Employer Obligations

There are a number of obligations that employers must be willing and able to meet. These obligations apply to applications lodged on or after 1 July 2004.

The department must be satisfied that the employer is able to meet these sponsorship obligations for both the employee and their accompanying family members.

• Senator Chris Evans addresses sponsors – changes to the Subclass 457-Business (Long Stay) visa (45KB PDF file)
• Subclass 457-Business (Long Stay) visa - Employer sponsorship requirements (377KB PDF file)
• Subclass 457 - Business (Long Stay) visa - Information for standard business sponsors Minimum Salary Levels

Employer	Obligations
Must be responsible for costs	ensure that the cost of return travel for an employee (and accompanying family member/s) is met to return them to their home country pay all medical or hospital expenses for an employee (and accompanying family member/s) for treatment in a public hospital (other than expenses that are met by health insurance or reciprocal health care arrangements) this undertaking continues until all expenses are paid repay the Australian Government for money it spends as a result of the employee's stay in Australia these costs may include those relating to locating and detaining the employee (and accompanying family member) if they become unlawful, removing them from Australia and processing any application that they make for a protection visa this undertaking continues until all costs are paid.
Must comply with immigration laws	comply with responsibilities under Australian immigration laws not employ a person who would be breaking Australian immigration laws by being employed ensure that the employee is paid at least the minimum salary level that applies at the time the decision is made on their visa. See: Nomination Eligibility > Minimum Salary Level
Must cooperate with the department	notify the department within 5 working days after a sponsored employee ceases to work for the sponsoring employer notify the department of: any change in circumstances that may affect the employer's capacity to honour its sponsorship undertakings or any change to the information that contributed to the employer's ability to be approved as a sponsor or the approval of a nomination cooperate with the department's monitoring of the business or of any sponsored employees. This undertaking continues until the earlier of the following: when the employee leaves Australia and their visa ceases, or when the employee is granted another substantive visa when the sponsoring employer ceases to be an approved sponsor of the employee.
Must comply with the terms of the nomination	notify the department of any change in the employee's work location (if the approval of the nomination is granted on the condition that the employee must be working in a particular location).
Must comply with workplace relations laws	comply with all relevant laws relating to workplace relations and any workplace agreements that have been put in place for the employee ensure that the employee holds any licence, registration or membership that is mandatory for the performance of their work make superannuation contributions required for employees while they are employed by the business deduct tax instalments and make payments of tax for the employee while they are employed by the business.

Minimum Salary Levels

Employers must pay at least the Minimum Salary Level (MSL) to primary Subclass 457 visa holders. A higher salary must be paid where required under workplace law or where negotiated between the employer and visa holder.

The formula for calculating the MSL for every sponsored worker to whom the MSL applies is based on a 38-hour week and must be paid on a weekly, fortnightly or monthly basis. In any given week, a sponsored worker cannot be paid for less than 38 hours. For any hours in excess of 38 that are worked, the sponsored worker must be paid at least the equivalent hourly rate for every hour. If a relevant industrial instrument requires a higher salary or overtime rate, then you must pay it.

When determining whether a sponsor is meeting their requirements to pay MSL, the department looks at the amount of salary paid to a person separate from any allowances or bonuses. While some salary-packaged items are allowed, these are limited to items that would be either 100 per cent tax deductible to the sponsored workers, or exempt from Fringe Benefit Tax (FBT).
See: Minimum Salary Levels and Occupations for the Temporary Business Long Stay Visa Notice 2009 (544KB PDF file)
See also: Frequently Asked Questions about changes to Subclass 457 program – ASCO 5-7 Occupations

Note: Businesses should seek their own professional advice on whether an item is 100 per cent tax deductible or otherwise exempt from FBT. Further information is available from the Australian Taxation Office (ATO).
See: Australian Taxation Office

Results of non-compliance

Penalties may be sanctioned if the business does not comply with these obligations.
See: Monitoring of Business Sponsors

Note: These obligations apply to applications lodged on or after 1 July 2004.

 

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