Australia - 457 Sponsorship Obligations

The sponsoring company has obligations, which it agrees to meet. These obligations start when the sponsored employee (and family) arrive in Australia.
The obligations include;
  • To pay the required minimum salary to the employee
  • To deduct tax and pay superannuation for the employee
  • To meet the return travel for the employee (and any accompanying family members)
  • To meet medical costs for treatment in a public hospital other than costs that are met by health insurance or reciprocal arrangements
  • To repay the Australian Government for any costs incurred as a result of the employee's stay in Australia eg locating and detaining the employee if they become unlawful.
  • To ensure that the employee holds any licence, registration or membership that is mandatory for their work
  • Not to employ anyone in breach of immigration laws
  • To be compliant with any relevant immigration and workplace legislation
  • Within 5 working days of a sponsored employee leaving the company you must notify DIAC
To notify DIAC of:
        1. any change in circumstances that may affect the company’s ability to honour its sponsorship undertakings; or
          any change in the information provided to DIAC for the sponsorship and nomination
        2. Cooperate with DIAC’s monitoring of the business or of any sponsored employees.
These undertakings last until;
  • - the employee leaves Australia and their visa ceases, or
  • - when the employee is granted another substantive visa, or
  • - 28 days after the sponsor has given DIAC notice of the sponsored employee ceasing to be employed.
Approved sponsoring companies will be monitored to ensure that they are honouring their sponsorship obligations. Penalties may be sanctioned if the business does not comply with these obligations.

Sanctions include;
  • Cancellation of the business sponsorship agreement;
  • Cancellation of the visas of any employees and their accompanying family members;
  • Preventing the employer from sponsoring or nominating any employees under the 457 visa for a period of time;
From August 2007 it will be a criminal offence under the Migration Act 1958 for a person to knowingly or recklessly:
  • allow an illegal worker to work; or
  • refer an illegal worker for work with another business.
Individuals who are convicted of these offences face fines of up to $13 200 and/or two years imprisonment while companies face fines of up to $66 000 per illegal worker.