When a nomination is approved and a visa is granted, employers may assume that their immigration obligations have been satisfied. In practice, approval is only the starting point. Sponsored employment arrangements must remain compliant throughout the visa period, and in some circumstances, obligations continue after sponsorship or employment ends.
Employers sponsoring overseas workers must continue to meet their sponsorship obligations, maintain accurate records, notify the Department of Home Affairs of specified changes within the required timeframes, and cooperate with compliance monitoring. Visa holders must also comply with the conditions attached to their visas.
Ordinary business decisions, such as changing an employee’s duties, reducing salary or hours, or transferring a worker to another entity, can have immigration consequences. Employers should therefore manage sponsorship compliance as an ongoing business responsibility, not a one-off application process.
Why is Sponsorship Approval Only the Beginning?
When the Department of Home Affairs approves a nomination and grants a visa, it assesses the circumstances against the requirements at that point in time. This may include whether the position is genuine, whether the worker has the required skills and qualifications, and whether the employer satisfies the sponsorship criteria.
Approval does not guarantee that the arrangement will remain compliant if circumstances change later. Ongoing compliance matters for three key reasons:
- Sponsorship obligations continue after approval
- Visa conditions regulate sponsored employment
- Compliance monitoring can occur after approval
Ongoing Obligations for Employers
The specific obligations depend on the visa subclass, sponsorship arrangement, and applicable regulatory requirements. For employers sponsoring workers under the Skills in Demand visa (Subclass 482) program, key obligations commonly include the following.
- Equivalent terms and conditions:Sponsored workers must receive employment terms and conditions that are no less favourable than those provided to an Australian worker performing equivalent work at the same location, where the requirements apply.
- Nominated occupation and salary:Employers must ensure sponsored workers remain employed consistently with the approved nomination and receive the required salary.
- Notification requirements:Sponsors must notify the Department of Home Affairs in writing of specified changes, generally within 28 days.
- Cost recovery restrictions:Sponsors must not recover sponsorship, nomination, recruitment or Skilling Australians Fund levy costs from a sponsored worker, directly or indirectly.
- Records and cooperation:Sponsors must maintain records, provide information when require and cooperate with compliance monitoring.
- Departure costs:In certain circumstances, sponsors may be required to pay reasonable and necessary costs associated with a sponsored worker’s departure from Australia.
How These Obligations Apply in Practice
Compliance issues often arise from ordinary workplace decisions. Before implementing changes, employers should consider whether the proposed arrangement remains consistent with the approved nomination, the worker’s visa conditions and the sponsor’s notification obligations.
- Changes to duties: Review proposed duties and position descriptions before implementing changes. If the new role differs from the approved nomination, obtain immigration advice.
- Salary or hours changes: Assess the effect on salary requirements, employment conditions and notification obligations before reducing remuneration or hours.
- Employment ending: Notify the Department if a sponsored worker resigns, is made redundant or otherwise ceases employment.
- Business changes: Obtain advice before completing a transaction or restructure that may affect sponsorship approval, nominations or reporting obligations.
- Transfers and secondments: Do not assume common ownership or a commercial relationship between entities permits a sponsored worker to work for another entity.
- Migration and recruitment costs: Ensure prohibited costs are not passed on to sponsored workers and keep records of how those costs were allocated.
- Visa expiry and work rights: Maintain visa reminders and verify work rights through VEVO at appropriate intervals.
- Compliance audits: Keep employment contracts, payroll records, position descriptions, notifications and relevant correspondence accessible and up to date.
What Happens if an Employer Fails to Comply?
Non-compliance can lead to warnings, directions to rectify issues, civil penalties, restrictions on future sponsorship, and cancellation of sponsorship approval. The consequences can also extend beyond immigration matters and create employment, financial and reputational risks for the business.
If a potential breach is identified, employers should keep relevant records and obtain appropriate advice before taking any further action.
How Employers Can Manage Ongoing Visa Compliance
Effective compliance management does not need to be complex. It does, however, require clear responsibility, reliable records, and a process for assessing workplace changes before they occur.
Employers sponsoring overseas workers should consider the following measures:
- Record each worker’s visa expiry date, nominated occupation, duties, salary, and relevant notification deadlines.
- Maintain an accessible file for each sponsored worker, including contracts, payroll records, position descriptions, visa, and correspondence.
- Review proposed changes to duties, salary, working hours, work location, employing entity or business structure before implementation.
- Monitor work rights and visa conditions through VEVO and maintain reminders for review dates.
- At least annually, compare the worker’s actual duties, remuneration and employment arrangements against the approved nomination and applicable requirements.
- Seek immigration advice before implementing any change that may affect sponsorship or visa compliance.
Treating immigration compliance as part of day-to-day business operations helps manage risk and maintain ongoing sponsorship obligations.
At Rehman Sheriff Group, we assist employers with Australian employer-sponsored visas, sponsorship obligations and ongoing immigration compliance. If your business sponsors overseas workers and would like to review its compliance process, contact our team to discuss how we can assist.
