases five years after the secondary sponsored person leaves Australia.
Obligation to keep records The standard business sponsor 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 a sponsor is approved.
  • This obligation ceases two years after the last sponsored person ceases with the sponsor.
Obligation to provide records and information to the Minister

The standard business sponsor 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 a sponsor is approved.
  • This obligation ceases two years after the last sponsored person ceases with the sponsor.
Obligation to provide information to Immigration when certain events occur

The standard business sponsor 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 a sponsor is approved.
  • This obligation ceases when the sponsorship ceases, and where the employer is no longer sponsoring a visa holder.
Obligation to ensure primary sponsored person does not work in an occupation other than an approved occupation

The standard business sponsor must ensure that the primary sponsored person does not work in an occupation other than the occupation that is the subject of the most recent approved nomination for the person. If a sponsor wants to employ a primary sponsored person in a different occupation, the sponsor must lodge a new nomination in respect of that occupation for the primary sponsored person.

The standard business sponsor must also ensure that they do not engage the primary sponsored person'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 primary sponsored person or secondary sponsored person

The standard business sponsor must not recover, or seek to recover, from the primary or secondary sponsored person, all or part of the costs (including migration agent costs):

  • that relate specifically to the recruitment of the primary sponsored person
  • associated with becoming or being a sponsor or former approved sponsor.
  • This obligation ceases on the concurrence of the following two events:
  1. the approved sponsorship ceases; and
  2. there are no sponsored persons in relation to the sponsor.

Further information regarding sponsorship obligations is available.
See:
Subclass 457 – Sponsorship Obligations Frequently Asked Questions – Sponsors
Subclass 457 – Sponsorship Obligations Frequently Asked Questions – Visa Holders
Fact Sheet – Subclass 457 Sponsor Obligations (267KB PDF file)

Impact on overseas based standard business sponsors

The reforms that came into effect on 14 September 2009 under the Migration Legislation Amendment (Worker Protection) Act 2008 and associated regulations also impact upon overseas based standard business sponsors.
See: Impact of Worker Protection Regulations commencing on 14 September 2009 on overseas based standard business sponsors

Monitoring

Employers who are approved as a sponsor will be monitored to ensure they are complying with their sponsorship obligations.
See: Monitoring of Business Sponsors

Sanctions

There is action the department can take if a Subclass 457 sponsor fails to satisfy a sponsorship obligation.
See: Sanctions

Subclass 457 – market salary rates

From 14 September 2009, all sponsors of Subclass 457 visa holders (457 sponsors) will be required to adhere to a new series of sponsorship obligations. For 457 sponsors, the obligation to ensure equivalent terms and conditions of employment will mean that they pay market salary rates to their overseas workers.

For current Subclass 457 visa holders, transitional arrangements will apply.

See: Subclass 457 – Market Salary Rates

 

Before lodging an application, please read all related obligation requirements.
See: Other Obligations