Australia’s Temporary Skill Shortage (TSS) (subclass 482) visa is a vital instrument for Australian employers to address labour shortages by hiring skilled overseas workers. To ensure the integrity of the program and protect the rights of both employers and employees, the Australian Government has implemented various sponsorship obligations for employers. In this article, we provide an overview of the key sponsorship obligations that employers must fulfill when sponsoring an overseas worker on a TSS (subclass 482) visa.
- Standard Business Sponsorship:
Before an employer can sponsor a foreign worker under the TSS visa program, they must obtain Standard Business Sponsorship (SBS) status. To achieve this, employers must meet several criteria, including demonstrating a commitment to training Australian workers and compliance with Australian workplace laws.
- Labour Market Testing (LMT):
Employers must conduct labour market testing in most cases to demonstrate that there are no suitable Australian workers available to fill the position before sponsoring a foreign worker. LMT typically involves advertising the job vacancy locally, and employers must provide evidence of their efforts.
- Market Salary Rate:
Employers must pay their sponsored foreign workers at least the market salary rate for the occupation. This ensures that foreign workers are not undercutting Australian wages and working conditions. The market salary rate is determined based on various factors, including location, industry, and experience.
- Skilling Australians Fund (SAF) Levy:
Employers are required to pay a Skilling Australians Fund (SAF) levy for each foreign worker they sponsor under the TSS visa program. This levy is used to fund training and skill development initiatives for Australian workers. The amount of the levy varies depending on the size and turnover of the sponsoring business.
- Notification Obligations:
Employers must inform the Australian Department of Home Affairs (DHA) of any significant changes in their business, such as changes in ownership, financial difficulties, or if their sponsored worker ceases employment. Timely notification is crucial to ensure ongoing compliance.
- Maintain Records:
Employers are required to keep detailed records of their employment and sponsorship activities for up to five years. These records must be readily available for inspection by relevant government authorities.
- Cooperation with Inspections and Audits:
Employers must cooperate with any inspections or audits conducted by government authorities, including the Fair Work Ombudsman and the DHA. Non-compliance can lead to sanctions and penalties.
- Provide Adequate Working Conditions:
Employers must ensure that sponsored foreign workers receive the same working conditions as Australian employees, including access to entitlements such as leave, superannuation, and occupational health and safety protections.
Conclusion:
The Temporary Skill Shortage (subclass 482) visa is a valuable tool for Australian employers facing skill shortages. However, to maintain the integrity of the program and protect the rights of both foreign workers and Australian employees, employers must adhere to a range of sponsorship obligations. Compliance with these obligations is essential to avoid penalties, sanctions, and potential loss of sponsorship status. By understanding and fulfilling these obligations, employers can benefit from a skilled workforce while contributing to the Australian labour market and economy.
Disclaimer:
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.