Understanding Standard Business Sponsor Obligations
Businesses approved as Standard Business Sponsors (SBS) have certain legal obligations when sponsoring skilled workers under the Skills in Demand (SID) visa (subclass 482), Skilled Employer Sponsored Regional (Provisional) visa (subclass 494); and previously, the TSS and subclass 457 visas. These obligations ensure compliance with Australian immigration laws and maintain fair employment conditions. Below is a detailed overview of key obligations, compliance monitoring, and potential sanctions for breaches.
Key Sponsorship Obligations
1. Cooperate with Inspectors
Sponsors must cooperate with inspectors appointed under the Migration Act 1958, who have authority to:
Enter business premises
Inspect work arrangements
Interview employees
Request documentation
Duration: Obligation starts upon sponsorship approval and lasts five years after the sponsorship ceases.
2. Ensure Equivalent Terms and Conditions of Employment
Sponsors must provide employment terms and conditions that are:
No less favorable than those provided to Australian citizens or permanent residents in equivalent roles.
Consistent with those submitted in the nomination application.
Exemption: This does not apply to employees earning above $250,000 per year.
Duration: Obligation begins when the nomination is approved (or visa granted) and ceases when the employee leaves employment or transitions to another visa.
3. Pay Travel Costs for Departing Sponsored Employees
If requested in writing by the immigration department or the employee, sponsors must cover reasonable travel costs for the employee and dependents to leave Australia. This includes:
Travel from the employee’s Australian residence to the departure point
Flight to their home country
Payment within 30 days of request
Duration: Obligation lasts until the employee secures another nomination, transitions to another visa, or leaves Australia permanently.
4. Cover Costs of Locating and Removing Unlawful Non-Citizens
Sponsors may be required to reimburse the Commonwealth for costs associated with locating and removing sponsored employees who become unlawful non-citizens.
Duration: Applies from when the employee becomes unlawful and lasts up to five years after they leave Australia.
5. Maintain and Provide Records
Sponsors must keep records of compliance, including:
Employee contracts
Work performed by sponsored employees
Business turnover (if paying the Skilling Australians Fund levy)
Compliance with training benchmarks (for sponsors before August 12, 2018)
Duration: Records must be kept for five years after sponsorship ceases.
6. Report Changes to Immigration Authorities
Sponsors must notify immigration authorities within 28 days if:
A sponsored employee ceases employment
Work duties change
Business ownership, structure, or address changes
Business becomes insolvent
Duration: Applies until sponsorship ceases.
7. Ensure Sponsored Employees Work in Nominated Occupations
Employees must only work in the occupation approved in their nomination. Employers must not engage in labor hire activities unless an exemption applies.
Duration: Applies until the employee secures another nomination, transitions to another visa, or leaves Australia permanently.
8. Prohibit Recovery of Sponsorship Costs from Employees
Sponsors cannot transfer or seek reimbursement of costs related to:
Becoming a sponsor
Visa nomination fees (including Skilling Australians Fund levy)
Recruitment expenses
Duration: Obligation continues until sponsorship ceases.
9. Avoid Discriminatory Recruitment Practices
Sponsors must ensure recruitment practices do not discriminate based on citizenship or visa status. The visa program should only be used to fill genuine skill shortages.
Duration: Applies throughout the sponsorship period.
Compliance Monitoring & Enforcement
The Department of Home Affairs actively monitors compliance through:
Written information requests
On-site inspections (announced or unannounced)
Information sharing with agencies like the Fair Work Ombudsman and the Australian Taxation Office
Sanctions for Non-Compliance
If a sponsor fails to meet obligations, the Department may impose:
Enforceable undertakings (requiring corrective action)
Public disclosure of non-compliance
Suspension from future sponsorship
Refusal of sponsorship renewal
Cancellation of sponsorship approvals
Fines up to AUD 12,600 (individuals) or AUD 63,000 (corporations) per violation
Sanctions apply if sponsors:
Fail to meet obligations
Provide false or misleading information
Lose eligibility as an approved sponsor
Violate other Commonwealth, state, or territory laws
Conclusion
Understanding and adhering to sponsorship obligations is essential for maintaining compliance and avoiding severe penalties. Employers should proactively ensure they meet all requirements and seek professional guidance if they encounter compliance issues.
For assistance with sponsorship obligations, compliance audits, or responding to enforcement actions, contact our office today.
Article written by Ruppert Legal Principal, Ndi Ruppert.
If you have found the publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances, please contact us at info@ruppertlegal.com.au or make an appointment at a time convenient to you via the Ruppert Legal Booking Page.
Please note that this publication is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances.
