What's New for Employer-Sponsored Workers

Subclass 457 visa program – Integrity reforms – 14 September 2009

From 14 September 2009 major reforms to the Subclass 457 visa program came into effect. These reforms include:

• a new sponsorship obligations regime which provides greater clarity on sponsorship requirements
• a new market salary rates system that ensures Subclass 457 visa holders received the same terms and conditions as Australian workers
• a stronger sanctions regime, including civil penalties for sponsors who are found to have failed to satisfy their sponsorship obligations
• new arrangements for the payment of health costs for Subclass 457 visa holders
• improved information sharing across all levels of government

• expanded powers to monitor and investigate possible non-compliance by sponsors.

The reforms are designed to enhance the integrity of the program and ensure the program continues to provide industry with the necessary skills while not undermining local training and employment opportunities.

Detailed information on the changes and how they affect both sponsors and visa holders can be found on the website.
See:
Subclass 457 - Employer Obligations (sponsors)
Subclass 457 - Employee Obligations (visa holders)
Subclass 457 – Health Insurance

Subclass 457 visa program reforms - 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

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 people who were already Subclass 457 visa holders on 14 September 2009, transitional arrangements will apply.

More information on market salary rates (including transitional arrangements) is available.
See:
Subclass 457 – Market Salary Rates

Subclass 457 - Changes to English Language Proficiency

There are changes to the English language proficiency requirements for Subclass 457 visa holders which came into effect on 14 September 2009.

All primary Subclass 457 visa applicants who are sponsored by a Standard Business Sponsor must demonstrate that they have English language proficiency that is equivalent to an International English Language Testing System (IELTS) test score of at least 5 in each of the four test components of speaking, reading, writing and listening.  Prior to 14 September 2009, applicants required an average test score of at least 5 across the four test components.

Where the nominated occupation requires a higher level of English (equivalent to IELTS test score of more than 5 in each of the four test components) because it forms part of that occupation’s registration, licensing or membership requirement, the visa applicant must have at least the standard of English language proficiency required for the grant of that registration, licence or membership.

This requirement affects all new Subclass 457 visa applications from 14 September 2009, as well as visa applications which were made before but not decided by 14 September 2009.
See:
Changes to the Subclass 457 Visa Program – English Language Requirements
Frequently Asked Questions About English Language Requirements

Subclass 457 visa holders affected by the economic downturn

Australia's temporary skilled migration program aims to fill skill shortages within the Australian economy that cannot be filled from the local labour market. More information is available on the department's website.
See: FAQ – Subclass 457 Visa Holders Affected by the Economic Downturn

Changes to the Subclass 457 Business (Long Stay) visa program

Changes to the Subclass 457 Business (Long Stay) visa program came into effect on 1 July 2009. More information is available on the department's website.
See: Changes to the Subclass 457 Business (Long Stay) Visa Program – Information current at 1 July 2009

Changes to salary levels for the Employer Nomination Scheme (ENS)

Market salary rates do not apply to the Employer Nomination Scheme as they do to the Subclass 457 visa program. Employers must instead ensure the position pays a salary that satisfies the minimum salary specified for the occupation.
See: Gazette notice (866KB PDF file)

Subclass 457 – Business (Long Stay) sponsor attestation

On 1 April 2009, the Minster for Immigration and Citizenship, Senator Chris Evans announced a requirement for sponsors to attest in writing that they have a strong record of, or a demonstrated commitment to:

• employing local labour; and
• non-discriminatory employment practices.

This requirement came into effect on 27 June 2009.
See: Frequently Asked Questions – Attestation

Subclass 457 - External Reference Group

Following concerns raised in a number of industries (particularly in the construction, mining and tourism sectors) the Australian Government announced a package of measures designed to address skills and labour shortages within the Australian economy.
See: Subclass 457 - External Reference Group

Arrangements for the on-hire industry – Subclass 457 visa program

Labour agreement arrangements for the on-hire industry in Australia came into effect from 1 October 2007.
See: Labour agreement arrangements for the on-hire industry