The Department of Immigration and Border Protection (DIBP) has the right to monitor companies sponsoring workers on Temporary Work (Skilled) (subclass 457) visas, (which are known as standard business sponsors) at any stage during the sponsorship period. However, sponsorship monitoring need not be stressful, provided the standard business sponsor ensures that the sponsorship obligations continue to be met by the company.
It is crucial that as a subclass 457 sponsor, companies ensure the following:
- That all subclass 457 visa holders actually work in their nominated occupation;
- That the company pays subclass 457 visa holders the salary stipulated in their nomination application form at regular intervals (weekly, fortnightly or monthly); and
- That records are kept by the standard business sponsor that can be produced upon request by the DIBP of the following:
a. any money paid to the subclass 457 visa holder, such as payslips and salary information;
b. any leave taken by the subclass 457 visa holder;
c. copy of the employment contract of the subclass 457 visa holder; and
d. notices of salary increases of the subclass 457 visa holder.
It is reminded that the nominated occupation and salary of subclass 457 visa holders is contained in the nomination approval notices sent from the DIBP. We are happy to assist should your company wish to check the nominated occupations and salaries or your subclass 457 visa holders.
Change in circumstances
As a standard business sponsor, it is necessary to inform the DIBP of any change in circumstances of the company. Examples of a change in circumstances include the following:
- If the subclass 457 visa holder ceases or is expected to cease employment with the company (if they are terminated or resign), then the standard business sponsor must inform the DIBP of this event;
- The DIBP must be notified of a change to the address or contact details of the business; and
- If there is a change to the duties carried out by the subclass 457 visa holder, then the DIBP must be notified of this change.
It is necessary for standard business sponsors to notify the DIBP of a change in circumstances within 10 days following the event. We can certainly assist in advising the relevant section of the DIBP of a change in circumstances for a standard business sponsor. If your company is unsure whether it is under an obligation to inform the DIBP of a change to the role of your subclass 457 visa holder or your company, it is always preferable to err on the side of caution. We are happy to provide advice to our clients on what constitutes a change in circumstances.
It is reminded that part of the obligations as a standard business sponsor is to maintain training of Australian staff throughout the sponsorship term.
Training obligations consist of the following options:
- If the standard business sponsor applied under Training Benchmark A, the company must spend an equivalent of at least two per cent of payroll in payments to an industry training fund that operates in the same industry; or
- If the standard business sponsor applied under Training Benchmark B, the company must spend an equivalent to at least one per cent of payroll in the provision of training to employees of the business who are Australian citizens or Australian permanent residents.
The company must meet the training obligation in each 12 month period within which it employs a sponsored visa holder (including if the sponsored visa holder is not employed by the company for the full twelve months).
Please let us know if you have any questions regarding the training obligations and how your company can continue to meet this requirement throughout the term of the sponsorship.
Complete sponsorship obligations
We have attached a complete copy of the standard business sponsor sponsorship obligations published on the DIBP website. Please let us know if you have any questions regarding your company’s sponsorship obligations.
It is important to understand your sponsorship obligations and to maintain the correct records to remove any stress should the DIBP monitor your company in the future.
The information on this website is intended only to provide a summary and general overview on relevant matters. It is not intended to be comprehensive nor does it constitute legal advice. You are advised to seek legal or other professional advice before acting or relying on any of the content contained in this website.